Category: Retirement

Life insurance is essential in safeguarding loved ones and establishing a secure financial future. A life insurance policy assures that an early death does not have a financial impact, resulting in a significant loss in quality of life when the deceased individual no longer contributes income or services to the home.

Buying a life insurance policy is a significant decision. Sadly, many people make mistakes. These mistakes could cost policies more or not give the right kind of protection.

Nobody wants to make a mistake while buying one of the essential financial products in their lives; therefore, it’s critical to avoid these five common mistakes.

1. Designating One’s Estate as The Beneficiary of One’s Life Insurance Policy.

 When a life insurance policy owner/insured selects their estate as the beneficiary, the life insurance proceeds are subject to probate at the time of death. If the policy owner dies in a state with an inheritance tax, the proceeds may be subject to the inheritance tax when they should not be.

Furthermore, identifying one’s estate as the beneficiary can result in creditors having complete access to the life insurance proceeds. This is true even though most states’ laws exempt life insurance proceeds owed to identified beneficiaries, such as a spouse, child, or sibling, from creditor claims.

2. Failure to Identify Contingent Beneficiaries

Suppose the owner of a life insurance policy has designated a single beneficiary, and this beneficiary predeceases the policy owner/insured. This will unnecessarily expose the estate to all the issues described in #1. The solution is to name contingent beneficiaries who will take over as primary beneficiaries if the specified beneficiary dies.

3. Not Reviewing the Policy At Least Once in Three Years

Most life insurance policyholders have specified beneficiaries, a former spouse, or other individuals the deceased policy owner/insured would have wanted to receive the life insurance proceeds. There have been cases of children born after purchasing a life insurance policy who were not specified as beneficiaries.

To avoid such incidents, the policy owner/insured should evaluate their life insurance policy regularly for the following items:

• Who are the stated beneficiaries, and are they still alive?
• Ensure that the life insurance policy beneficiaries receive the proceeds in the manner best suited to their requirements.

4. Purchasing the Incorrect Type of Life Insurance Coverage

 An individual purchases a short-term (less than 10 years) life insurance policy that will expire when the policy is most needed. If a life insurance policy does not pay out when needed, it’s not providing the “peace of mind” promised.

The solution is for a person looking to purchase a life insurance policy to consult with a knowledgeable life insurance professional to determine if the potential policy owner is applying for the appropriate type and amount of life insurance (term insurance or permanent insurance) based on their needs and circumstances. Suppose a person is considering replacing an existing life insurance policy. In that case, you should note that in recent years, new forms of life insurance plans have been available that were not previously attainable or considered. These plans may be more suitable for the policyholder’s current needs and circumstances than the policy owner’s current insurance policy.

5. The Face Amount of The Life Insurance Isn’t Enough to Meet the Financial Security Goals of The Policy Owner/Insured Family

The primary needs of a family are food, clothes, housing, and education. The parent who is the primary (and maybe the only) wage earner for the family must ensure that if they die and cannot provide for the family, they are insured for a sufficient amount of life insurance to satisfy all of the family’s future primary needs. The critical concern is thus: Will loved ones have enough finances to pay bills and costs after the primary income earner’s death?

You should do an income needs-based insurance study if you want a policy primarily to provide income protection for family members. A thorough insurance study of what a person has and what their family would require should they pass away is necessary to obtain the right amount of life insurance.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

The Office of Personnel Management (OPM) data shows that the retirement backlog has reached a new high of 36,603, which was last recorded in March 2013.

The current backlog of OPM retirements is 36,349. It has increased by 16% in 2022 and 48% since its low point of 24,619 in May 2021. Recently retired federal employees waiting for their claims to be processed did not expect to miss the days when the OPM retirement backlog was “only” 24,000 claims.

The number of retirement claims received by OPM’s retirement services office was higher than usual last month. The backlog grew because OPM received 10,042 new claims and only processed 9,117. It increased by nearly 3% at the end of February.

Despite fluctuations over the last five years, OPM’s retirement backlog has increased by 77% since March 2017.

How long does the OPM take to process a federal employee’s retirement claim?

The Office of Personnel Management (OPM) claims to process federal employee retirement applications in 60 days on its website. With such a large backlog, it’s understandable that some new federal retirees may have to wait longer.

