How much will my insurance quotes and reviews cost?
All insurance services are a free service. Like all agents - including web quoting services - we are compensated by
the insurance company. These rates are built into the policy even if you go directly to the insurance company.
Four Peaks Planning, Inc. uses brokerage firms to shop for your coverage. Our advantage is our firms' knowledge of
which insurer will view your health status best. That advantage could save you 25% in premiums.
Back to Top How do I check the rating of my life insurance or annuity?
We are happy to provide you with the rating of an insurance company. Should you choose to do so on your own,
Either call the insurance company or call these rating agencies to check on the financial stability of
your insurance provider. Some ratings companies charge a fee for this information. Be sure to ask the company for an explanation of
what its ratings mean. Find out how many different rating categories a company has, and what is considered a good rating by the company.
Back to Top What do these ratings mean?
The rating companies above use different criteria. Common criteria includes: profitability, leverage and liquidity tests;
underwriting, control of expenses, adequacy of reserves, soundness of investments, capital sufficiency, earnings performance
and liquidity; all projected over the long term.
Back to Top What can I do to speed up my application?
The factor affecting most insurance applications and underwriting is awaiting medical reports to be sent from the
applicant's primary physician. Call your physician immediately after filling the application asking them to immediately
send your report upon receiving the request from the insurance company.
Back to Top LIFE INSURANCE Why do I need life insurance?
Not everybody needs life insurance. For someone who doesn't have children, liabilities nor a spouse
depending on income, there is little need for term life insurance. Someone not concerned with leaving an inheritance for any heirs
would likely not need life insurance as well.
A parent with children under age 18 should strongly consider term insurance to cover the period of time
until the children are self-supportive and/or beyond higher education years.
The breadwinner of a family should also consider term insurance to cover the period of time until
retirement is anticipated to replace lost income and/or pay off liabilities such as the mortgage on a home.
Term insurance is typically much cheaper than Universal or Whole Life Insurance because it builds no
cash value and lasts only for a specific amount of time, such as 10 yrs, 15 yrs, 20 yrs, 25 yrs or 30 yrs.
Universal and Whole Life have cash values that increase over time as long as premiums are paid into the
policy. Universal Life builds cash value based on an interest rate while Whole Life builds cash value by dividends from the
insurance company. Both typically provide coverage to age 100 and beyond.
Universal and Whole Life are good solutions for building savings in a tax-deferred vehicle and also
providing a larger inheritance to heirs. The best tool for providing a larger inheritance to heirs is Survivor Universal
Life which takes into account both the husband's and wife's age and pays out only after the death of the second spouse.
Normally, a much higher death benefit is attained for the same premium as a lower death benefit on just one spouse.
Back to Top Do life insurance premiums increase?
Level term insurance premiums never increase during the term of the contract.
Universal and whole life premiums can increase if you do not pay enough into your policy or the interest rate/dividends
do not perform as expected.
Back to Top LONG-TERM CARE When do I start receiving my benefit?
Benefits typically start when you are unable to perform two ADL's. ADL's represent Activities of Daily Living and are
used to reflect the conditions for exercise of a policy. If you cannot perform, generally, two or three ADL's,
you may be able to get coverage for home health and/or nursing home care.
Such ADL's may include toileting, bathing, dressing, continence, eating as well as others. Cognitive impairment is
usually defined separately.
Most commentary refers to bathing as the most "basic" ADL since, if you cannot bath yourself, you may also be unable
to bend, move properly, etc. and other ADL's will have already been directly impacted.
Back to Top Where can I find more information on Long-Term Care ?
For more information, use either of these websites:
AARP's website on Long-Term Care
Official Medicare and Medicaid website on Long-Term Care
Take the Medicare's official Personal Assessor for your Long-Term Care likelihood
Back to Top Does Medicare or Medicaid cover Long-Term Care ?
According to the American Health Care Association, 1998:
"...Some believe they can rely on Medicare and Medicaid for help. Medicare focuses on acute
care needs and is targeted to those who need skilled nursing care and rehabilitative therapy at home. Medicare covers short-term
nursing home stays (up to 100 days) covering slightly more than 7% of all long term care. Meanwhile, Medicaid pays for long-term
care only after you "spent down" your private resources which means you could exhaust your savings before you become
eligible for Medicaid assistance."
It is worthwhile to think about the kind of care the state will provide as opposed to choosing the type
and quality of care that private resources could provide. Spending down" your estate refers to spending your
assets, such as IRAs and savings accounts. Some annuities are protected from the "spend down" provisions and you are not
forced to sell your home. But if you were planning on pass on your home or the value of your home to your heirs, then read on:
According to Kiplinger's Personal Finance Magazine 1998 regarding Medicaid:
"...The new rule requires states to recoup some of the costs of long-term care paid by Medicaid by
collecting from former patients' estates... ...Federal law requires that states recover assets from a Medicaid recipient's
probate estate (a Living Trust will not exempt you from this recovery)... ...Homes represent the lion's share of assets recovered
by states from the estates of Medicaid recipients."
Back to Top
Important :
Please consult with Four Peaks Planning, Inc.
before undertaking any actions. The information in this web site is
provided with the understanding that the publisher is not engaged in
rendering legal, tax or investment advice. While every attempt has
been made to provide current and accurate information, neither the
author nor the publisher can be held accountable for any errors or
omissions. You agree not to hold any employee of Four Peaks
Planning, Inc. liable for action you take from the information on
www.fourpeaksplanning.com.
