tag:blogger.com,1999:blog-8395930796610465782024-02-21T09:28:14.723-05:00North Carolina Life, Disability, Long-Term Care Insurance amp; BlogAarow Financial Group is your source for Life, Long Term Care & Disability Insurance Planning in NC.Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.comBlogger48125tag:blogger.com,1999:blog-839593079661046578.post-9393041646733247282012-12-23T09:38:00.001-05:002012-12-23T09:39:37.486-05:00Term Conversion VideoWhat is a term conversion? Check out this informative video<br />
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<iframe allowfullscreen="allowfullscreen" frameborder="0" height="315" src="http://www.youtube.com/embed/ukkwr8u0nbk" width="420"></iframe><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-87441801442568722122012-07-24T19:53:00.003-04:002012-07-30T10:11:06.981-04:00Charitable Gift AnnuityA charitable gift annuity is a contract between a donor (the annuitant) and an organization. A charitable annuity is set up for two reasons: one, to provide a retirement income for the donor and two, to provide a charitable gift to the organization after the death of the donor. The organization can be a number of charitable causes. They are commonly used to donate to universities, churches and even organizations such as the Red Cross.<br />
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A charitable gift annuity will usually guarantee a retirement income stream for a certain period of time (or lifetime) based on the amount of assets that are deposited into the annuity. The issuing organization of the annuity usually uses standards set forth by the <a href="http://www.acga-web.org/" target="_blank">American Council on Gift Annuities</a> to write their annuity policies; and insure that the charitable gift annuities are being set up properly from an actuarial standpoint. This helps protect both the organization and the donor.<br />
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The deposit into a charitable gift annuity can be cash, securities, land or other forms of assets with real value. The charity will remain in control of the assets indefinitely. Charitable gift annuities are regulated by the individual states and the issuing charity must prove to that state that the gift annuities that it is issuing are meeting that states guidelines for actuarial standards. (Again, <a href="http://www.acga-web.org/index.php?option=com_content&view=article&id=47&Itemid=193" target="_blank">ACGA</a> helps guide these charities in this area.) Lastly, the charities must keep a close ongoing valuation of its asset's value to insure that it is paying out the correct amount based on actual value of the assets not the "book value". If you have any more questions on Charitable Gift Annuities, especially in North Carolina feel free to<a href="http://www.aarowfinancial.com/contact-us.html" target="_blank"> contact us</a> for a free phone, email or face to face consultation.<div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-86717903619756857132012-07-10T17:15:00.000-04:002012-07-10T17:15:45.137-04:00What is a 1035 Exchange?What is a 1035 exchange?<br />
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Disclaimer: This post will describe what a 1035 exchange is as we have learned it in the field by performing hundreds of exchanges. Tax laws constantly change, this will give you a general idea of what a 1035 exchange is and that is all it is designed to do. Please check with your company or tax professional to confirm any of this information.<br />
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A 1035 exchange as it is known in the insurance industry is IRS tax code that allows for money to be moved from like life insurance policies to to other like life insurance policies or from like life insurance policies to like annuities under tax code number 1035. By like policies I am referring to the fact that the life policies that participate in the exchange must be similar. For example, you cannot move money from a <a href="http://aarowfinancial.blogspot.com/2012/06/second-to-die-survivor-insurance.html" target="_blank">survivor or second to die life policy </a>to a single life policy or vice versa. (Same goes for single life annuities and joint annuities.) You cannot exchange money from an annuity to a life insurance policy. You can however move money under this code from a life to annuity policy, and you can also exchange value from annuity to annuity. Also, the <a href="http://www.aarowfinancial.com/pension-protection-act-of-2010.html" target="_blank">Pension Protection Act </a>, which was revised January of 2010 allows for exchange from current annuities and life policies to new annuities and life policies with long term care payout benefits.<br />
A 1035 exchange is useful to avoid a taxable event in surrendering or exchanging insurance contracts. If you have growth in your life insurance or annuity policy, meaning more money than your "basis" or what you have paid in, then the growth of that policy is considered a taxable distribution if taken via surrender or withdrawal. This tax can be avoided if a 1035 exchange is properly executed.<br />
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Ok, I hope that is clear and I tried to put it in layman's term as best I could. Below, I will post verbatim the tax code from the IRS. If you have any questions <a href="http://www.aarowfinancial.com/contact-us.html" target="_blank">contact me</a> and I will be glad to answer any questions.<br />
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<pre style="background-color: #f9f9f9; border: 1px dashed rgb(47, 111, 171); line-height: 1.1em; padding: 1em;"> Sec. 1035. Certain exchanges of insurance policies
(a) General rules
No gain or loss shall be recognized on the exchange of -
(1) a contract of life insurance for another contract of life
insurance or for an endowment or annuity contract or for a
qualified long-term care insurance contract;
(2) a contract of endowment insurance (A) for another contract
of endowment insurance which provides for regular payments
beginning at a date not later than the date payments would have
begun under the contract exchanged, or (B) for an annuity
contract, or (C) for a qualified long-term care insurance contract;
(3) an annuity contract for an annuity contract or for a
qualified long-term care insurance contract; or
(4) a qualified long-term care insurance contract for a
qualified long-term care insurance contract.
