Whether you are looking for Life Insurance or Long term Care Insurance, we can help you get the coverage you need to prepare for the future – both expected and unexpected.
- Life Care Insurance Overview
- Life Insurance
- Long Term Care Insurance
- How Much Life Insurance is Enough
- Disability Insurance
Life Insurance Agent in Naples, Florida
Not all insurance agents are the same!
Choosing the right one can make a big difference – not just in price but also in service, proper need assessment, coverage and value.
Responsive Insurance is an independent insurance agency – meaning we do business with multiple insurance companies and compare protection and prices to find the best value for you. We’re not computers – we are real, live members of the Naples, Florida community, and we’re committed to being your advocate in times of need.
Our commitment is to serving you.
Responsive Insurance knows that in Southwest Florida there are as many unique insurance needs as we have neighbors who live here! To talk with one of our helpful team members about your insurance needs, contact us today.
• Life Insurance – Insurance protection for your family.
• Disability Insurance – to protect one of your most valuable assets – your income.
• Long term care insurance – to protect you and your family against unforeseen cost of care at home or elsewhere.
Having the right life insurance is pivotal in planning for the future of you and your loved ones. Life insurance can help you fulfill promises you’ve made your family when you are gone.
Don’t leave the future of you and your loved ones to chance. Responsive Insurance can help you find the right life insurance coverage for you, and help ensure that your policy continually meets your needs.
Life changes – so should your policy.
For each of our neighbors in Southwest Florida, the right life insurance will be unique for you and dependent on your personal and financial needs. As your life changes, your life insurance coverage may need to change in order to adapt to your current needs. Some life transformations that may require a policy “tune-up” and our help at Responsive Insurance include:
• You recently married or divorced
• You have a new child or grandchild
• You have opened or expanded a business
• Your health or your spouse’s health has deteriorated
• You are providing care or financial assistance to a parent
• Your child or grandchild requires assistance or long-term care
• You recently purchased a new home
• You are planning for a child or grandchild’s education
• You are concerned about retirement income
• You have refinanced your home mortgage in the past six months
• You or your spouse recently received an inheritance
• You have a sizable estate
Naples, Florida – What you need to know about life insurance
Responsive Insurance can help you select the best life insurance coverage for your needs. There are several different types of life insurance products available – the most common include:
Term Life Insurance
Term life insurance provides protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It’s generally less expensive than permanent (whole or universal) life insurance, and is available in varying time periods with fixed premiums from a one year (annual renewable term) to 30-year (level term) period or longer. Furthermore, term life insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance can also be part of a financial strategy in that many whole life insurance policies also build cash value over time.
Universal Life Insurance
Universal life is a form of permanent life insurance characterized by its flexible premiums, face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically. Depending on the policy, this interest rate can be guaranteed not to fall below a certain percentage. A variation of Universal Life Insurance that has been very popular in recent years is Indexed Universal Life insurance which is a Universal Life Insurance policy with interest crediting linked to the performance of a financial index like the S&P 500.
So what type of life insurance is best for you? Talk with the team at Responsive Insurance today at: 239-596-3177, and we can assist in identifying the best protection for you.
What are the advantages of life insurance?
Having the right life insurance is essential to planning for your present, and your future. Not only can life insurance provide assurance for your family after you are gone, many life insurance options offer other benefits you can take advantage of while you are living.
Advantages of the life insurance death benefit: When you pass away, your life insurance provides income tax-free money to your named beneficiary or beneficiaries that can be used to pay funeral expenses, debt, tuition, estate taxes or virtually any financial need. Your policy can help provide security for your business security as well, by enabling partners to buy out the interests of a deceased partner and prevent a forced liquidation.
Advantages of Living Benefits: The cash value growth of a permanent life insurance policy is tax-deferred, meaning you do not pay taxes on the growth of cash value, unless money is withdrawn. Loans or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses, such as college tuition or the down payment on a home.
The right life insurance coverage for each and every one of our neighbors in Naples, Florida is unique – talk with the Responsive Insurance team today to find out how to protect your family and your future with the right life insurance. Request a proposal here.
Do retirees need long-term care insurance?
This USA Today Article which appeared Sept. 10th, 2014 is a great resource and introduction to longer term care as you start to consider the factors, stats and your personal scenario.
