We deal with three types of life insurance, and dozens of different companies. The three main types are Term Insurance, Universal Life Insurance, and Whole Life.
Long Term Care is a special kind of medical care for chronic illness. It is the number one cause of financial problems during retirement. It is NOT covered by typical health insurance.
Estate planning is essentially protecting your assets and making sure they go where you want them to go. Estate taxes, probate, and long term care protection are important parts of estate planning.
Annuities can provide life time income that is guaranteed for as long as you live. It is a way to replace the monthly pension checks your parents got when they retired.
Boulder Insurance Group was founded to give clear, honest personal insurance consulting. Our focus on life insurance and income planning makes us unique. We also consult on a clients whole insurance picture to find the best value for the least money. The whole process starts with a personal interview to discover your own individual insurance needs. Information is gathered about things like your current insurance, and future plans. There is no cost for this initial interview. In fact, you never have to pay for any of the work we do. The insurance companies compensate us directly from their general fund. We are independent insurance agents that work for our clients to find the best solutions to their individual needs.
We take pride in our ability to bring the same objective viewpoint to serving our customers life insurance, long term care insurance, medicare supplement insurance, and tax advantaged retirement planning needs. We have the ability to compare insurance plans with you so that you receive the right coverage for your lifestyle and situation.
Term is the least expensive, but only lasts for a specific number of years - 10, 20, or 30 years usually. This type of insurance pays out less than 1% of the time because it is usually not in force when you need it. Great for young families and temporary life insurance needs.
Indexed Universal Life (IUL), is used for growing cash value inside the policy. Did you know that life insurance has living benefits that can be used during your lifetime? The main reason for this type of permanent insurance is to create tax free income during retirement. Premiums can stop at age 65, and income begin. Also, the death benefit can be used to fund long term care with many policies we use.
The third type of life insurance is Whole Life. This is used for long term growth with guarantees. The most exciting use for this type of policy is a concept called "infinite banking." Here you can borrow money to pay for education, buying a car, or buying a house. When you pay the loan back with interest, you essentially pay the interest to yourself instead of a bank.
Here are three strategies we use to handle the cost of long term care.
The first is a traditional Long Term Care (LTC) insurance policy. These tend to be expensive, and can increase monthly premiums by as much as 40% in a single year. They are not available if you are already having symptoms, or need the care. The policies are usually available to purchase up to age 85 if you are in good health. There is usually no return of premium if the benefit is not used.
The second is to use the death benefit from a life insurance policy that has chronic care benefits, or an LTC rider*. If you need the long term care, it is paid for from the future death benefit. If you do not use the long term care feature, the death benefit will pass directly to your named beneficiary. This is a way to have insurance if you need it, but still retain the value if you don't. With this strategy, age 85 is usually the oldest you can qualify, if you are in good health. All three types of life insurance can be used this way, but the original policy has to include this feature - it cannot be added later.
The final strategy is used for people that have assets to protect and grow, but may not be healthy enough to qualify for LTC or life insurance. Many annuities can be set up with a provision for LTC accelerated benefits and strong consistent growth of existing capital. Indexed annuities can grow when markets go up, but stay level when markets go down. Annuities can have qualified (pre-tax) funds, or non-qualified (after-tax) funds. All annuities feature tax deferred growth. Ask me for an example of how this important growth concept works, you will be amazed at the results. Money that is not used to pay for LTC can go directly to your named beneficiary.
*A rider is a special provision in the original contract that gives you extra benefits. An example is long term care.
There are two things most people are afraid of in retirement. The first is running out of money, in other words living too long. A guaranteed monthly income plan can help with this. The second is using up your assets by paying for long term care. An estate plan is not complete without a plan for this.
In order for your assets to be passed on the way you want, we need to do planning in advance. Some important things to consider are estate taxes, trusts, will & probate, and finally what legacy you want to leave behind. We can help you put all you will need in place. Keep in mind that you will need to work closely with you tax planner in many of these areas as well.
Homeowners and Auto insurance – we work with a brokerage that can compare your rates between 20 different insurance companies from one simple form.
If you scan and include the declarations page (usually the first page of the policy or renewal form) we can advise you on important coverage, and the cost of those.
Property and Casualty insurance can be an important aspect of estate planning.
Dental insurance can be purchase along with your major medical insurance in most cases, or as a stand-alone policy.Delta Dental is a good place to start for comparing dental plans. There are literally hundreds of different levels of coverage to choose from.
Vision Insurance can also be purchased along with your major medical insurance, or as a stand-alone product from Vision Service Plan.
Did you know that there is insurance that can pay a cash amount if you are diagnosed with cancer? Some of these policies even contain a rider that will return your premium if you do not use the policy.
This is a plan that can provide up to $10,000 to cover your high deductible if you have a major health event.
Disability insurance is intended to replace your income if you are disabled and cannot work. The amount of insurance available depends on your previous years of income. Usually 60% of your income can be replaced while you are disabled, or until age 65 if the disability is permanent. Short term and long term disability policies are available.
Disability insurance requires a personal visit to determine the correct level to apply for.
Annuities are simply an insurance product that is designed to give you lifetime income. It is income that you cannot outlive, even if the funds are used up. That’s right, if you use up all of the money in your account, the insurance company will continue to send your lifetime checks as long as you live. If you do not use up all of your funds, the balance will go to your beneficiary. Brokerage accounts are good for accumulation (if you don’t mind the risk). Annuities are for distribution. Ask your stock broker if they will allow you to draw funds after the principle is gone.
You might ask “how can annuities work this way?” Annuities are an insurance product. They are backed by insurance companies to spread the risk of dying too soon with living too long among a large group of policy owners. It is the same concept as life insurance, but this is to guarantee income, not an early death benefit. The most common lifetime annuity is Social Security. The second is a monthly pension. The annuities we suggest to our clients are the basic guaranteed monthly income you will need to plan for your retirement.