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Category Archives for "Senior Life Insurance Plans"

Many senior citizens discover, to their surprise, that they have not outlived their life insurance. Seniors that find themselves in this situation may realize their coverage has lapsed or even expired, now what? We’ll help you figure out your next step!

I’m a Senior Citizen and I Forgot to Buy Life Insurance In 2017!

Have you retired and realized that you don’t have the life insurance coverage you want or need?


We all make mistakes and in our busy daily lives, forget to attend to some of life’s most important details. Age can be a sudden reminder of what we were supposed to do.

Don’t be embarrassed…buying life insurance is something many people ignore or put off. Perfect financial planning doesn’t happen when we want it to, and we wake up one morning in a panic.

If you’re 55 or older, you may think life insurance is out of reach. High premiums, medical exams, and pre-existing conditions are not insurmountable. There are different options for seniors like you to make life insurance possible and affordable.

So whether you have a new grandchild you want to provide for, or you’re thinking of another personal reason to buy now, there are many choices to consider.

Is it Too Late to Provide for My Family?

It’s no surprise that a lot of senior citizens have questions about life insurance. A top concern is that it’s too late to purchase a policy. It’s crucial to remember is that it’s never too late to consider life insurance as part of a sound financial plan. Providing for your family is too important to give up because you think you may have missed a deadline.

Life insurance protects your family’s assets from a wide range of final expenses, and you’re never too old to make sure they have the financial resources for:

Funeral, burial, and cremation costs

Outstanding debts like a reverse mortgage or a forgotten credit card

Unexpected medical bills not covered by Medicare or insurance

Just last year, the cost of a funeral in the U.S. was more than $11,000. Imagine leaving your loved ones without life insurance to cover those expenses and others. Bills can burden surviving spouses, children, and other family members. Before you decide it’s too late to purchase a life policy, get the facts and protect the ones you love.

You Can’t Plan for Everything When You’re Young

Everyone shops for insurance when they’re young. That’s the old way of buying insurance.

Mature adults like you are retiring later and living longer. Life goes on after 60 and sometimes seniors may not have expected another 20 years. They may have special financial concerns not related to survivorship, or be enjoying the best years of their lives.

There are many reasons that today’s older adults are looking at life insurance:

Newly acquired debt — whether it is a new RV purchased to travel the country or a credit card used for a few extravagant perks, a life insurance policy will ensure that your estate does not end up in the red.

Legacy planning — did you discover a new passion late in life that deserves support? Many seniors today are establishing trusts, scholarships, or other charitable contributions as an ideal way to make a lasting difference.

Disabled relatives — when a child or family members suffer a sudden and catastrophic health problem, life insurance can provide the financial security and help close the gaps left by medical bills.

We all know that life can move fast. Priorities change and plans go out the window. You’ve earned the right to change your mind and make new plans — no matter what your age.

Discuss your special needs with an insurance agent to find out how to adjust your financial planning to fit your new senior lifestyle.

Explore the Market

By now, you’ve probably watched enough television ads on nightly television. They promise affordable premiums and benefits supposedly tailored to meet your needs, but do they really know you or the reason you’re buying insurance?

With age comes wisdom, and it’s always better to investigate before you settle on a 1-800 number answered a thousand miles away. You waited this long to find the right policy, so there’s no need to rush into a product that won’t meet your needs. Remember, it’s never too late to take the time to find the insurance option that suits you.

I’m a Senior Citizen and I Forgot to Buy Life Insurance!
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Expert Advice and Honesty

Chris brings expert advice and honesty to every project we work on. He gets things done in a timely manner and does an excellent job following up.

Brad Branson , Partner/Investment Adviser- Cornerstone Capital, Inc
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Didn't Try To Upsell Me!

I found Chris when looking for life insurance brokers. I knew exactly what I wanted and told Chris and he was able to deliver without trying to upsell me on something else. It was very straightforward and exactly how I hoped it would be. I would definitely recommend him for anyone in a similar scenario.

Nathan Netravali , Associate Director of Clinical Applications at Think Surgical
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CB Acker Associates Is Extremely Responsive

Chris provided (and continues to provide) excellent service and support for our insurance needs. He is very responsive, knowledgeable and provides specific and efficient solutions to our insurance needs. I highly recommend Chris!

