How much Life Insurance is enough?
There is no such rule as to how much Life Insurance is adequate for an individual. Whether you're married or single, you'll need to figure out every bill that you currently have. In most cases, if you have no dependents and have enough money to pay your final expenses, you don’t need any Life Insurance. If you have dependents, buy enough Life Insurance so that, when combined with other sources of income, it will replace the income you now generate for them, plus enough to compensate any expenses they will incur to replace the services you provide.
Why do different people pay different levels of premium for Life Insurance?
The price you pay for Life Insurance mainly depends on your age, your health and your lifestyle and occupation. If you are older, you have health problems, and you are a smoker and you work in a dangerous environment you will always pay more for Life Insurance than someone who is younger, healthier, a non-smoker and is in a low risk occupation.
Should I buy Life Insurance for my spouse or children?
Essentially, it’s important to protect the earnings of the primary breadwinner before considering Life Insurance for your spouse or children. If your spouse works, then you should purchase insurance to protect spouse's earnings as well. If you are considering Life Insurance for your children, then it should be done with discretionary funds only.
Is it important to buy Long Term Care Insurance?
Long Term Care Insurance covers a person against the costs of health care whether it’s community-based care or nursing home care. Long Term care is the biggest financial risk people face at retirement although people don’t realize when they are young and healthy. Without it, you may be forced to spend your illness term in a shared room in a Medicaid approved nursing home when your assets are used up. In many US states, Medicaid does not cover home care and also not all nursing homes take Medicaid patients. It’s better to plan out your retirement years in advance so that you live in peace of mind.
Can I get Disability Insurance if I have any health problems?
Disability Insurance offers you a replacement income in case you are unable to work due to injury or sickness. You can get disability insurance even if you have a history of health problems or are currently facing any health issue. The amount of coverage will depend on your health history and you will get disability coverage with exclusions.
What is Roth IRA? What are its benefits?
A Roth IRA is an Individual Retirement Account that provides tax-free growth. It continues to grow tax-free for as long as you own it. In contrast to Roth IRA, Traditional or Regular IRAs grow tax-deferred, and both the principal amount and the growth are taxable at the time of withdrawal. Also, you can withdraw money from Roth IRA anytime without paying taxes up to the amount of your contribution.
How is Annuity different from Life Insurance?
Annuity works like a pension plan where you make an investment either in a lump sum or through installments made over a period of time. Annuities do not provide any life insurance but, instead, offer a guaranteed income either for life or a certain period. There are surrender charges imposed generally during the first 5 to 7 years you own the contract. Withdrawals prior to age 59 ½ may result in a 10% IRS tax penalty, in addition to any ordinary income. The guarantee is backed by the claims paying ability of the issuing insurance company.
What are out-of-pocket-expenses in health Insurance?
Out-of-pocket expenses include your annual deductible, coinsurance share, and any expense deemed unreasonable.
What is Coinsurance?
The percentage amount that you (the insured) will be required to pay to 'share' in the cost of medical care. In most cases there is a limit for out-of-pocket expenses.
Short term or Long term, which Health Insurance should I buy?
A short term health insurance policy is right for those who are without any sort of medical health cover, and for students who have just graduated. The tenure of cover of a short term health insurance policy would range from one month to a year. A long term health insurance policy helps people who have prolonged illness or disability. Long term policies also cover daily routine activities such as assistance in bathing, dressing and meals. While long term health insurance policies do pay for such sort of services, they are expensive. Before you buy a long term health insurance policy, be sure that you have enough money to pay the premium both now and later.
Can Group Health Insurance be categorized under tax incentives?
Yes, Group Heath Insurance is tax deductible and helps the company to manage taxes besides offering health incentives to employees.
Alfred J. Aloisi is a registered representative of ING Financial Partners, Inc., registered to sell mutual funds and licensed to sell insurance and variable products in the states of New Jersey, New York, California, Virginia, North Carolina and Florida. Products may not be available in all states.
Branch Office: 43 Maria Court, Holmdel, NJ 07733. Securities offered through ING Financial Partners, Inc., Member SIPC www.sipc.org & FINRA www.finra.org
Alfred Aloisi Associates is not a subsidiary of, nor controlled by, ING Financial Partners, Inc.