Suggested Insurance Portfolios

When you are not sure what insurance you need.

Caveat

The portfolios you areabout to read are only suggestions. Each person’s insurance portfolio should be built with a careful examination of the individuals future goals and current financial situation.

Term Life Insurance

Term Life insurance pays a cash benefit whenthe insured dies. Since it has no cash value orsavings elements, it is currently veryinexpensive.

Disability InsuranceAlso known as Disability Income insurance, this typeof insurance will pay a stated benefit while an individualis unable to earn an income because of injury or illness. Through-out this slide show, I recommend a 6 monthbenefit period as a minimum. That is because Social Security pays no benefits at all until an individual hasbeen disabled for at least 6 months. Roughly 60% ofSocial Security Disability applications are denied. In lightof that, if you can afford the premium, I wouldrecommend that you get a benefit period longer than 6months.

Major Medical Health Insurance

This type of insurance is what the politicians refer to as “Health Insurance.” It pays most of your medical bills when you are sick or injured. It is the most comprehensive of all insurance plans. It is also the most complex of all insurance plans. In order to avoid surprises, make certain that you have read and understand what your policy will and will not cover.

Young Single• Term Life Insurance = 1 x

annual salary or minimum face amount allowed by your insurance company.

• Disability Insurance = minimum 60% of monthly salary for 6 months.

• Major Medical Insurance = High Deductible Health Plan

Newlyweds

• Life Insurance = 3 x annual salary

• Disability Income = 60% of monthly income

• High Deductible Major Medical

Family With Juveniles• Term Life Insurance (Wage

Earner) = 20 x annual income

• Term Life Insurance (Homemaker) = enough to pay for final expenses & hire nanny until youngest child is able to be self-sufficient.

• Term Life Insurance (Children) = $10,000 Child Term Rider a.k.a. CTR

Family With Juveniles (continued)• Disability Income (on wage

earner only) = 6 month benefit @ 60% of monthly income at a minimum.

• Major Medical with a doctor’s office co-pay benefit.

• Critical Illness = Major Medical “Out of Pocket” level plus deductible at a minimum insurance if a parent had a parent or sibling with cancer, heart attack or stroke.

Long Term Care Insurance

Often abbreviated as LTCI, this type of insurance pays the expenses associated with a Home Health Aide, Assisted Living, Adult Day-Care or Nursing Home when the insured is unable to perform 2 of the standard 6 Activities of Daily Living without assistance or “stand-by” assistance. The other condition that triggers benefits is when there is evidence of “cognitive impairment” that would make the insured a danger to himself or others.

Empty Nesters (Age 50-59)• Term Life Insurance = Lower to

number of years to replace 60% of income until the surviving spouse can qualify for Social Security.

• Disability Insurance = 60% of monthly income for at least 6 months.

• Long Term Care Insurance = At a minimum get enough to pay for you to hire a home health aide today along with an inflation rider.

• Major Medical Insurance = High Deductible Health Plan

Empty Nesters Age 60-64• Replace Life Insurance with

Long Term Care Insurance.• Disability Insurance = 60% of

monthly income for 6 months until you are eligible for Social Security Retirement benefits.

• Major Medical Insurance = High Deductible Health Plan.

• Critical Illness = Your Major Medical plan’s maximum “Out-of-Pocket” expenses at a minimum.

Retiree (Age 65)

• Medicare A • Medicare B• Medicare D

(Prescription Drug Plan)• Medigap or• Medicare Advantage