Antonio Altamirano , Founder, CEO at Tangelo

​​​​if you've already worked with us, please let us know how we did for you and what we could do better. 

​​please take a minute to complete the form below--it truly helps us improve our process!

In couple of sentences, could you please describe how you found us?
Could you please describe how much research you did before choosing to work with us? Why did you decide to work with us when you have many choices in this crowded term life insurance space?
In a few words please tell us about our process--how easy or difficult was the policy underwriting process--medical exam, scheduling, forms getting signed- any issues or positive thoughts?
What could we do better?

Life insurance For Seniors?


Awesome Cheat-Sheet For Seniors- Do You Need Life Insurance if you're over age 65?


life insurance for the elderly is a very popular topic these days, especially as Baby-boomers age into medicare and retirement


I'm quoted in this piece by Jeff Brown with US News. The article appears in its entirety.

The one thing this article does not discuss if the process of enrolling in Medicare, and additional insurance plans available.  Medicare planning and Medicare Supplement insurance, in particular, is a vital aspect of insurance planning during your Senior years.  Please make sure that you review your options.  Here's a link to a great resource about Medicare Supplement Plans my colleague has put together that addresses this specialized area.

Seniors life insurance for a variety of purposes. My specialty is helping them use life insurance to provide liquidity for estate tax funding. 


In large estates, it is often much less expensive to purchase a specialized life insurance policy to pay these taxes than it is to liquidate portfolios and real estate. Many tax attorneys and CPA's recognize this fact and recommend that families, who will face large estate tax bills from the IRS consider life insurance as a viable tool in their estate plans.


of course, the question, ultimately,is whether there is still affordable life insurance available after age 65 or 70.  no matter what the need, "affordable" is up to those paying the premium!  read on and decide for yourself...


 

Here's the article thanks to Jeff Brown at US news:

By Jeff Brown | Contributor

Nov. 14, 2016, at 10:40 a.m.

Anyone with dependents needs life insurance, we're told. Policies on parents can provide food, shelter and education until children can provide for themselves. Husbands and wives can get policies to make a survivor's later years more secure and comfortable.

But what about people in their 50s, 60s or beyond? Many seniors have never had life insurance. Some had term policies that expired after the children grew. Some drop their coverage because they thought their investments had grown big enough and then find things aren't working out.


So what are the ins and outs of getting a policy later in life?

Several purposes. Insurance experts say older people may need life insurance for a variety of reasons:

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  • Provide for a surviving spouse or young children from a second marriage.
  • Pay estate taxes.
  • Help with long-term care expenses.
  • Help heirs pay taxes they will face from inherited IRAs and 401(k)s.

Many seniors also have business interests, says Kenneth Pendley, a long-time insurance executive who is national marketing director for Atlanta-based Habersham Funding, a life settlement provider that converts policies to cash or income streams.

"In such circumstances, life insurance may be necessary or helpful to hedge against business interruption upon the death of a business owner or key employee or partner," Pendley says.

The website Quickquote.com shows that a 65-year-old non-smoking man in good health could get a $500,000 20-year term life policy for about $5,300 a year, compared to about $275 for someone who is 35.

Options for policies. Though a policy may be pricey for a senior, chances are you could find one, says Anthony Martin, owner & CEO of the Choice Mutual agency, a Citrus Heights, California, firm specializing in life insurance for seniors.

"It's very uncommon for someone, senior or not, to be flat-out declined for any sort of underwritten life insurance," he says.

Age, health and smoking history affects the premium, and he warns that advertising typically lowballs the cost.

While there are many types of policies with different names, all fall into one of two categories. Term policies are cheapest because they last for a specific number of years, and cost more for longer periods. Permanent policies can be much more expensive but last for life, so no matter how old you are when you die your survivor gets the death benefit.

Regardless of the type of policy, one with a bigger death benefit is more expensive than one with a smaller benefit. But even though premiums are larger for older policyholders, the math can work out, says Chris Huntley, owner of Huntley Wealth & Insurance Services in San Diego.

