What Got You Here…
Happy 2020, by the way! We’re finally through the holiday season and are anxiously waiting for the time change to happen. This is my least favorite time of the year, but I’m blessed to continue to be busy serving current clients and all of the referred people that come to me for their insurance and investment planning needs.
“What got you here, won’t get you there.”
I love this saying, and it definitely rings true in my industry. It’s easiest to understand with the technological advances in automobiles, cell phones, and especially in the way we receive our information. Remember AOL and dial-up computers? Still have a flip phone? Not that long ago, was it? Even my 80-something year old Mom has an iPad.
Today, I have access to concepts and tools that one could only dream of when the millennium happened twenty years ago. To say that I’m enjoying what do is an understatement.
Regarding home, auto, and business insurance plans, being with one company for a long period of time might not work in your favor. If you have owned policies with a brand name company for a long period of time, there’s a possibility you might be underinsured, paying much more than you should, or don’t have the newest offerings available to you through other companies. Primarily because that agent can only sell their company’s products and they have no other options.
Being an independent broker, we do our best to review and re-market every client’s plans periodically to make sure we are offering the best pricing for the strongest coverages. Last year, I earned a new client and saved him $5000/yr. for his home, auto, and umbrella plans. Last week, we re-marketed his account yet again and I’m saving him an additional $2000/yr. That’s $7000 we’ve put back into his life to do other things! Needless to say, he’s smiling right now.
If you own life insurance, there are a myriad of changes in that industry that you should be aware of. Term insurance continues to become less expensive, and people are living longer. And who knows this better than life insurance companies? Fifteen years ago, 20-year level term was the longest available product. Today, we offer not only 30-year level, but a concept called “Term for Life.” Many people like it because they know they will not outlive this policy. And did you know that 98% of all term policies issued do not pay benefits to the beneficiaries? That’s simply because people outlive them.
Additionally, there are specific companies that will underwrite a health risk that many others will either decline or charge extra premiums to the insured. I’m referring to those who have dealt with and recovered from heart issues, rehabilition, and especially cancer. Rarely have I seen a client be declined because of these health conditions. But twenty years ago, a client was charged an additional fee just for taking an anxiety drug. Today, they are offered a preferred rating.
Contrary to what the “financial entertainers” proclaim, many Americans own and believe in permanent, cash value building life insurance. But that has changed as well. I still offer and believe in the concepts and strategies available through properly structured life insurance. Today, the focus has changed. Especially for those who are dealing with aging parents and the cost associated with their long-term care. The insurance industry has no clue how to price the cost of aging, and that’s why Long-Term Care premiums continue to escalate annually.
Personally, having a plan for my care in my later years is paramount. I ain’t getting any younger, but do I have a need for life insurance as a single man? Most people would say NO. However, I know by owning a life insurance plan with a Long-Term Care component, that my annual costs will never go up, 100% of the face amount will be available for my care, and whatever is left over will pass on to my chosen beneficiaries. There are no wasted dollars. I will either get my premiums back through living benefits or someone else will get the remainder, all 100% income tax free. By the way, there’s a 70% chance of you needing some form of care later in life.
Maybe it’s time for a review of your current insurance plans! Are you open to strategies that have been unknown to you until reading this? Remember, my role as a financial and Insurance advisor is to exploit every available legal and ethical option for my clients.
If you made it to the end of this blog, first of all, thank you for taking the time to read and consider. Secondly, email me today and let’s get that coffee I’ve offered to all my readers for 15 years.
Conversation, not consultation. That’s my promise. Thanks again and HURRY UP, SPRING!
Brian E. Carden, Insurance & Financial Advisor
Securities and Advisory services through Madison Avenue Securities, LLC. Member FINRA/SIPC, and a registered investment advisor. Stewardship Private Wealth Management and Madison Avenue Securities are not affiliated. Elite Insurance Solutions, LLC and Madison Avenue Securities are not affiliated.