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• INSURANCE AUDITING •

 


Insurance auditing involves looking at your current risk management plan to determine whether your plan is still going to work the way you originally intended. A comprehensive insurance audit includes: life insurance, long-term care insurance, disability insurance, health care insurance, and property and casualty insurance. 


 

 

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What Is a Life Insurance Audit?


A life insurance audit is more than just getting new quotes. It's a comprehensive process that evaluates your current life insurance coverage, and it is designed to determine whether your current life insurance performance is in line with your goals and expectations. A life insurance audit determines whether more cost effective or enhanced coverage is available.

 
 

Why Have an Audit Done?


Many clients do not realize their life insurance needs may have changed since they first purchased their policy. Also, certain assumptions were made at the time of purchase about interest rates, planned premiums, and policy charges that may be out of date given the constantly changing market. Because of these changes, you may learn that regardless of the fact that you have made all of your insurance premiums on time, your policy may lapse before the end of your life. That's why it's so important to have a life insurance audit done regularly. In our experience, insurance audits have often been able to achieve one or more (and in some cases, all) of the following benefits for policyowners:

  1. Lower or no premiums
  2. Higher death benefits
  3. Extended guarantees
  4. A more highly rated company
  5. For variable policies, better investment selections
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What Is Disability Insurance?


  • Disability insurance provides you with income if you are no longer able to work due to accident or illness. 
  • It allows you to continue paying your bills, even if you are not able to work.
  • Disability income insurance is one of the most important ways to protect your family and assets.

Should I Get Disability Insurance?


Each year, approximately one in eight people becomes disabled. Unfortunately, many people have to worry not only about their health, but also about replacing their salary. Almost everyone protects their families from loss due to death with life insurance. Surprisingly few have protected themselves from disability even though there is a much greater likelihood of becoming disabled than passing away in your younger years. 

Many people are provided disability insurance through their employers, but the self-employed, the professional, and the business owner are challenged with finding adequate disability coverage in the type and amounts they need. As part of our comprehensive financial planning process, we will identify possible gaps in your current risk management plan, and we will help you find appropriate solutions to protect your family.


 

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Property Casualty Insurance
 


Unforeseen accidents are a part of everyday life. At home, at work, and on the playground, we are at risk of getting into an accident, having something stolen, or being struck by an uncontrollable misfortune, like a fire or earthquake. Insurance is something that helps us feel a little safer about these unexpected events and protects us financially in case something does happen. The types of insurance available vary. The insurance you decide to take out will also depend on what you need and want insured. When you own a home, property insurance should be seriously considered. Casualty insurance is another form that could come in handy.
 

Property Insurance


Property insurance usually covers your home or business building, as well as the contents within these places against things like damage, theft, or loss. Not all property insurance policies cover everything; read the fine print to make sure that you are covered for everything. Some policies only cover against fire damage, others against theft. When taking out property insurance, it's important to check that it is for multiple perils—fire, theft, loss, and others.

The type of property insurance you take out will also depend on your location. If you live in a zone where earthquakes are unlikely, you won't need to take out earthquake insurance. If you live in a wet zone where heavy rain occurs regularly, making sure your property insurance covers flood damage will be a good idea.

 

Casualty Insurance


Casualty insurance is a little different. It covers the loss and liabilities of a person or property. The loss or liability is also due to unexpected accidents, but it excludes life, health, and fire accidents. For these, you will need separate coverage. Casualty insurance covers things such as burglary, fraud, or terrorism. If your house is burglarized, and you have casualty insurance, you may be able to recover the financial cost of stolen property. Casualty insurance is beneficial for both business owners and homeowners. If you live a high-risk lifestyle in which accidents tend to occur, covering yourself with casualty insurance is beneficial. For businesses, it protects you when someone in the work force is injured.

The type of insurance you choose will depend on your personal situation. Before taking any insurance out, it's important to ask lots of questions and be certain of what the insurance policy, whether it's property or casualty, covers. The insurance policy should match your needs and wants and not have you left out in the cold when an accident occurs.

As part of our comprehensive financial planning process, we can review your current coverage and make suggestions to improve your level of protection. If desired, we can also help you find a qualified, professional agent to ensure you get the correct coverage for you, your family, or your business.

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Have You and Your Family Discussed Long-Term Care?



Many people believe that a long-term care event will not happen to them. You may be in good health, active, and not old enough to think about planning for a potential long-term care event. But have you thought about what a long-term care event could do to your family and your finances? Individuals are living longer, but we are not necessarily living these years in the best of health. Although medical advances have helped increase life expectancy, we still must face the realities of aging. One of these realities is the need for assistance with daily activities.

Consider a few facts about long-term care:

  • Long-term care refers to the assistance required when a person is unable to perform activities of daily living due to illness, accident, cognitive problems, or the frailties of old age. This custodial care includes needing help with bathing, dressing, eating, toileting, continence, and transferring.
  • Medicare doesn't cover most long-term care expenses.
  • Medicaid only covers nursing-home care once a person has depleted his or her own assets to poverty levels.
  • The nationwide average cost for a private room in an assisted living facility is $3,450 per month.*
  • The nationwide average cost for a private room in a nursing home is more than $84,000 per year.*
  • Care at home can range from $30,000 to more than $100,000 per year, depending on the geographic location and the level of care needed.
  • Actual cost of care will vary in each state. View the most recent cost of care in your state.

The best time to talk about a crisis is before it happens. That's why we encourage you to have a conversation about long-term care with your family today. As you discuss these important issues, please remember that we can provide you with information about long-term care planning and review your financial plan to ensure that you're prepared for the life changes we all face.



**According to the Genworth 2014 Cost of Care Survey