"A healthy, non-smoking 70-year-old female could purchase a lifetime guaranteed policy with a $250,000 death benefit for as little as $4,982 per year," he says, referring to a type of permanent insurance. "Assuming she lives to age 86, her life expectancy based on the (Social Security Administration) actuarial life table, she will have spent just $79,712 in premiums."

It would take an unlikely 12.49 percent return for those premiums to grow to $250,000 over the same period in an investment, he says.

A matter of taxes. Years ago, people later in life bought life insurance to help pay estate taxes. But in 2017, the first $5.49 million of an estate will be exempt from this tax, so many people don't have to worry about it.

But for those who do, many choose a survivor life or second-to-die policy, types that pay off only after the second spouse dies. This is cheaper because a couple, compared to an individual, has twice the chance of one living longer than average, says Chris Acker, owner of CB Acker Associates Insurance Services in Palo Alto, California.

"While seemingly expensive, the premiums on a life insurance policy designed for estate tax funding are usually a very good return on investment for the families involved," Acker says. "It's typically much less expensive to buy life insurance than to liquidate assets to pay taxes at death."

Policies for estate taxes are typically purchased within an irrevocable life insurance trust, so the benefit is not counted in the taxable estate, he says.

Life insurance can also help heirs pay taxes that will be due on tax-deferred retirement accounts like traditional IRAs and traditional 401(k)s even if there is no estate tax, adds Nancy Butler, author of "Above All Else, Success in Life and Business," and owner of an advisory firm of the same name in Waterford, Connecticut. Butler teaches continuing education courses in life insurance.

"Many heirs loose over 45 percent of the tax-deferred assets left to them," she says. "Without proper planning, a large percentage of the money you worked your life to build could be lost to income taxes rather than being passed to who you want it to go to."

Additional uses. Yet another purpose for life insurance late in life is to replace pension income that may dry up after the beneficiary's death, she adds.

Often, Martin says, seniors get life insurance for specific purposes such as paying off a mortgage or other debts, funeral expenses or caring for an adult child with a disability. In these cases, a term policy large enough to cover the expected cost may be cheapest.

But Acker cautions that it can be difficult or impossible to get a term policy after 60 or 65, while permanent policies may be available for people as old as 90.

He says some permanent policies offer riders to fund long-term care, and can be a better deal than ordinary long-term care policies.

"With the life insurance policy/long-term care rider option, people tend to feel confident that this policy will be used," Acker says.

Seek expert help. While you can shop for policies on your own online, many experts recommend using an insurance broker who represents many providers and knows details you might not easily find online, like whether given medications will get your application denied or boost the premium. Term life is pretty straightforward, but permanent policies have so many provisions it's hard for an amateur to make apples-to-apples comparisons.

"Above all else, the advisor needs to be an independent agent," Martin says. "I cannot stress this enough."

He also recommends agents who specialize in life insurance and don't do policies for cars and homes. A good independent agent should represent at least 10 carriers, he says.


Butler points out that premiums can be lower if you pay once a year rather than several times or monthly. And she says shoppers should look for "break points" where a larger policy becomes cheaper than one that is only slightly smaller

life insurance for seniors

You Still Own That Life Insurance Policy and You’re Retired? WTF? You’ve GOT To Be Kidding Me!

Why Use Life Insurance During Your Retirement years?

I'm posting an article which appeared on Forbes online recently which discusses the use of permanent life insurance during one's retirement years.  While I am a huge proponent of term life insurance, I do appreciate some of the points raised by the author-mainly, that it's very difficult to create absolute profiles in which each client fits.  Rules-of-thumb and cookie cutter solutions need to be ignored when you think of your own financial situation.  Do you WANT to own life insurance when you pass away, no matter if it's tomorrow or age 120?  People often forgot to account for their own desires when considering whether to keep an existing policy or let the policy lapse simply because they've reached age 65 and they've been told that they "don't need life insurance beyond age 65".

