In these uncertain times, we thought you might find this strategic alert on personal financial security planning of interest. Please review and get in touch with questions. Stay positive, healthy and safe.

COVID-19 Resources

Pandemics make us all feel mortal and bring out our survival instincts. In addition, uncertainty creates anxiety and fear. Here are some useful resources to navigate this crisis:

  • Health Care: To help you and your loved ones stay healthy and safe, we have alliances with a few boutique health advisory firms. John Samuels from Better Health Advisors can guide you on general health questions. Joanna Gordon Martin from Theia Senior Solutions specializes in elder care solutions. If you would like to learn more about their services and capabilities, get in touch and we would be happy to connect you.
  • New Legislation: Our affiliation with industry knowledge pools give us access to great thought leadership. The Association for Advanced Life Underwriting (AALU) has developed timely content on how entrepreneurs can maximize benefits under the new CARES Act to keep their businesses going until the economic climate improves (learn more).

Life Insurance

Life Insurance remains the foundation of everyone’s personal financial security as it provides tax-free liquidity to replace lost income, pay off debts, continue a business, or pay eventual estate taxes. Here are some answers and thoughts to questions that may be on your mind right now:

  • Q: Will my in force policy cover a COVID-19 related death?
    A: Yes, carriers don’t exclude pandemics. Incidentally, one of our clients just passed away and the insurance carrier processed an eight digit claim in less than two weeks.
  • Q: Is my insurance carrier stable and will the current economic climate impact my policy?
    A: Insurance carriers are well capitalized to weather this storm. However, low (or no) interest rates and market volatility will leave a mark on every financial and insurance product. Thankfully, all our in force policies are term, no-lapse guarantee, fixed and indexed universal life products so their downsides are protected.
  • Q: Can I get additional coverage without being seen by an examiner to comply with social distancing guidelines?
    A: Yes, big data and AI have eliminated the need for invasive insurance exams, etc. If you are in reasonably good health, we can arrange up to $5,000,000 of new term or permanent coverage completely electronically. If you take comprehensive annual physicals and can help us with the extraction of your medical records, we may be able to line up $20,000,000 of permanent coverage or more without insurance exams.

Carriers are adjusting to this new environment quickly and our Lion Street resources are keeping us up to date on product changes and available accelerated and streamlined underwriting programs (learn more).

Long-Term Care

Odds and costs of Long Term Care events can be significant. Couples over age 65 have a 70% chance of one event occurring which can easily cost high six or low seven digits after-tax in our area. With financial markets in turmoil, spending some time on this subject might be a timely and prudent move to protect your investments and retirement savings.

Some of you may have tried to solve this problem before with yesteryear’s Long Term Care policies which likely left a bad taste in your mouth. To compensate for flawed actuarial assumptions, most carriers imposed several rate hikes and/or benefit reductions, eventually exited this business and are now merely servicing their in force policyholders.

The good news is that the Long Term Care marketplace has evolved and better solutions are available. Today’s policies offer more design flexibility, comprehensive benefits covering many different care settings, rate guarantees and cash values should planning needs (or products) change down the road.

If you would like to learn more about the current Long Term Care space, happy to educate you about the basics, pros and cons of available planning options, creative funding strategies (i.e. tax-free policy swaps), cost of care maps and whatever else you need answered (learn more).

We are here and open for business so get in touch with your questions or concerns and we will do what we can to restore confidence and peace of mind to your financial affairs.

Stay positive, healthy and safe and we will get through this together.

PS: To all healthcare workers and first responders fighting on the front lines, thank you.

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