Heart-to-Heart Connection

To inspire and be inspired!

The Nine Steps to Financial Freedom (4b)

4b. Life Insurance

Life insurance was never intended to fill a permanent need. Commissions on life insurance are one of the most lucrative in any business and we’re paying them.

With low-cost term insurance, we’re paying low commission for a finite length of time that we need protection (see also insurance quoting services: AccuQuote, Insurance Quote Services, Select Quote )

Long-Term Care (LTC) Insurance

The purpose of insurance is to cover catastrophes.  We should always hope we never have to use it; however, there is not one medical insurance policy that covers long-term care.  In 2006, good nursing home care cost more than $6,000 per month.  In major cities, some were already $100,000 per year.

Questions for long-term care insurance companies:

  1. How long have you been selling LTC insurance?
  2. How many LTC insurance are currently active?
  3. How many times have you increased rates for policy holders?
  4. In how many states are you currently selling LTC insurance?
  5. Is your company up for sale?
  6. What are your ratings from the following independent companies, A.M. Best, Moody’s, STANDARD & POOR’s , all of which rate the safety and soundness of insurance carriers?

Estate Planning

Bypass trusts can eliminate estate taxes on estate values up to:

  • 2009    $7 million
  • 2010    No estate tax
  • 2011    $2 million

A bypass trust will cost about $2,500 in attorney’s fees to set up.  But wouldn’t you rather leave your hard-earned money to your loved ones than to the IRS?

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November 30, 2008 - Posted by | Book Review, Mind, Money, People, Spirit | , , , , ,

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