Financial Media Don't Deal Directly With Families

Many, if not most, financial content providers are paid affiliate fees or compensated indirectly in other ways by the financial products they "review" or mention.  One thing I appreciate about the Forbes piece is that the author has interviewed real insurance/financial professionals.  No one has made sweeping blanket statements about the "evils" of owning and paying for life insurance, especially permanent insurance, into our later lives.  It's not a bad thing if a family wants to actually keep life insurance on the books to provide instant cash and peace-of-mind for loved ones.  Life insurance is all about choices and not about rules-of-thumb.  If a family has a net worth of $20Million on paper, many financial pundits would make a blanket argument that it's ridiculous to keep an old life insurance policy and not simply cash it in because, as the mainstream financial media says, "with $20Million, you should self insure".  Financial media need to shift focus on what clients WANT, not what someone else says you should do.   I tend to be a bit jaded in my opinions about mainstream financial media.  I understand the need to develop an audience, yours truly included, but I think it would be refreshing to acknowledge any conflicts of interest up front.  


Here's the article:

Many people do not view life insurance as an essential and vital part of a retirement income plan. They see life insurance primarily as a way to protect families from the early loss of a breadwinner during the working years. However, life insurance has the potential to be so much more if properly utilized in a comprehensive retirement income plan. According to Jen Sias-Lyke, State Farm® Insurance Agent, “Life insurance plays an important role in any financial plan. It helps loved ones recover from financial risks and unexpected costs, increasing their chances of reaching long-term goals and achieving dreams. Thinking about financial protection and retirement can seem overwhelming, but as your life changes so does your financial situation.” Unfortunately, many people do not fully understand nor appreciate the value and benefits that life insurance can represent as part of a retirement plan. Having the correct type of life insurance and the appropriate amount of life insurance coverage in retirement will accomplish multiple jobs. It can help protect your income, provide tax-free cash flow, help manage taxes, provide peace of mind to families, and even improve the total returns in a portfolio. Here are a few strategic ways to utilize life insurance as part of a comprehensive retirement plan:

Protect Your Income in Retirement. According to James J. Meehan, MSM, Managing Partner of 1847Financial, “Life insurance needs to be the foundation of any solid retirement plan if your family is depending upon your retirement income. You can't invest your way out of an untimely death.” When one spouse passes away in retirement, the surviving spouse often struggles to meet their income needs. While expenses might be lower, the drop in expenses rarely offsets the drop in income. At a minimum, one of the two Social Security benefits the couple was receiving will go away. So for many couples, life insurance can be used to ensure that there is enough money to replace any lost Social Security or other retirement income. In this way, the surviving spouse is able to maintain his or her current standard of living throughout retirement.

Protect Your Income in Retirement. According to James J. Meehan, MSM, Managing Partner of 1847Financial, “Life insurance needs to be the foundation of any solid retirement plan if your family is depending upon your retirement income. You can't invest your way out of an untimely death.” When one spouse passes away in retirement, the surviving spouse often struggles to meet their income needs. While expenses might be lower, the drop in expenses rarely offsets the drop in income. At a minimum, one of the two Social Security benefits the couple was receiving will go away. So for many couples, life insurance can be used to ensure that there is enough money to replace any lost Social Security or other retirement income. In this way, the surviving spouse is able to maintain his or her current standard of living throughout retirement.

Keep Your Retirement Savings on Track. According to retirement income expert Curtis V. Cloke, CLTC, LUTCF, RICP®, “In the 10 years leading up to retirement, many couples find themselves playing catch-up on their retirement savings. During this period, if one spouse dies, the surviving spouse could end up being severely short on retirement savings.” For this reason, Curtis recommends buying a 10- to 15-year term life insurance policy on both spouses prior to retirement in order to protect the retirement savings plan. Cloke notes that the premiums for this term policy could be very inexpensive, so it will not place a huge financial burden on the couple. However, he also notes that you might want to get a policy that can be converted into a permanent policy in case a future life insurance need arises. A convertible term life insurance policy will help protect your insurability in case health changes.

