2019 – Life Happens

4 End-of-Life Documents and Why You Need Them?

by Marvin H. Feldman | December 10, 2019 | Financial Planning | 0 comments

Most of us aren’t keen to think about the end of life—especially our own. But discussing the need for and understanding end-of-life planning documents is important for all of us. So, what are these documents and why do you need them? Here’s a summary:

1. Durable power of attorney.

This appoints another person to transact business, legal and financial matters for you until you die.

Why do you need it? Lets say you are incapacitated by an accident or illness, it allows the person you’ve chosen to act for you—and quickly. That can help you avoid a lot of problems, including hard-to-get guardianship and conservatorship rights. (If you are unsure of what either of these two terms means, this article makes it clear.)

2. Appoint a health-care representative.

As with the first document, this allows someone to act on your behalf to make health-care decisions if you’re unable. It allows them to review health records, authorize admission to or discharge you from a hospital and make decisions about life-sustaining medical procedures.

Why do you need it? You’ll have peace of mind knowing that your wishes will be fulfilled as you intended, especially when it comes to life-sustaining medical procedures. It also helps avoid family arguments about who should have the final say.

3. Advance care directives or living will.

This puts in writing the decisions you have made about your health care—instructions, if you will, for your doctor—so that your wishes are followed if you are unable to articulate them.

Why do you need it? It ensures, for example, that you receive the treatment you’ve decided on beforehand if you are terminally ill or permanently unconscious. It helps make sure that the treatments you receive in a terminal or permanently unconscious situation are in keeping with your wishes and provides guidance to your health-care representative.

4. A will or revocable living trust.

This puts in writing who will inherit your assets when you die, and in what manner. These two documents can help eliminate, avoid or postpose taxes that are payable when you die. An attorney can help you decide which of these documents is better for you.

Why do you need these? If you do not have a will or a revocable living trust, basically the government will be able to decide how and to whom your assets are distributed, and it may not be to those you intended.

These legal documents require the guidance of a qualified legal advisor to insure they meet the requirements of your state of residency, and if you already have these but have moved to a new state, they should be reviewed to insure they comply with the laws of your state.

For Kids, Finances Need to Go Beyond Lemonade … to Marshmallows

by Faisa Stafford, LUTCF | November 19, 2019 | Financial Fitness | 0 comments

The summer lemonade stand is a rite of passage for all kids. It is usually the first time a child gets to create their own business. They learn about the hard work it involves but also learn of its rewards, monetary and other. For my two girls, it was a lemonade and Oreo cookie stand so that they could broaden their potential “target audience.” It was quite the learning experience for them. They quickly learned that the 11-year-old was best at drawing in the customers, while the 14-year-old had better serving and counting skills. I watched as my girls learned how to market themselves and the product, how to make their customers happy and then how to manage their earnings.

As a mom to two young girls, I believe that one way we as parents can prepare our kids for a better financial future is to teach them the fundamentals of finance. That is why I love Liz Frazier’s new book “Beyond Piggy Banks and Lemonade Stands.” It takes off from the basics of financial literacy we as parents impart to our kids and goes beyond that summer lemonade stand. What happens after your kids have made that $10 in coins and dollar bills? How do they budget? How much should be spent now, what should be saved for later and what is given to charity?

The Importance of Delayed Gratification

One consistent theme throughout Liz’s book is the idea of delayed gratification. In a time when everything we could want is just a click away, it is something we as parents should be teaching our kids. They are being bombarded with the idea that the newest trendy shoes or that new video game is just a drone’s delivery away. There doesn’t seem to be a reason to postpone buying it NOW. But that mentality is setting our kids up to fail financially.

In her book, Liz mentions a study Stanford University conducted with children. It was called the Marshmallow Test. The kids in the test were offered the choice between one marshmallow now or two marshmallows after waiting 15 minutes. Stanford then followed up with these same kids over the next 40 years and found that those children who were able to delay their gratification for bigger rewards (those two marshmallows), had attained greater success and better lives overall.