(b) Definitions
For the purpose of this section -
(1) Endowment contract
A contract of endowment insurance is a contract with an
insurance company which depends in part on the life expectancy of
the insured, but which may be payable in full in a single payment
during his life.
(2) Annuity contract
An annuity contract is a contract to which paragraph (1)
applies but which may be payable during the life of the annuitant
only in installments. For purposes of the preceding sentence, a
contract shall not fail to be treated as an annuity contract
solely because a qualified long-term care insurance contract
is a part of or a rider on such contract.
(3) Life insurance contract
A contract of life insurance is a contract to which paragraph
(1) applies but which is not ordinarily payable in full during
the life of the insured. For purposes of the preceding sentence,
a contract shall not fail to be treated as a life insurance
contract solely because a qualified long-term care insurance
contract is a part of or a rider on such contract.
(c) Exchanges involving foreign persons
To the extent provided in regulations, subsection (a) shall not
apply to any exchange having the effect of transferring property to
any person other than a United States person.
(d) Cross references
(1) For rules relating to recognition of gain or loss where
an exchange is not solely in kind, see subsections (b) and (c)
of section 1031.
(2) For rules relating to the basis of property acquired in
an exchange described in subsection (a), see subsection (d) of
section 1031.
</pre>
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<br /><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-49187250769618379832012-07-05T21:10:00.000-04:002012-07-05T21:23:59.240-04:00Medicare & MedicaidI talk to many people every week about long term care and where it fits into Medicare and Medicaid. These terms can be confusing. Both are government programs and they sound a lot alike. It was probably not the best idea to name them so similarly, but what is done is done. I will help try and shed some light on the roles of each program in a quick and easy post.<br />
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<span style="background-color: white;"><a href="http://www.medicare.gov/" target="_blank">Medicare</a> </span>was started in 1965 by the Federal Government to help US citizens or permanent residents over the age of 65 pay for the medical costs. Medicare is funded entirely by the Federal Government. If you or your spouse have been paying into Medicare for 10 years or more then you are eligible for Medicare at age 65. The idea of Medicare, a social insurance, is to spread the risk of medical costs across a society that is paying in. Medicare does not cover long term medical care needs, it is designed to cover restorative care or care that heals only. <a href="http://www.aarowfinancial.com/long-term-care-insurance.html" target="_blank">Long term care</a> is care that helps you maintain your every day needs or activities of daily living. We have six activities of daily living: eating, dressing, bathing, toileting, continence (other bathroom needs like shaving and nail clipping) and transfer (movement). Medicare is not designed to cover these costs.<br />
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<a href="http://www.medicaid.gov/" target="_blank">Medicaid</a> is also a social program that helps those US citizens and residents cover their medical needs. However, Medicaid is a means tested social program. This basically signifies that your income and assets need to be at certain levels (usually current poverty line or below) to qualify for the aid. Medicaid can cover children of low income parents and the disabled as well. Medicaid is jointly funded by the Federal and State Governments and managed by the individual states. Medicaid is designed to be social protection and covers more health care services than Medicare. Medicaid will cover long term care needs in the facilities and with providers that they have approved.<br />
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So next time you get a little confused on the difference between Medicare and Medicaid and its role with long term care, come back to this post, I hope it helps clear up the confusion. If you have any further questions regarding Medicare and Medicaid feel free to <a href="mailto:ryanaarow@gmail.com" target="_blank">contact me </a>. (Especially, if you have any questions on Medicaid in NC, my resident state.)<div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-420895501906067472012-06-27T14:14:00.002-04:002012-06-27T14:20:30.374-04:00Gift Tax - How Much is the Estate Tax?<span style="background-color: white;">(The information in this post is for educational purposes only. Legislation around this area is </span><span style="background-color: white;">constantly</span><span style="background-color: white;"> changing. The examples used are hypothetical and very basic for ease of understanding.)</span><br />
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<span style="background-color: white;">Many people constantly want to know How Much is the Estate Tax? At the time of writing this post the gift tax is allowable to be passed on from one generation to another is $5,000,000 per person or $10,000,000 per couple. (Here the gift tax is also known as the estate tax. For our purposes, the amount that a person may give to their heirs without a taxable consequence.) It is also important to note that the top gift tax rate is as low as it has ever been since 1931! The amount that you pass along valued above this $5 million (person) or $10 million (couple) is taxed at 35% if you pass away in 2012. If congress does not take any action by the end of 2012, the gift tax is set to reset back to $1 million per person or $2 million per couple and the top gift tax rate will jump up to 55%! </span></div>
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<span style="background-color: white;">So, long story short, 2012 is a great time to tackle your estate and gift planning needs. (With our country's $1.2 trillion dollar deficit, maybe the best time we will see in a very long time anyway.) This is the year you will be able to gift more and pay less now and at the time your estate passes on. This is also a great time to consider the power of life insurance in your gift planning needs. Especially the power of <a href="http://www.aarowfinancial.com/universal-life-insurance.html" target="_blank">Guaranteed Universal Life Insurance. </a>(GUL) Let' s assume that you have 2 children and as part of your estate plan you wish to gift them $100,000 each. You can put the $100,000 into a brokerage account in their name and hope for the best or dump it into a single premium GUL and have a tax free death benefit of $332,350 dollars PER CHILD GUARANTEED for your lifetime assuming you were a 60 year old non-smoking male with standard health! So the $200,000 that you plan to leave can immediately be worth almost $700,000 and payable in a lump sum tax free death benefit. There are no capital gains taxes due at any time on growth. </span></div>