This is an OPM website response to one of the frequently asked questions:

“Retirement Services makes every effort to process retirement claims within sixty days. However, if we require additional information from you or your previous employer, your claim may take longer to process. If your retirement claim, for example, has unique conditions, it may take longer than usual (e.g., applying a specific retirement law, evaluating a court order, etc.)

It may also take longer if we need to contact you to make a benefit election (such as a service credit deposit), if we need to contact your former employer for further information, or if a benefit from another agency, such as the Social Security Administration, affects your claim.”

What Can Federal Employees Do to Make the Retirement Application Process Go More Quickly?

According to OPM, the most straightforward approach to minimize delays is to submit your retirement application packet early and double-check that everything is in order. Another question from the OPM website:

“By submitting your application ahead of time and ensuring that your Official Personnel Folder (OPF) is complete, you can assist reduce processing delays. Your personnel and payroll offices will be able to finish their actions before your retirement date if you submit your documentation early.”

How to Avoid Common OPM Retirement Application Errors

Any errors on your OPM retirement application packet will only slow down the process further, so be sure you don’t make any.

Initial retirement cases completed in less than 60 days took an average of 44 days, while those completed in more than 60 days took 128 days.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Medicare Part A covers hospitalizations, surgeries, long-term care, and certain home care. Medicare Part B covers doctor visits, outpatient therapy, proactive therapies, and necessary hardware. As a result, it is essential to investigate any coverage gaps before deciding whether a Medicare beneficiary should include Medicare Advantage, which is Part C, or Medicare Part or Medicare insurance in their overall health care strategy.

What kinds of medical services do Medicare and Medicaid not pay for?

The following medical procedures are not included in the scope of coverage provided by Original Medicare.

• Prescribed medication
• Long-term care services
• Both taxes and co-pays are required
• The use of hearing devices
• Regular eye care
• Regular dental treatment, involving implants

Most prescribed drugs are not covered by Original Medicare; however, beneficiaries can address this coverage gap by enrolling in either Medicare Part D or Medicare Advantage during the yearly open enrollment season, which runs from October 15 through December 7.

There are even some exemptions to the exclusions.

In certain situations, Medicare Part B will pay for medications that are to be taken outside of the hospital.

The administration of medications that are supported by Medicare Part B normally takes place in an outpatient medical environment, such as a doctor’s office or hospital clinic.

Examples of such medications include those that are injected for osteoporosis and those that are prescribed to be used in conjunction with long-term medical devices.

Care for the Elderly

When it comes to out-of-pocket expenses, long-term care often accounts for the largest share.

The Original Medicare coverage does not extend to long stays in nursing homes or assisted living facilities, as well as visits to domestic care centers. Care that is highly technical and received in a skilled nursing facility is covered under Medicare Part A for up to 100 days throughout the beneficiary’s benefit term.

Medicare will pay for treatment in full if the patient has been an inpatient at a hospital for at least three days and if they are admitted to a facility typically within the first 30 days following being discharged from the hospital.

It is essential to bear in mind that Medicare Advantage does not cover expenses that relate to longer-term care, and it is critical to remember this fact.

In this scenario, purchasing private long-term care insurance is going to be your best bet.

The Story

However, beneficiaries are liable for deductibles and co-payments when they use Original Medicare. Original Medicare covers hospital stays, services provided by doctors, and outpatient care.

Beneficiaries are expected to pay $389 per day for prolonged hospital stays from days 61 through 90, and $778 for stays longer than 90 days. The Part A deductible is $1,556, and the total amount due for extended hospital stays is $778.

Beneficiaries need to keep in mind that there are “lifetime reserve days.” After the initial 90 days, Medicare will pay for an additional 60 days. When this threshold is reached, beneficiaries are responsible for the remaining costs associated with their hospital stay.

After meeting a threshold of $233, users of Medicare Part B who seek physician assistance, laboratory tests, and X-rays are responsible for paying 20 percent of the total cost.

If an individual does not have any other kind of coverage, a Medigap or Medicare Advantage plan might help to augment the expenditures. Original Medicare does not pay for hearing devices, regular eye care, or regular dental services.

This includes testing needed to use or fit assistive hearing aids, unless a physician comes to conduct a test in an urgent situation or to decide if a patient requires immediate hospital attention, including cases to identify light-headedness or nausea.