“Health care costs are a big concern for people going into retirement, but the costs of long-term care can still be a shock.
Here are a few facts:
• 70% of people over 65 will need some form of long-term care at some point.
• For married couples, the chance that one spouse will need long-term care rises to 91%, says Byron Udell, CEO and founder of AccuQuote.com.
• People living alone are more likely to need some sort of home health care.
• Women outlive men, and thus, are more likely to live alone and need some sort of home health care.
So, while some financial planners previously were on the fence about long-term care insurance, they were still encouraging people to at least have a plan for long-term care.
“For Baby Boomers, long-term care insurance is a must,” says Manhattan attorney Ann-Margaret Carrozza. “We can no longer rely upon Medicaid to cover custodial type care. We see over the course of the past few years that eligibility for Medicaid has gotten tougher. In 2006 the so-called look-back period was extended from three years to five years,” she says. During that period, the government can check, or look back, to see if you have sheltered or given away assets — and if you have, it triggers a penalty period when you’re ineligible for government aid.
“There are now proposals in Congress to increase it to 10 years,” Carrozza says. And, she warns, Medicare only covers up to 100 days of rehabilitation following hospitalization. “Beyond that — nothing!”
The Employee Benefit Research Institute says the average retirement shortfall for Baby Boomers and Gen Xers is nearly $50,000. But that rises dramatically when expenses for home health care or nursing homes are added: for married households by $25,317; single males, an average increase of $32,433; and by $46,425 for single females.
No wonder so many people are worried that they won’t have enough money to even cover health care costs in retirement, let alone make it through retirement in the lifestyle they are accustomed to.
Let’s start with the basics. Long-term care is the service, both medical and non-medical, for people with a prolonged physical illness, chronic disease or disability. That care can be administered in-home, or in an institution like a nursing home or an assisted living facility.
“Custodial care will cost an average of $200 to $300 a day,” says Udell. “In-home care is somewhat less. In smaller (cities) it’s less. Most long-term claims are actually for in-home care.”
He said the cost depends on a lot of variables, whether the care is 24 hours a day, whether a caregiver comes and goes. He said a relative has a live-in caregiver who is paid $1,200 a week, plus meals.
Meanwhile, Genworth Life Insurance Co., a leading provider of long-term-care insurance, says the average length of a long-term care insurance claim is 2.9 years for a nursing facility and three to four years for all claims, including in-home care, based on reimbursement claims data from December 1974 through December 2013.
“I think the overarching theme for us is that you have to deal with that issue (long-term care), whether you have the money to self-fund or whether you buy long-term insurance,” says David Richmond, president of Richmond Brothers, a financial and retirement planning firm in Jackson, Mich.
“It’s a really big number,” Richmond says. “Retirees are getting an idea because they are dealing with their parents. That care is not cheap and insurance will not pay for it. Once you have exhausted your 100 days, Medicare will not pay. You must plan what you will do and what it will do to your portfolio and your family.”
That said, the question is: Is long-term care insurance the answer?
Financial advisers used to be mixed on the option. But they seem to be increasingly supportive of including the insurance as part of their financial plans.
“Long-term care stays on average two and a half years,” says Joe Heider, managing principal of the Ohio region for Rehmann Financial. “That can quickly eat into estates.”
Still, he says, long-term-care insurance is not for everyone. “Some people can’t afford it. They have to take risk they will not use it or that their assets will be spent down and they will be able to use a government-assistance program.”
John Sweeney, vice president at Fidelity Investments, says provisions for health care are essential in retirement plans Fidelity creates with its clients. “Long-term care is a very personal decision,” he says. “Many people we speak to who are going into retirement expect they will cover long-term care on their own.”
Sweeney says in a recent survey of children of retirees, 45% of the children expect to take care of their parents. “If you don’t have children, a long-term care plan might make sense,” he says.
“Long-term care provides the elderly with the opportunity to stay in their home, which is where they want to be,” says George Hunter III of Hunter Capital in Columbia, Md. “Long-term-care insurance allows for that. It gives them flexibility and gives them choices. It lets them keep their lifestyle the way they want it.”