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<span style="background-color: white;">Another important use for life insurance in your estate planning and gift tax needs is to have enough life insurance to cover the top gift tax rate. Lets assume that the estate tax reverts back to the 55% Federal tax rate on all estates valued over $1 million dollars per person. For easy math sake, lets use our life insurance figures above. You are a single person and your total estate is valued at $1.6 million dollars. (Real estate holdings, cash, retirement accounts, titled assets, jewelry, etc.) Remember, you able to pass along $1 million tax free under the gift tax rates and $600,000 of your estate would be taxed. At a 55% tax rate scheduled for 2013 and beyond that would be equal to $600,000 @ 55% or $330,000, due in Federal estate tax after your death. Keep in mind, this doesn't include your State's taxes! A good use for life insurance is to offset the taxes due by re-positioning $100,000 into a life insurance policy and having the $332,350 death benefit available in a tax free lump sum to pay the taxes. (In this example, the policy holder could also pay an ongoing annual premium of $6,282 for life, again assuming 60 yr old non-smoking male standard health). If this man had no life insurance in place, then $300,000 would be due in just Federal taxes after his death. This would leave his family with 2 options: #1 sell assets quickly at current market value or below, #2 use more liquid cash and/or retirement accounts to settle the bill. </span></div>
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<span style="background-color: white;">These are just a few basic ideas of the power of leveraging life insurance for your estate planning needs. Please see our website <a href="http://www.aaarowfinancial.com/">www.aaarowfinancial.com</a> or <a href="http://www.aarowfinancial.com/contact-us.html" target="_blank">contact us</a>. We are able to help you and answer your questions no matter what State you live in. </span></div>
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<span style="background-color: white;"><br /></span></div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-53165172700619597922012-06-25T18:43:00.000-04:002012-06-25T18:43:11.636-04:00What is Travel Insurance?What is Travel Insurance? Travel insurance can cover you from financial loss while abroad. This financial loss can include anything form trip cancellation to medical expenses, disability or even global life insurance coverage. At Aarow Financial Group, we have partnered with International Medical Group (IMG), to offer first class Travel Insurance. IMG is known for its comprehensive travel insurance products and service. They are the industry leader. No matter where you live in the United States, you can purchase International Travel Insurance, and no matter where you travel IMG offers some form of coverage for your travel insurance needs. Please see below for the IMG suite of products and purchase with confidence.<br />
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Welcome to IMG<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup>'s section of <b>Coverage without Boundaries</b><sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup>! We know that the reasons to travel abroad are many and varied – that’s why our products are too. Our full-service approach to providing international medical insurance products includes servicing vacationers, those working or living abroad for short or extended periods, people traveling frequently between countries, and those who maintain multiple countries of residence. To meet all of these needs, we have developed a comprehensive range of major medical, life, dental and disability products that can be tailored to meet your needs.</div>
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For your convenience and to assist you in determining which plan is right for you, simply use the scroll function to view each of the products or click on one of the specific product categories below to help narrow your search. You may also obtain more detailed plan information by clicking on the “Review Coverage” link associated with each product. Once you have determined which plan best fits your needs, click on the “Quote/Buy Insurance” link and you can complete the simple and easy-to-follow application.</div>
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<tr><td class="ins_nav" colspan="3" style="border-bottom-style: solid; border-bottom-width: 2px; border-top-style: solid; border-top-width: 2px; font-size: 10pt; text-align: center;"><a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#individual" style="color: #446d96; text-decoration: none;" title="Individuals & Family coverage for citizens traveling outside their Home country">Individual</a> | <a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#group" style="color: #446d96; text-decoration: none;" title="Group coverage for travelers on vacation or employees with locations around the world">Group</a> | <a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#student" style="color: #446d96; text-decoration: none;" title="Scholars, Faculty and Student coverage while Traveling, working or Studying outside their Home Country">Student</a> | <a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#tripcan" style="color: #446d96; text-decoration: none;" title="Individual & Family coverage for trip cancellation and interruption, travel delay, medical expenses and baggage ">Trip Cancellation</a> | <a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#specialty" style="color: #446d96; text-decoration: none;" title="Choose an Evacuation only plan, coverage for Adventure Sports or Medical coverage for Sea Captains and Crew">Specialty</a></td></tr>
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<tr><td colspan="3" style="font-size: 10pt;" valign="bottom"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
All coverages, benefits and premium amounts listed are in U.S. dollars.</div>
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<tr><td class="insurance_cat" colspan="3" style="background-color: #d4d4d4; font-size: 10pt;"><h3 style="color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14pt; font-weight: normal; line-height: 1.3; margin: 0px; padding: 5px 0px 5px 5px;">
