Terms & Questions

The solvency of the Social Security fund has been a big topic in the media lately. In planning for retirement, we usually exclude the projected benefit due from Social Security in order to account for the possibility that the benefit may be different from what is reported on the annual statement received.

It's a good idea to begin researching long term care insurance policies in the early to mid 40's. A good place to start is your states Department of Insurance. Request a copy of the Shoppers Guide to Long Term Care Insurance to familiarize yourself with terms and features before requesting rate comparisons.

Once you've determined the amount of insurance that is necessary to achieve your goals, you should consider the length of time you need, the insurance in force, the amount of premium that you can afford, your current health status, smoking status etc. An option that you should keep in mind is that most term insurance policies will have a provision that allows you to convert your term policy to a permanent policy.

Every situation is different, but you should keep in mind your long term goals. It is very easy to get caught up in the negative sentiment that accompanies a down market, just the same as it is to get caught up in the euphoria that comes with a bull market, but you need to remember some of the fundamentals of investing. Consistent, periodic investing in a diversified portfolio will help you weather market volatility. In the long run you might be glad that you continued to invest while the prices were down.

Disability Income insurance is designed to partially replace the income of people who are unable to work because of sickness or accident. At all ages, the probability of becoming disabled for at least 90 consecutive days is far greater than the chance of dying. You can think of it as insurance for your paycheck. The current sources of disability income protection are: social insurance programs, employer provided benefits and individually purchased policies.