4 Tips for Applying for Life Insurance After a Breast Cancer Diagnosis

by Brian Greenberg | October 29, 2019 | Life Insurance | 0 comments

After feeling a lump in her breast earlier this year, my wife, Julie, who’s 35, had a 3-D mammogram. The radiologist reviewed the results with her and scheduled a biopsy for the following week. That’s when we found out that she had high-grade ductal carcinoma in situ with microinvasion. In layman’s terms, she had an aggressive form of cancer in the milk ducts that had just begun to spread. Since it was high-grade, there was a higher risk of it coming back after treatment.

This was difficult for us to hear. We have a young son and have been trying to get pregnant again. Clearly, we needed to step back and rethink our plans for the future. After talking with the surgeon and because there’s a family history of breast cancer, Julie decided to have a double mastectomy. It seemed the safest path forward.

As I write this post, she’s had the surgery, as well as the first of three reconstructive surgeries, and she’s undergoing a six-week course of radiation therapy. She won’t need chemo, thankfully. As challenging as all of this has been, we are very fortunate that we’ve both had life insurance for many years. While we are optimistic about the long-term outcome, we’re also thankful for the peace of mind this protection gives us.

How Breast Cancer Stages Affect Eligibility

Julie and I own a life insurance business, and every day we talk with people who are seeking coverage after receiving a cancer diagnosis. Unfortunately, most are considered “uninsurable,” at least for a few years.

In the case of breast cancer, if you have an early-stage form, you may have to wait anywhere from several months to 10 years after treatment before you can get life insurance. And then, you’ll most likely have to pay more for your coverage for a while. When you’ve been cancer-free for five years or so, you may qualify for a rate reduction.

If you have stage 3 breast cancer, it may be 10 to 15 years before you’re eligible for coverage, and it will cost you more for the duration of the policy. With stage 4 breast cancer, you’re limited to guaranteed issue insurance, which maxes out at $40,000, or final expense insurance.

Applying for Insurance After a Breast Cancer Diagnosis

The following tips can help you navigate getting life insurance coverage after breast cancer.

1. Realize that your case is unique. Not all insurance companies will look at you and your diagnosis the same way. Because breast cancer involves so many factors (e.g., tumor size, location, invasiveness), companies typically handle applications on a case-by-case basis.

2. Don’t go it alone. When you were diagnosed, you talked with experts to help you navigate your journey. Similarly, when it comes to getting life insurance after breast cancer, work with an agent who has experience in this area. It’s their job to find you the best coverage for the best price—one that fits your budget. And know that talking with an insurance agent is always free.

3. Give your pathology report to your agent. Insurance companies offer a range of prices for their policies. With your pathology report, an agent can send your case to several insurance companies at the same time and ask for a “quick quote” to see whether the company will offer insurance and, if so, at what (estimated) price.

4. Get as much coverage as you can afford. If it’s in your budget, get a term life insurance policy for the maximum amount the insurance company will offer you, and get a long-term policy of 20 or 30 years. Although it’s more expensive to get coverage when you’ve had breast cancer, it’ll be worth the investment to protect those you love and to have peace of mind while you’re raising a family.

Remember, if you’ve had breast cancer, talk with an insurance agent to see what your options are. A reputable, experienced agent should be able to help you. Julie and I hope that we’ve been of help as well.

Join Life Happens and NAIFA for a Special Chat During #LIAM19

by Christi Duncan | September 9, 2019 | Life Insurance | 0 comments

Join Life Happens and NAIFA representatives on Thursday, September 26th from 1:00-2:00pm EDT as we moderate a Twitter Chat focused on findings from the 2019 Insurance Barometer Study. There will be plenty of activity from the media, insurance companies, agents and consumers. We hope this chat helps promote life insurance awareness among the public and allows agents and companies to discuss important industry issues, best practices and solutions for ways to improve.

@LifeHappens and @NAIFA representatives will moderate and drive the discussion using the questions belowfrom the 2019 Insurance Barometer Study. Pass your answers through company compliance if needed. Remember, you’ll have to use the #LIAM19Chats hashtag in each tweet.