<a href="" name="individual" style="color: #446d96;">Coverage for individuals & families worldwide</a></h3>
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<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot Travel Medical Insurance<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Individual & family plan</div>
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<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=3" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot Travel Medical Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_PatTravel.jpg" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top">The two Patriot<span style="font-family: arial;">®</span> travel plans offer a complete package of international benefits available 24 hours a day. Patriot International<span style="font-family: arial;">®</span>provides coverage for U.S citizens traveling outside the U.S with coverage for brief returns to the U.S, while Patriot America<span style="font-family: arial;">®</span>provides coverage for non-U.S citizens traveling outside their home country. Both plans are available for minimum of days up to a maximum of two years.</td></tr>
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<span class="linkspan" style="clear: both; height: 25px; width: auto;"><a href="https://www.imglobal.com/travelinsurance/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=PATAI,PATII,PATPI,PATPA" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Travel Medical Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/travelinsurance/plan_info/PATII/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review coverage for Patriot Travel Medical Insurance">Review Coverage</a></span></div>
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<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;"><div class="Product_titles" style="clear: both; font-size: 12pt; width: 843px;">
Global Medical Insurance<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup></div>
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<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Individual & family plan</div>
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<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=6" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Global Medical Insurance" border="0" height="87" src="https://www.imglobal.com/images/gmi150.jpg" style="border: 0px;" width="113" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top">Global Medical Insurance (GMI) is a revolutionary program that offers long-term flexible worldwide coverage to meet your individual or family needs, backed by the world-class services you expect. <br style="clear: both;" /><br style="clear: both;" />GMI allows you to custom build a plan that is specifically tailored for you. It offers the flexibility to select from an assortment of four unique benefit plan options - each with specialized coverages. To accommodate your financial means, you can customize your length and area of coverage as well as select from multiple deductibles and modes of payment. Its flexible underwriting options also provide IMG the ability consider coverage that may have been declined by other carriers. <br style="clear: both;" /><br style="clear: both;" />To maximize the outcome of your medical care, our on-site clinical staff is ready to assist you at a moment’s notice. You have the freedom to choose any provider for your services, or you can quickly and easily access providers in the extensive PPO network and the International Provider Access<sup style="font-size: 8pt;">SM</sup> (IPA). You also have direct access to our Medical Concierge, an unequalled service that provides you with personalized assistance in locating the best provider for your specific needs, while saving you on out-of-pocket and medical expenses.</td></tr>
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<div align="center">
<a href="https://www.imglobal.com/travelinsurance/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=GMIS2,GMIS3,GMIG2,GMIG3,GMGP2,GMGP3,GMIP2,GMIP3" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Global Medical Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com//travelinsurance/plan_info/GMIP3/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage">Review Coverage</a></div>
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<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot Platinum Travel Medical Insurance<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
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Individual & family plan</div>
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<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=198" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot Platinum Travel Medical Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_PatriotPlatinum.jpg" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Platinum<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup> provides first-class protection for the discerning international traveler who wants to obtain the maximum coverage available in a short-term travel medical product on the market today.</div>
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Patriot Platinum builds upon the Patriot Travel plan by providing up to $8,000,000 of coverage with enhanced benefits and services and our Global Concierge & Assistance Services<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup>.</div>
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There are two plans available: Patriot Platinum International<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup> provides coverage for U.S. citizens traveling outside the U.S. and Patriot Platinum America<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup> provides coverage for non-U.S. citizens traveling outside their home country. Coverage can be obtained from a minimum of five days up to three years.</div>
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<span class="linkspan" style="clear: both; height: 25px; width: auto;"><a href="https://www.imglobal.com/travelinsurance/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=PPLAI,PPLII" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Platinum Travel Medical Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/travelinsurance/plan_info/PPLII/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review coverage for Patriot Platinum Travel Medical Insurance">Review Coverage</a></span></div>
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</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot Green Travel Medical Insurance<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Individual & family plan</div>
</td></tr>
