Life Insurance

There are two basic and necessary reasons to buy life insurance. You owe someone or you love someone.

How much life Insurance is right for you?

How much coverage should you own personally, not counting group term coverage? With so many people frequently changing jobs these days, many are learning that owning and controlling their own life insurance policy has many important advantages. In addition they are often surprised to learn that they have been significantly underinsured.

Traditionally, individuals tend to buy life insurance in round numbers — such as $100,000, $250,000 or $500,000 — or using the general rule of purchasing 8-10 times their household income. Few actually try to determine the correct amount to purchase. While doing so is a relatively simple process, it can be uncomfortable for some because it involves thinking about death. Given the importance of this issue to survivors, the best solution is to move beyond that discomfort and prepare accordingly.

Determining what you’ll need.

Consider family needs within the first few months of your death. Funeral expenses, administrative costs and other immediate expenses can be shocking. In addition, clearing up unpaid bills or revolving debt like credit cards or consumer loans is often necessary.

Determine how much will be required to pay off any remaining mortgage balance on your primary residence.

Providing an education fund for your children is also critical. There are many schools of thought regarding this, but you must consider how much money you would like to see allocated for your children’s education in case of your death.

The final issue is often the largest — income replacement. If you have taken care of the above-mentioned needs, most studies indicate that a typical family can maintain its standard of living on 60-75 percent of pre-death household income. While it is a personal choice, you must consider whether the beneficiary will live off the principal paid by the policy or the income it can generate through other investments. It is also important to consider the length of time this money will cover. Most families decide that this should last at least until your children are out of college.

Health Insurance

Health insurance is defined as insurance against loss by illness or bodily injury. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays and other medical expenses. Policies differ in what they cover, the size of the deductible and/or co-payment, limits of coverage and the options for treatment available to the policy holder.

Health insurance is a significant expense for most families and together, we can tailor a plan to fit your needs – and your pocketbook! We could “quote you a rate” – but that would never offer you the benefit of discussing and designing a plan specifically for your needs that you can understand.

Long Term Care Insurance*

Bad things can and do happen to good people. But state-of-the-art, long-term care insurance is available and most people can medically qualify for this coverage. The physical, emotional, and financial devastation that accompany long-term care can be alleviated by shifting the risk to an insurance company. A long term care insurance policy provides benefits for the chronically ill or disabled over a long period of time.

* Long term care insurance is not underwritten through American National Insurance Company.

Medicare Supplement

Medicare Supplement insurance can help you fill in some of the "gaps" that Medicare won't pay. Why is Medicare Supplement insurance necessary?

Because:

1. Medicare does not cover all health care bills.
2. Medicare has deductibles and co-payments for some services.
3. You are responsible for paying the costs of services not covered by Medicare.
   

* Medicare Supplement Insurance is not underwritten by American National Insurance Company.

Deferred Annuities

Deferred annuities are contracts between you and an insurance company in which you pay either a single premium, or multiple premium payments over a specific period of time, which accumulates annuity value that can be accessed when you need it. The premium payments on deferred annuities remain tax deferred until the money is withdrawn. A federal tax penalty of 10% may be assessed on any withdrawals made prior to age 59 1/2.

Immediate Annuities

An immediate annuity is a contract in which the insurance company guarantees to provide a series of substantially equal payments over a period of time in exchange for a single premium paid at issue.

Purchasing an immediate annuity requires a one time premium payment. Retirees often purchase a single premium immediate annuity with funds received from 401(k) plans, IRAs, saving accounts, the cash value or death proceeds from life insurance or the proceeds from the sale of a home. The company issuing the immediate annuity guarantees payments directly to you monthly, quarterly, annually or semi-annually for life or for a guaranteed period of time.

Payments from an immediate annuity can be scheduled to supplement your regular social security or pension plans.

Disability Income Insurance *

Do you own just half of a health insurance plan?

You do if you have health insurance, without disability income insurance. A health insurance plan makes sure doctors, nurses, hospitals and other medical expenses get paid. But who will pay you? With Disability income protection you will receive total or partial disability benefits when you are sick or hurt and unable to work. That's the other "half" to your health insurance plan.

* Disability Income is underwritten by Illinois Mutual.