Insurance Planning

Annuities: Today, the majority of the burden for retirement income seems to have shifted to the individual.  An annuity could play an important part in your overall retirement income strategy.  So, how do you know whether an annuity may be appropriate for a portion of your retirement assets?

•  Are you retired or nearing retirement?
•  Do you currently have a retirement income strategy in place?
•  Do you have steady, reliable income streams or are you working with defined contribution plans, such as a 401(k), 457, 403(b) or IRA?

If you do not currently have a steady and reliable income streams to cover your basic expenses in retirement, you may want to consider an annuity for a portion of your retirement income strategy to provide supplemental income that can help offset the risk of outliving your money.  

Together, you and your financial professional should have a thorough discussion about whether an annuity is suitable for you.  

Life Insurance:  Needs evolve...so should your life insurance.  Evaluating your life insurance needs should not be a one-time event.  In our experience, many financial strategies include life insurance policies that have not been reviewed since they were purchased.  Your life insurance policies are an integral part of your blueprint for life and should be reviewed every year or two to ensure they are performing as you expected and aligned with your current financial goals and objectives.

If properly structured, proceeds from life insurance are generally income tax free.  There are certain life events that may trigger the need for an adjustment to your life insurance.  The most common are:

•  Change in marital status
•  Birth/Adoption of a child
•  New home
•  Taking on debt
•  Planning for college
•  Planning for retirement
•  A significant change in assets
•  A change in your business (for business owners)

Long Term Care:  As the oldest baby boomers begin to wind through their 60s, one of the biggest concerns may not be outliving income, but outliving good health.

For retirees, home health care can cost $65,000 or more per year¹, and nursing home care can run as high as $139,000 per year¹. Does your retirement income strategy account for this kind of possibility? Would you be prepared for twice that amount as a married couple?

Considering that you could have to reduce your financial means before Medicaid will pay for long-term care and neither your employer group health insurance nor major medical insurance will cover long-term care, you may want to consider planning ahead for these potential expenses.

¹Genworth 2018 Cost of Care Survey: Home Care Providers, Adult Day Health Care Facilities, Assisted Living Facilities and Nursing Homes in the San Francisco Bay Area, CA.
https://www.genworth.com/aging-and-you/finances/cost-of-care.html

Medicare:  Is a health benefits program for U.S. citizens or permanent residents who meet certain work history requirements:

•  Age 65 or older
•  Under age 65 with certain disabilities 
•  Individuals with end-stage renal disease (ESRD)

Part A - Hospital
Part B - Medical
Part C - Medicare health plans, which must cover Part A and Part B benefits
Part D - Prescription drug coverage

History - Medicare was signed into law in 1965.  A brief history of Medicare is available at http://www.cms.gov/History

Medicare is administered by the Centers for Medicare & Medicaid Services, an agency of the U.S. Department of Health and Human Services.

To be eligible to enroll in a Medicare plan, a beneficiary must be entitled to Part A and enrolled in Part B.   

Need help clarifying Medicare and finding the right medical care?  We can evaluate your situation, assist and help clarify complex Medicare plans and determine if purchasing a Medicare Advantage, Medicare Supplement or Prescription Drug plan is right for you.  

To schedule a time to discuss your financial future and the possible role of insurance and investments in your financial strategy, contact us at admin@pacificexcel.com or call us at (510) 217-8125 today!

By contacting us, you may be offered information regarding the purchase of insurance and investments products. 

Insurance products and services are offered through Pacific Excel Insurance Services, Inc., and are not offered by J.W. Cole Advisors.  Annuities have limitations. They are long-term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses, or to fund short-term savings goals.  Fixed annuities may be appropriate for individuals who want guaranteed interest rates and the potential for lifetime income. If you take withdrawals before you're age 59½, you may have to pay a 10% early withdrawal federal tax penalty in addition to ordinary income taxes.