<tr><td style="font-size: 10pt;"> <a href="https://www.imglobal.com/travelinsurance/plan_info/PGRII/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review coverage for Patriot Travel Medical Insurance"><img alt="Patriot Green Travel Medical Insurance" border="0" height="67" src="https://www.imglobal.com/images/thumb_patriot_green.png" style="border: 0px;" width="107" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Green Travel Medical Insurance<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup> is designed for the environmentally conscious traveler and provides up to $2,000,000 of medical coverage and services. This plan provides the same comprehensive benefits as the Patriot Travel plan, but also includes eco-friendly benefits including providing for the purchase of carbon offsets, pays an additional $5,000 AD&D benefit to an environmentally conscious organization, and it is paperless.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Green International<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup> provides coverage for U.S. citizens traveling outside the U.S. and Patriot Green America<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup>provides coverage for non-U.S. citizens traveling outside their home country. Coverage can be obtained from a minimum of five days up to two years.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div align="center">
<span class="linkspan" style="clear: both; height: 25px; width: auto;"><a href="https://www.imglobal.com/applications/green?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Green Travel Medical Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/travelinsurance/plan_info/PGRII/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review coverage for Patriot Travel Medical Insurance">Review Coverage</a></span></div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot Executive<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Individual executive and family plan</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=5" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot Executive Travel Medical Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_PatriotExecutive.jpg" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Executive is designed for the executive that takes multiple trips throughout the year outside his or her home country. The plan provides coverage up to 45 days in length for each trip. It offers the ease and convenience of purchasing a single annual plan at an affordable premium.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Executive International provides coverage for U.S. executives traveling outside the U.S. and Patriot Executive America provides coverage for non-U.S. executives traveling outside their home country.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168" style="color: #446d96; text-decoration: none;" title="Buy Executive Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/travelinsurance/plan_info/PATEA/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage">Review Coverage</a></div>
</div>
</td></tr>
<tr><td class="top" colspan="3" style="font-size: 10pt; text-align: right;"><a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#top" style="color: #446d96; text-decoration: none;" title="Back to top of page">^back to top</a></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
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<tr><td class="insurance_cat" colspan="3" style="background-color: #d4d4d4; font-size: 10pt;"><h3 style="color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14pt; font-weight: normal; line-height: 1.3; margin: 0px; padding: 5px 0px 5px 5px;">
<a href="" name="group" style="color: #446d96;">Group coverage for employees around the world or short-term coverage for travelers outside their home country</a></h3>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"> </td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">GEO<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup> Group</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Employer sponsored group plan</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=20" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Global Employers Option Group Medical Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_geo_brochure.gif" style="border: 0px; margin-right: 5px;" width="113" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
GEO Group is one of the most comprehensive group hospital, surgical, medical and life insurance programs in the world. This program is designed for employers with employees who are either U.S. or Canadian citizens who reside abroad, or foreign nationals around the world. GEO Group assists employers to carve out their international employees to provide U.S.-style benefits and worldwide coverage. This program includes medical, dental, life and indemnity benefits for employees and their families.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="https://www.imglobal.com/pdf.cfm?a=60267&f=20" style="color: #446d96; text-decoration: none;" target="_blank" title="Request a Proposal for Employers Insurance">Request a Proposal for Employers Insurance</a></div>
</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot Group Travel Medical Insurance<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Group plan</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=4" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot Group Travel Medical Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_PatGroup0104.gif" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Group Travel Medical Insurance provides coverage for groups of five or more U.S. citizens and/or foreign nationals who need temporary medical insurance while traveling for business or pleasure anywhere outside their home country. It offers a 10% discount from Patriot Travel Medical Insurance and has one easy-to-use enrollment form.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
There are two Patriot Group Travel plans that provide up to $2,000,000 of medical coverage with a choice of deductibles and policy maximums. Patriot International Group provides coverage for U.S. citizens traveling outside the U.S. and Patriot America Group provides coverage for non-U.S. citizens traveling outside their home country. In addition to medical benefits, the plans include coverage for medical evacuation and repatriation.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
Coverage can be obtained from a minimum of five days up to a maximum of two years.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="https://www.imglobal.com/applications/pgt/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=PGTAI,PGTII&fuseAction" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Group Travel Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/pdf.cfm?a=60267&f=4" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage/Brochure">Review Coverage/Brochure</a></div>