Because glasses and corrective lenses are not insured, the same rationale that pertains to eye care emergencies also applies to vision care.

To be insured for dental procedures like fillings and most surgical removals, you will need to buy separate dental insurance coverage.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Comparing Whole Life Insurance and Indexed Universal Life Insurance

Key Takeaways:

1. Whole Life Insurance offers stability and guaranteed growth, while IUL provides flexibility and the potential for market-linked cash value growth, allowing you to tailor your coverage to your financial objectives.
2. Consulting with a financial advisor or insurance specialist is essential to select the policy that best suits your needs, ensuring long-term financial security for you and your loved ones.

When it comes to life insurance, two common options that individuals consider are Whole Life Insurance and Indexed Universal Life Insurance (IUL). Both types of policies offer valuable benefits, but they operate differently and are suited to different financial goals and circumstances. In this comprehensive guide, we will compare Whole Life Insurance and IUL, highlighting their key features, benefits, and considerations to help you make an informed decision about which one aligns with your financial objectives.

Understanding Whole Life Insurance

Let’s start by exploring Whole Life Insurance and its core characteristics:

Whole Life Insurance is a form of permanent life insurance that provides lifelong coverage, meaning it remains in force for your entire life, as long as premiums are paid. Here are the fundamental features of Whole Life Insurance:

• Guaranteed Death Benefit: Whole Life policies offer a guaranteed death benefit, which is the amount paid to beneficiaries upon the policyholder’s passing. This death benefit remains level throughout the policy’s duration.
• Cash Value Component: A portion of your premium payments goes into a cash value account, which grows over time at a predetermined rate set by the insurance company. The cash value is accessible through policy loans and withdrawals.
• Fixed Premiums: Premiums for Whole Life Insurance are typically fixed and do not change over the life of the policy.

Now, let’s explore the basics of Indexed Universal Life Insurance (IUL):

IUL is also a form of permanent life insurance, but it offers more flexibility and market-linked growth potential. Here are the key features of IUL:

• Death Benefit: IUL provides a death benefit that is paid to beneficiaries upon the policyholder’s passing, similar to Whole Life Insurance.
• Cash Value Component: A portion of your premium payments goes into a cash value account, which has the potential to grow over time. The growth of the cash value is linked to the performance of one or more selected stock market indices, such as the S&P 500.
• Flexible Premiums: Unlike Whole Life Insurance, IUL policies often allow policyholders to adjust their premium payments within certain limits, offering flexibility based on financial circumstances.

Comparing Whole Life Insurance and IUL

Now that we’ve established the basics of both policies, let’s compare them across various factors:

1. Premiums

• Whole Life Insurance: Premiums are fixed and tend to be higher compared to IUL. This can be advantageous for individuals who prefer predictable premium payments.
• IUL: Premiums are flexible within certain limits. Policyholders can adjust premiums based on their financial situation, making it more adaptable to changing circumstances.

2. Cash Value Growth

• Whole Life Insurance: The cash value in Whole Life policies grows at a guaranteed rate set by the insurance company. While it offers stability, the growth may be lower compared to IUL.
• IUL: The cash value in IUL policies is tied to the performance of selected stock market indices. This offers the potential for higher growth, but it also comes with market risk. However, most IUL policies include a floor rate to protect against market downturns, ensuring that the cash value does not decrease due to poor index performance.

3. Death Benefit

• Whole Life Insurance: Whole Life policies provide a guaranteed death benefit that remains level throughout the policy’s duration.
• IUL: IUL policies offer a death benefit that can potentially increase over time, depending on the cash value growth linked to index performance. This can be advantageous for policyholders who want their death benefit to keep pace with inflation.

4. Access to Cash Value

• Whole Life Insurance: Policyholders can access the cash value through policy loans and withdrawals. Any unpaid loans will be deducted from the death benefit upon the policyholder’s passing.
• IUL: IUL policies also allow access to the cash value through loans and withdrawals, but the availability of funds may depend on the policy’s performance and the selected index.

5. Market Risk

• Whole Life Insurance: Whole Life policies do not expose the cash value to market risk. The growth rate is guaranteed by the insurance company.
• IUL: IUL policies have the potential for higher cash value growth, but they come with market risk. However, the inclusion of a floor rate helps protect against market downturns.

