There are several different
areas of insurance planning. It
is important that you address
each area of insurance carefully
and make sure you are protected
100%. Never leave any gaps!
Listed below are the areas of
Insurance Planning that the
Kovacs Financial Group
specializes in.
Life Insurance
Life insurance may be divided
into two basic classes –
Temporary and Permanent.
Temporary insurance, better
known as “term insurance” was
designed to be temporary and
solve your insurance needs for a
certain period of time. With
term insurance you can buy
policies that will last anywhere
from 1yr, 5yrs, 10yrs, 15yrs,
20yrs, 25yrs and 30yrs. In
exchange for a minimal premium,
you can purchase a term life
policy to fit your insurance
need. This policy will be
strictly focused on protection
only. You will not have any type
of cash value and your coverage
will be temporary. Permanent
Insurance was designed to last
your whole life. Thus the name
“Whole Life” insurance was born.
The benefits of permanent
insurance are much greater than
term insurance. These benefits
include an increasing death
benefit, cash value
accumulation, tax deferred
growth of your cash value and
the ability to withdraw the cash
at anytime from your policy
tax-free. There is a significant
difference between the premiums
of temporary and permanent
insurance. When it comes to life
insurance, we feel you get what
you pay for and the higher
premiums are justified by the
extra benefits. Your permanent
insurance policy will last you
your whole life as long as you
continue to make your premium
payments.
Disability Insurance
Disability insurance is one of
the most important types of
insurance that a person should
have . One's most valuable asset
is their ability to earn an
income and many people fail to
realize just how important it is
to insure their income. To show
you how important disability
income insurance is, here is a
statistical quote from an
article in the New York Times:
"Approximately 30% of all
people age 35 to 65 will suffer
a disability for at least 90
days, and about one in seven can
expect to become disabled for
five years or more."
A question we always ask our
clients and a question you
should ask yourself is this:
What would happen if I were to
become sick or hurt and I
couldn't
work (unable to earn an income)?
If your answer is anything but
“I would be just fine”, you need
disability income insurance.
Disability Insurance will
generally replace 60-66% of your
annual income. These benefits
are payable to you if you are
sick, hurt, can’t work and are
under the care of a physician.
There is a waiting period that
applies to long term disability
policies. The most common
waiting period chosen is 90
days. This means you must be
disabled for 90 days before
benefits become payable.
Disability income insurance
policies can be customized with
many different riders adding
additional benefits such as
residual disability,
non-cancellable, guaranteed
renewable, own occupation, cost
of living adjustment,
catastrophic disability and
social insurance riders. Your
premium you will pay is based on
your age, your gender, the type
of work you perform on a regular
basis and your personal medical
history. The most important part
of a disability income insurance
policy is the definition of
disability. Many carriers have
similar yet different
definitions of disability. For
example here is a definition of
disability:
You are totally disabled if, due
to injury or sickness, you are:
1. unable to perform the
substantial and material duties
of your regular occupation;
2. not engaged in any other
gainful occupation; and
3. under the care of a
physician. The physician's care
requirement will be waived if
further care would be of no
benefit to you. Your regular
occupation is your occupation at
the time your disability begins.
If you have limited your practice to a professionally recognized specialty
in medicine or law, the
specialty will be deemed to be
your regular occupation.
Health Insurance
With the rising costs of medical
care these days, it is extremely
important to have a health
insurance plan that will fit
your needs. Health insurance
plans can be customized in many
different ways. If you are just
looking for an individual health
insurance policy you can choose
from a variety of individual
health insurance plans offered
by the major carriers intended
for people who are not offered
health insurance through their
employer. If your employer
offers health insurance you may
be able to choose and customize
your plan any way you like and
have your premium offset by
10-100%. Legally employers must
pay 10% of an employees medical
coverage while many companies
pay 50-100% of the premium. With
an individual health insurance
policy, you are on your own with
the premiums. Many of the major
health insurance carriers offer
similar insurance plans. These
plan types Listed below are the
most common:
1. HMO – Health Maintenance
Organization
2. POS – Point of Service Plan
3. PPO – Preferred Provider
Organization
4. HSA – Health Savings Account
5. HRA – Health Reimbursement
Account
Give us a call today at
732.349.5353 or request a quote to create
or review your own Insurance
Plan today!