</div>
</td></tr>
<tr><td class="top" colspan="3" style="font-size: 10pt; text-align: right;"><a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#top" style="color: #446d96; text-decoration: none;" title="Back to top of page">^back to top</a></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="insurance_cat" colspan="3" style="background-color: #d4d4d4; font-size: 10pt;"><h3 style="color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14pt; font-weight: normal; line-height: 1.3; margin: 0px; padding: 5px 0px 5px 5px;">
<a href="" name="student" style="color: #446d96;">Scholars, faculty and student coverage while traveling, working or studying outside their home country</a></h3>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"> </td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot Exchange Program<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Individual and family plan</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=163" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot Exchange Program" border="0" height="150" src="https://www.imglobal.com/images/thumb_PatriotExchange.jpg" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Exchange is designed for students studying abroad or participants of cultural exchange programs. Two plan options are available. The Basic Short-Term Travel Plan is an economical plan while the Standard Short-Term Travel Plan is designed to meet the U.S. J1 visa travel insurance requirements.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
Its flexible plan design also provides three areas of coverage: U.S. citizens worldwide except in the U.S., Non-U.S. citizens worldwide except in their home country and Europe to Europe.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
Plans are available in monthly increments and if a minimum of three months is purchased, coverage may be renewed (without break in coverage) for a total of four years.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="https://www.imglobal.com/applications/pep/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=EPBEI,EPBNI,EPBUI,EPSEI,EPSUI,EPSNI" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Student Exchange Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/pdf.cfm?a=60267&f=163" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage/Brochure">Review Coverage/Brochure</a></div>
</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot Group Exchange Program<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Group plan</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=135" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot Group Exchange Program" border="0" height="150" src="https://www.imglobal.com/images/thumb_EPGthumbnail.gif" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Group Exchange offers the same great benefits, options and renewability as the Patriot Exchange Program, and in addition to the Basic and Standard Short-Term plans, a Long-Term plan is available.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
The plan is available to groups of two or more students or participants of cultural exchange programs, offers a 10% discount from Patriot Exchange Program and has one easy-to-use enrollment form.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="https://www.imglobal.com/applications/epgt/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=EPBE,EPBWN,EPBWU,EPSE,EPSWN,EPSWU&fuseAction" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Student Group Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/pdf.cfm?a=60267&f=135" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage/Brochure">Review Coverage/Brochure</a></div>
</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Student Health Advantage<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Group and individual plan</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=169" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Student Health Advantage Insurance" border="0" height="150" src="https://www.imglobal.com/images/Thumbnail_StudentHealthAdvantage.jpg" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Student Health Advantage is designed for individuals or groups of two or more students or scholars participating in a sponsored study abroad program, and desire an annually renewable comprehensive medical plan. This plan meets student visa requirements, includes benefits for maternity after 10 months, mental health, organized sports and international emergency care. It also provides coverage for pre-existing conditions after 12 months of coverage.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<div style="line-height: 1.5; padding: 0.5em 0px;">
Sponsored groups of 2 or more</div>
<a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168" style="color: #446d96; text-decoration: none;" title="Quote Student Health Advantage Travel Medical Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/pdf.cfm?&a=60267&f=169" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage/Brochure">Review Coverage/Brochure</a><br style="clear: both;" /><br style="clear: both;" /><div style="line-height: 1.5; padding: 0.5em 0px;">
Individuals</div>
<a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168" style="color: #446d96; text-decoration: none;" title="Quote Student Health Advantage Travel Medical Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/travelinsurance/plan_info/SHAI/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage">Review Coverage</a>| <a href="https://www.imglobal.com/pdf.cfm?&a=60267&f=169" style="color: #446d96; text-decoration: none;" target="_blank" title="Download application for Student Health Advantage Travel Medical Insurance">Download application</a></div>
</div>
</td></tr>
<tr><td class="top" colspan="3" style="font-size: 10pt; text-align: right;"><a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#top" style="color: #446d96; text-decoration: none;" title="Back to top of page">^back to top</a></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="insurance_cat" colspan="3" style="background-color: #d4d4d4; font-size: 10pt;"><h3 style="color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14pt; font-weight: normal; line-height: 1.3; margin: 0px; padding: 5px 0px 5px 5px;">