Improve Your Investment Asset Allocation and Returns. With interest rates close to historical lows, bonds and CDs are not an attractive investment for many retirees today. However, most people still need some safe investments and assets in their retirement income portfolio. Tom Hegna, CLU®, ChFC®, CASL®, a professional retirement planning speaker, author, and host of the popular PBS TV special "Don't Worry, Retire Happy!", suggests positioning life insurance as a substitute for bonds in a retirement income portfolio. “Right now bonds have very little upside. They are only paying in the 1 to 3 percent range. Yet the risk of holding bonds is very high. If interest rates rise, the downside risk to bonds could be 20-30 percent or more.” Hegna recommends that “retirees should consider a whole life policy as a bond substitute for some or all of their bond portfolios. The life insurance policy can provide bond-like returns of 3 to 5 percent without the interest rate risk of a bond.”


Keep Your Retirement Savings on Track. According to retirement income expert Curtis V. Cloke, CLTC, LUTCF, RICP®, “In the 10 years leading up to retirement, many couples find themselves playing catch-up on their retirement savings. During this period, if one spouse dies, the surviving spouse could end up being severely short on retirement savings.” For this reason, Curtis recommends buying a 10- to 15-year term life insurance policy on both spouses prior to retirement in order to protect the retirement savings plan. Cloke notes that the premiums for this term policy could be very inexpensive, so it will not place a huge financial burden on the couple. However, he also notes that you might want to get a policy that can be converted into a permanent policy in case a future life insurance need arises. A convertible term life insurance policy will help protect your insurability in case health changes.

Improve Your Investment Asset Allocation and Returns. With interest rates close to historical lows, bonds and CDs are not an attractive investment for many retirees today. However, most people still need some safe investments and assets in their retirement income portfolio. Tom Hegna, CLU®, ChFC®, CASL®, a professional retirement planning speaker, author, and host of the popular PBS TV special "Don't Worry, Retire Happy!", suggests positioning life insurance as a substitute for bonds in a retirement income portfolio. “Right now bonds have very little upside. They are only paying in the 1 to 3 percent range. Yet the risk of holding bonds is very high. If interest rates rise, the downside risk to bonds could be 20-30 percent or more.” Hegna recommends that “retirees should consider a whole life policy as a bond substitute for some or all of their bond portfolios. The life insurance policy can provide bond-like returns of 3 to 5 percent without the interest rate risk of a bond.”

Manage Your Taxes. Russ DeLibero, CFP®, ChFC®, CLU®, who also holds a PhD in Financial and Retirement Planning, notes that there are tremendous uses of life insurance in a retirement income plan because of the preferential tax treatment that life insurance receives. According to Dr. DeLibero, “When properly structured, life insurance can provide tax-deferred growth, tax-free cash flow, and a tax-free death benefit. The tax-preferential treatment provided to life insurance allows an individual to have greater flexibility over which dollars to use during retirement, and depending on the type of life insurance, it can also provide a non-correlated asset to the portfolio providing additional diversification.” With tax rates constantly changing, life insurance can also function as a hedge against future tax rate hikes. “The tax-preferential treatment of life insurance can be especially advantageous for individuals in a higher income tax bracket or as a hedge against a rising tax environment. As taxation rises, tax-free cash flow becomes more advantageous.” Tapping into cash value income tax free can be a great way to supplement a retirement income plan and, at the same time, help manage taxes.

Make sure to investigate the ways life insurance could fit into your retirement plan. Not everyone’s needs are the same. Some might benefit from term life insurance while others might benefit more from permanent life insurance. Still others might not have a significant need for additional insurance. There are those who already have insurance who may be underinsured and are leaving much risk on the table by not having the proper amount or type of life insurance. For those considering getting life insurance, sooner is better than later. Unfortunately, many people ignore the need for life insurance until some mortality event suddenly occurs. Jen Sias-Lyke states that, “Key life events such as marriage, moving or buying a home, having a child, changing jobs, and retiring could signal the need for changes to a financial plan. Life insurance should be an important piece of that conversation.” Take the challenge seriously, because having the right plan and the appropriate life insurance policy can improve your retirement. Start the process today by doing your due diligence. Determine your specific life insurance needs, get referrals for a quality life insurance specialist, and review the companies offering life insurance policies before you purchase. Remember, life insurance can provide more than just protection during the working years. It can continue to provide protection and benefits throughout retirement.

Life insurance in retirement

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