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Life Insurance and Financial Planning

So what does Life Insurance and Financial Planning have to do

with Disaster Preparedness?

The US is regularly hit by hurricanes, floods, earthquakes, wildfires,

tornadoes and other natural disasters.

While there is no way to guarantee you or a loved one will never get hurt

by a natural disaster, you can protect your family from the financial consequences.

While we hope you do not die in a natural disaster, there are other types

of disasters - these can happen in buildings, in vehicles on the highway,

and so many more possibilities.

What if you do not die, but become disabled and cannot work?

How will you pay for medical bills let alone daily life debts such as rent

or your mortgage, utilities, food, clothing, school for your children ...

the list goes on.

While life insurance cannot prevent natural disasters from occurring,

it can prevent your loved ones from being unable to pay the bills if something happens to you.

Insurance vs. Assurance

The specific uses of the terms “insurance” and “assurance” are sometimes confused.

In general, in jurisdictions where both terms are used, “insurance” refers

to providing coverage for an event that might happen (fire, theft, flood, etc.),

while “assurance” is the provision of coverage for an event that is certain

to happen.

In the United States, both forms of coverage are called “insurance” for reasons

of simplicity in companies selling both products. By some definitions,

“insurance” is any coverage that determines benefits based on actual losses

whereas “assurance” is coverage with predetermined benefits irrespective

of the losses incurred.

Life insurance may be divided into two basic classes:

Temporary and Permanent;

or the following subclasses:

term, universal, whole life, and endowment life insurance.

Life-based contracts tend to fall into two major categories:

~ Protection policies:

These are designed to provide a benefit, typically a lump sum payment,

in the event of a specified occurrence.

A common form—more common in years past - of a protection policy design

is term insurance.

~ Investment policies:

The main objective of these policies is to facilitate the growth of capital

by regular or single premiums.

Common forms are whole life, universal life, and variable life policies.

What are some of the services available to help in case of Disaster or

Emergency Medical situations?

What type is right for you and your family?

It all depends on your individual situation.

Part of your Family Planning is getting together with your insurance agent

and having a review.

Every time your life "changes" (this includes changing jobs, getting married,

having a baby, retiring , and other milestones)

- Juvenile policies:

General savings, college savings, tax free asset allocation for the future

(ie. down payment on home, education, vacations, car etc...)

- Asset Allocation/Pension Maximization:

Creating a financial arm free from the IRS by accumulating tax deferred savings 

   and accessing tax free contributions. (Ideal for government workers)

- Mortgage protection:

Mirroring a life insurance policy with the size of the current mortgage 

   in order to pay off mortgage in the event of the insured's untimely death.

- Retirement funding:

Making sure that a clear goal is established for what lies ahead by not spending more 

   but repositioning what you already have.

- Fixed Annuities:

Creating a pension to guarantee a consistent paycheck for the rest of your life.

- Long Term Care:

Three out of four people experience a long term care incident after retirement. 

LTC is there to soften the impact on medical bills, recovery and surrounding family and friends 

should they be the ones taking care of you.

Insurance agents are there to help you determine the best coverage

for you and your needs. Ask the hard questions. 

 Make sure you understand the policies you have and what they do and do not cover.

Financial advisors have to complete specific training and hold a license to provide advice.

In the United States a financial adviser carries a Series 7 and Series 65 or Series 66 license 

and according to the U.S. Financial Industry Regulatory Authority (FINRA), license designations 

and compliance issues must be reported for public view.

FINRA describes the main groups of investment professionals

who may use the term financial advisor to be: brokers, investment advisers, private bankers, accountants, lawyers, insurance agents and financial planners.

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