<a href="" name="tripcan" style="color: #446d96;">Individual & family coverage for trip cancellation and interruption, travel delay, medical expenses and baggage</a></h3>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"> </td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot T.R.I.P.<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Travel protection for trips up to 30 days</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=89" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot T.R.I.P. Travel Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_patriot_trip.jpg" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot T.R.I.P. helps protect travelers who are unable to travel or are interrupted during their covered trip due to circumstances such as a sudden and unexpected illness or injury, death in the family, jury duty, job layoff, terrorism or the bankruptcy of the tour operator, cruise line or airline. Benefits also include coverage in the event of travel and baggage delay, lost baggage, emergency medical expenses, emergency medical evacuation and much more.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="https://www.imglobal.com/applications/pti/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=PTI" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Patriot Travel Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/pdf.cfm?a=60267&f=89" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage/Brochure">Review Coverage/Brochure</a></div>
</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot T.R.I.P.<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup> Elite</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
First class travel protection</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=102" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot T.R.I.P. Elite Travel Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_patriot_trip_elite.jpg" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
To provide superior protection for a picture perfect vacation, there is Patriot T.R.I.P. Elite, a premier travel insurance program. Patriot T.R.I.P. Elite offers a high level of benefits to travelers who need more coverage than provided by the Patriot T.R.I.P. program. The program has increased benefit amounts for emergency medical, emergency medical evacuation, travel delay, baggage, trip interruption and has a benefit for violent attacks.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="https://www.imglobal.com/applications/pte/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=PTEAI,PTEII" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Elite Travel Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/pdf.cfm?a=60267&f=102" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage/Brochure">Review Coverage/Brochure</a></div>
</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot T.R.I.P.<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup> Student</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Student travel insurance program</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=100" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot T.R.I.P. Student Travel Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_patriot_trip_student.jpg" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot T.R.I.P. Student is a "budget conscious" travel insurance program designed to provide important benefits to students for many of those unforeseen circumstances that may force the cancellation or interruption of a covered trip. This program also includes coverage for trip cancellation or interruption travel and baggage delay, lost or stolen baggage, emergency medical expenses and emergency medical evacuation.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="https://www.imglobal.com/applications/pts/index.cfm?hideproducer=0&IMGAC=60267&app_method=1&show=PTS" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy Student Travel Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/pdf.cfm?a=60267&f=100" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage/Brochure">Review Coverage/Brochure</a></div>
</div>
</td></tr>
<tr><td class="top" colspan="3" style="font-size: 10pt; text-align: right;"><a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168#top" style="color: #446d96; text-decoration: none;" title="Back to top of page">^back to top</a></td></tr>
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<tr><td class="insurance_cat" colspan="3" style="background-color: #d4d4d4; font-size: 10pt;"><h3 style="color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14pt; font-weight: normal; line-height: 1.3; margin: 0px; padding: 5px 0px 5px 5px;">
<a href="" name="specialty" style="color: #446d96;">Specialty coverage - plans for evacuation only, adventure sports or medical coverage for sea captains and crew</a></h3>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"> </td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Sky Rescue<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Emergency medical evacuation</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=128" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Sky Rescue Emergency Medical Evacuation Insurance" border="0" height="150" src="https://www.imglobal.com/images/Skyrescue.gif" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Sky Rescue is designed for those travelers who need to fill the gaps in the international medical insurance. It provides coverage for such benefits as emergency medical evacuation, repatriation, reunion and emergency assistance services that are not covered under most domestic or national plans.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
Coverage is available for individuals under the age of 65 traveling outside their home country. It can be purchased in three, six or 12 months increments and can be rewritten for succeeding or subsequent periods.</div>
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<tr><td colspan="3" style="font-size: 10pt;"><div class="linkdiv">
<div align="center">
<a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168" style="color: #446d96; text-decoration: none;" title="Buy Medical Evacuation Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/applications/evsr/plan_info/evsr/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage">Review Coverage</a></div>
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<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Patriot Adventure<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Adventure athletics and adventure insurance</div>
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<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=62" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Patriot Adventure Travel Medical Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_patriot_adventure.png" style="border: 0px;" width="65" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Patriot Adventure is designed for the adventurous international traveler who intends to participate in the thrill of adventure sports and realizes that their current medical plan does not cover certain hazardous sports and activities.</div>