6. Flexibility

• Whole Life Insurance: Whole Life policies offer stability with fixed premiums and a guaranteed growth rate. They are less flexible in terms of premium adjustments.
• IUL: IUL policies provide flexibility with adjustable premiums and the potential for market-linked growth. This flexibility can be beneficial for policyholders who want to adapt their coverage to changing financial goals.

Choosing Between Whole Life Insurance and IUL

The choice between Whole Life Insurance and IUL ultimately depends on your individual financial objectives and risk tolerance. Here are some considerations to help you decide:

• Choose Whole Life Insurance If:
  • You prioritize stability and predictability in premium payments.
  • You are comfortable with lower but guaranteed cash value growth.
  • You do not want exposure to market risk.
• Choose IUL If:
  • You prefer flexibility in premium payments to adapt to changing financial circumstances.
  • You are willing to accept some market risk in exchange for the potential for higher cash value growth.
  • You want the opportunity for your death benefit to increase over time.

Conclusion

Both Whole Life Insurance and Indexed Universal Life Insurance (IUL) have their merits and are valuable financial tools. Your choice between the two should align with your unique financial goals and risk tolerance. Whole Life Insurance offers stability and guaranteed growth, while IUL provides flexibility and market-linked potential.

Before making a decision, it’s advisable to consult with a financial advisor or insurance specialist who can assess your individual circumstances and help you choose the policy that best suits your needs.

Ultimately, whether you opt for Whole Life Insurance or IUL, having life insurance in place is a crucial step in ensuring financial security and providing for your loved ones in the future.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

If your firm has dedicated time and resources to veteran recruitment or is stepping up these efforts, you also have to think of ways to invest in their success once they’ve been hired. Here are some top tips.

Benefits & Policies evaluation

Actions speak louder than words when developing a diverse, engaged workforce. You can take action by offering more tailored benefits to veterans and military-connected individuals. Group life and health insurance can enhance veterans’ government coverage. If you hire or recruit many veterans, you should provide them special perks personalized for their circumstances. Many of these options offer profitable rates, individual customer care, and financial education resources for military-connected employees.

Many industries now allow remote or hybrid work. Make sure military spouses and veterans have flexible work opportunities too. Providing a serving spouse job stability in the face of relocations or allowing a recently-separated veteran to find a permanent home while keeping employment at your company helps employees and lets your company retain top talent regardless of location and lifestyle.

Inform staff about affinity groups and EAPs. Many give veterans direct access to additional resources and incentives, such as mortgage recommendations, gym membership discounts, and physical and mental health help. Show your support by continuously connecting with affinity groups and making their resources available to veteran employees during onboarding and through internal communications.

Promote networking

Many veteran employees will be at a significant transition point in their lives and careers. Using existing talents and structures can make employees feel welcome and supported. If your company employs veterans or military-connected individuals, create a special employee resource group for them. That can help them find mentors, learn about corporate culture, and exchange experiences. Human resources and benefits decision-makers should stay in touch with this group. Their feedback on things like family leave, childcare, and training programs might help identify a need for changes. Your employees will appreciate you actively listening and changing corporate regulations.

Encourage learning

Your organization needs a thorough education program to encourage veteran hiring. Easy access to certificates, college credits, and tuition help is a win-win. They’ll gain skills and confidence in a new job setting or industry, making them an asset to your company. HR and mentors should ask veterans what they want from their careers in the future and support further education.

On-the-job training and development initiatives for new hires of various backgrounds are also important. If you have a network of veteran employees, foster mentorship through training and development initiatives. Discuss these programs with new and old employees. Their experience can guide training and development structure, goals, and metrics.

If you’re still hiring experienced employees, external organizations and affiliates can help. American Corporate Partners can help with mentoring, hiring, and onboarding as you build internal procedures.

Engage with other firms and service organizations

Even if your veteran hiring and engagement program is robust, consider chances to collaborate with local and national service organizations. Countless organizations range from general awareness to industry or issue-specific. Explore affiliate programs with these organizations to determine if they may offer mental health or financial advisory services to your veteran personnel.

Providing annual service hours is another approach to keep staff engaged and strengthen ties to local military and community organizations. That’s a win for local nonprofits, veteran employees wishing to continue active in service, and your company as it grows its role as a change-maker for staff and the community.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].