Q1: We found only 20% of Americans say they’re knowledgeable about life insurance. Do you think that number is low? What do you think can be done to raise it? #LIAM19chats

Q2: According to the 2019 Insurance Barometer Study, affording a comfortable retirement remains people’s top financial concern. How can life insurance help with this concern? #LIAM19chats

Q3: 85 million Americans use social media to learn more about agents and advisors. How do you use social media to build relationships and spread awareness about life insurance? #LIAM19chats

Q4: More than half of Americans have strong misperceptions on the cost of life insurance coverage. Why do you think this is? #LIAM19chats

Q5: #LIAM19 is coming to a close. How did you raise awareness around life insurance this month? Show us if you can! #LIAM19Chats

5 Questions Expecting Moms Have About Life Insurance

by Marvin H. Feldman | August 23, 2019 | Life Insurance | 0 comments

If you are expecting a child and are considering life insurance, the first thing I have to say is—smart move! But if this is your first time looking for coverage, you may have questions. Here are some typical ones I’ve heard over the years:

1. What type of life insurance coverage is best for new parents—term or permanent?

Before figuring out what kind of coverage you need, you first have to understand how much death benefit you need to protect your family. You can do an easy calculation online to get a working idea of how much you may need with this Life Happens Life Insurance Needs Calculator.

Then you can move on to what kind of coverage—term or permanent—meets your needs. An advantage of term life insurance is that it costs less than permanent, at least initially. This makes it affordable for young families that may not have a lot of disposable income, but have a large need for coverage. Permanent insurance provides both lifelong coverage and a cash accumulation feature, which can be a valuable source of money that you can tap in the future.

Often, the best solution can be a combination of term and permanent life insurance. The term policy can give you extra coverage during the years when the children are at home, with the permanent policy offering lifelong coverage.

While a stay-at-home mom isn’t compensated for her work … it would be expensive to replace all those things she does.

2. Should you consider different types of coverage if you are working mom versus a stay-at-home mom?

Both working and stay-at-home moms need protection because what they do for their families is so valuable. While a stay-at-home mom isn’t compensated for her work, if something were to happen to her, it would be expensive to replace all those things she does—from childcare to home care to ensuring the family gets where they need to go when they have to be there.

The difference between the two is that a working mother also contributes an income, which may be critical to the family financially. That means she needs to think about replacing that income when considering how much life insurance coverage she may need.

3. The company where I work offers life insurance, is that enough?

Group insurance is a great benefit to have, but it’s limited in a number of ways. First, the coverage is often a lump sum, such as $50,000, or it may be one to two times your salary. That may sound like a lot of money, but my question to you is: Honestly, how long would that money last? And what would happen to your family financially after that was gone?

Second, when you leave that job, you generally lose that coverage. If you don’t have an individual policy that you own, you’ll be leaving your family at risk. Think of how many times people change jobs, and you’ll quickly realize that group coverage, which is limited in scope and amount, is not a proper life insurance plan.

4. Are there any restrictions I have to consider now that I’m pregnant?

If it’s early in your pregnancy, and there are no medical complications, you should be able to get life insurance. If you’re farther along and there are medical issues, it may difficult to obtain. The life insurance company may want to wait until after your child is born. That’s why I advise those that are planning to have children to get the coverage as soon as possible.

A healthy 30-year-old woman could get a 20-year $250,000 term life insurance policy for about $13 a month.

5. What can I expect to pay for life insurance?

How much you pay for life insurance is based on a number of things but most importantly age and health. So, it depends on how old and how healthy you are! But here’s an example: A healthy 30-year-old woman could get $250,000 in life insurance coverage (for a 20-year level term policy for a nonsmoker) for about $13 a month. That’s certainly a lot of peace of mind for $13.

And don’t forget about your spouse or partner. The two of you could get $500,000 of combined coverage (using the example of two 30-year-olds that each get a $250,000 20-year level term policy) for right around $26 a month.

And my last piece of advice: talking with a life insurance agent at this stage can be very valuable. They can do a needs assessment and come up with the right type and amount of life insurance that works for your family budget. And what many people don’t realize is that an agent will sit down and offer this advice free of charge, with no strings attached. If you’d like help finding a life insurance professional, you can start here.

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