“The biggest risk is if you are married,” says Richmond. “If one of you gets sick, it can be catastrophic to the family financially.” Say you need $4,000 a month to live on and you have a family member with early-onset dementia. It costs $5,000 a month for care. “All of a sudden, what you take out of your retirement savings just doubled. There are not many plans that you can double what you take out for three or four years and still be viable,” he says.
“Talk to your lawyer, accountant, financial adviser and say if the unthinkable happens to us, what will happen, and what will we do?” Richmond says. “You are talking about what could be hundreds of thousands of dollars.”
Several things were working against the broad appeal of long-term-care insurance over the years. One is the expense. Also, the industry saw some dramatic rate increases in the past several years. And several providers got out of the business entirely.
But the issue for many potential customers was that you could pay the premium for years, and never need it.
“Historically, the big turn-off with long-term-care insurance was that all premiums paid were lost in the event policy benefits were not used,” says Carrozza. “Now, we are seeing more flexible products built around a life insurance model.”
Steve Cain, principal and national sales leader of NFP Long Term Care in Los Angeles says the average annual premium for a traditional long term care policy is $2,332. But a growing trend is the single premium life insurance policy with a long-term-care rider.
That’s exactly what Udell says he and his wife have — on life insurance policies of $1 million. “If I don’t ever need it, my family gets the million,” he says.
Another benefit to this type of policy, he says, is the premiums can be guaranteed. Straight long-term care premiums don’t offer a guarantee against premium hikes.
“The big question is how do you pay for it?” Udell says. “If you had no money and have need, Medicaid will pay for it. But you have to be broke. If you have a lot of money you don’t need it. It’s the people in the middle, $100,000 to $1 million that have the issues. A few years (of long-term care) can wipe out entire savings and you have no legacy. Those people are willing to spend a few thousand a year (for the insurance).”
“We’ve had some kids say to parents, we know you are on a tight budget,” says Richmond. “If the premium is $3,000 a year, and there are three kids, each of us will pay $1,000 a year, rather than coming up with $30,000, or $40,000 or $50,000 (if long-term care is needed).”
“‘People say ‘I don’t know if I’ll need it, so I’ll just do nothing,” says Cain. “Unfortunately, that’s what a lot of Americans do, until it’s too late. That’s when you have kids chipping in and people blowing through their savings.’”
How Much Life Insurance is Enough?
Life insurance is a crucial step in planning for your future. Not only can life insurance provide assurance for your family if you are no longer around, there are life insurance policies that offer benefits while you are living.
How much life insurance is right for you in Florida?
Based in Naples, Florida, at Responsive Insurance, we understand the life insurance needs of our customers.
The necessity of life insurance depends on your own personal and financial needs. At Responsive Insurance we assist and help you determine the type and amount of life insurance that is appropriate for you and your family.
Generally, you should consider life insurance if:
• You have a spouse
• You have dependent children
• You have an aging parent or a physically challenged relative who depends on you for support
• Your retirement savings are not enough to insure your spouse’s future against a rising cost of living
• You have a sizable estate
• You own a business
Additional benefits of life insurance other than providing for your loved ones, in case something happens to you include:
• The cash value earned and borrowed from a permanent life insurance policy can be used to help with large expenses, such as a college education or down payment on a home.
• The growth of a cash-value policy is tax-deferred — you do not pay taxes on the cash value accumulation until you withdraw funds from the policy.
• Life insurance can be used to cover funeral expenses and pay estate taxes — consult your tax adviser in Naples, Florida for more information.
The right coverage for you in Florida is unique – talk to us today at: 239-596-3177, and find out how to protect your family and your future with the right life insurance.
Long Term Disability Insurance
Long Term Disability Insurance provides protection against unexpected illnesses or accidents that would result in your inability to earn an income and support yourself or your family. Most people purchase auto insurance, home insurance, boat insurance, etc… without giving it a second thought. But if you were to compare the cost of your home, auto, and other personal property, the total value of all those items wouldn’t come close to the total future expected earned income for most people.
Long term disability insurance can typically be selected for benefits periods from approximately 2 years all the way up to traditional retirement ages of 65 years or older. According to statistical data provided on the Council for Disability Awareness website www.disabilitycanhappen.org, a very high percentage of wage earners believe protecting their income is important, while a majority also consider their risk of disability to be far less than statistically documented. Take a look at these relevant stats (click here to view) and call us to discuss a proposal specific to your occupation class and income needs.