<div style="line-height: 1.5; padding: 0.5em 0px;">
From skydiving to whitewater rafting, Patriot Adventure provides up to $50,000 of coverage and is available to those under the age of 50.</div>
</td></tr>
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<span class="linkspan" style="clear: both; height: 25px; width: auto;"><a href="http://www.weebly.com/weebly/apps/customHtml.php?ucfid=372317275386951168" style="color: #446d96; text-decoration: none;" title="Buy Adventure Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/Travelinsurance/plan_info/PATXA/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage">Review Coverage</a></span></div>
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<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">CrewSelect International<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Worldwide coverage for professional marine crew</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=236" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="CrewSelect Medical Insurance" border="0" height="76" src="https://www.imglobal.com/images/Thumb_CS_International.jpg" style="border: 0px;" width="113" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
International Medical Group<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup>, Inc. (IMG<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup>) offers CrewSelect International, a comprehensive and portable international medical insurance plan designed specifically for professional marine crew. CrewSelect International can help eliminate the obstacles of time, currency, and language when you are seeking medical treatment and need assistance and administration of your global health care benefits.</div>
</td></tr>
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<div style="line-height: 1.5; padding: 0.5em 0px;">
Groups</div>
<a href="http://www.imglobal.com/proposal/mcg/" style="color: #446d96; text-decoration: none;" target="_blank" title="Quote CrewSelect Group Medical Insurance">Quote Insurance</a><br style="clear: both;" /><br style="clear: both;" /><div style="line-height: 1.5; padding: 0.5em 0px;">
Individuals</div>
<a href="https://www.imglobal.com/applications/mcs/index.cfm?hideproducer=0&IMGAC=60267&show=MCS1,MCS2,MCS3,MCE1,MCE2,MCE3" style="color: #446d96; text-decoration: none;" target="_blank" title="Quote CrewSelect Medical Insurance">Quote/Buy Insurance</a> | <a href="https://www.imglobal.com/travelinsurance/plan_info/mcs1/benefits.cfm?hideproducer=0&IMGAC=60267" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage">Review Coverage</a>| <a href="https://www.imglobal.com/pdf.cfm?&a=60267&f=235" style="color: #446d96; text-decoration: none;" target="_blank" title="Download application for CrewSelect Medical Insurance">Download application</a><br style="clear: both;" /></div>
</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">International Marine Medical Insurance<sup style="font-size: 8pt;"><small style="font-size: 8pt;">SM</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Worldwide group coverage for professional marine crew</div>
</td></tr>
<tr><td style="font-size: 10pt;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=195" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="International Marine Medical Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_immi.jpg" style="border: 0px;" width="68" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
International medical insurance for marine crew requires provisions not met by many companies. International Marine Medical Insurance (IMMI) was designed specifically to provide comprehensive medical insurance to marine crew by offering continuous coverage worldwide. IMMI provides $1,000,000 of coverage per certificate period with a full range of benefits. Group members will be covered worldwide, including their country of citizenship, 24 hours a day.</div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div align="center">
<span class="linkspan" style="clear: both; height: 25px; width: auto;"><a href="https://www.imglobal.com/pdf.cfm?a=60267&f=196" style="color: #446d96; text-decoration: none;" target="_blank" title="Buy International Marine Medical Insurance">Request a Proposal</a> | <a href="https://www.imglobal.com/pdf.cfm?a=60267&f=195" style="color: #446d96; text-decoration: none;" target="_blank" title="Review Coverage/Brochure">Review Coverage/Brochure</a></span></div>
</td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><hr />
</td></tr>
<tr><td class="Product_titles" colspan="3" style="clear: both; font-size: 12pt; font-weight: bold; text-align: left; width: 843px;">Global Crew Medical Insurance<sup style="font-size: 8pt;"><small style="font-size: 8pt;">®</small></sup></td></tr>
<tr><td colspan="3" style="font-size: 10pt;"><div class="short_desc" style="clear: both; font-size: 10px; font-style: italic; padding-bottom: 16px; text-align: left; width: 843px;">
Worldwide coverage for professional marine captains & crew members</div>
</td></tr>
<tr><td style="font-size: 10pt;"> <a href="https://www.imglobal.com/pdf.cfm?a=60267&f=74" style="color: #446d96; text-decoration: none;" target="_blank" title="Download a Brochure and Application"><img alt="Global Crew Medical Insurance" border="0" height="150" src="https://www.imglobal.com/images/thumb_gcmi.gif" style="border: 0px;" width="100" /></a></td><td colspan="2" style="font-size: 10pt;" valign="top"><div style="line-height: 1.5; padding: 0.5em 0px;">
Global Crew Medical Insurance(GCMI) is a comprehensive and portable international medical insurance plan designed specifically for professional marine crew. GCMI can help eliminate the obstacles of time, currency, and language when you are seeking medical treatment and need assistance and administration of your global health care benefits. The plan provides $5,000,000 of lifetime coverage with a full range of benefits and offers two options: worldwide coverage and worldwide coverage excluding the U.S. and Canada. Both options provide coverage 24 hours a day, and you have the freedom to choose any doctor or hospital for treatment.</div>
</td></tr>
</tbody></table>
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<br /></div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-11144078862082555292012-06-20T16:26:00.002-04:002012-06-28T17:04:33.113-04:00How Should I Structure the Beneficiary on Life Insurance?This is often a question that I am asked when writing a life insurance <span style="background-color: white;">policy, and it is a good question. The answer depends on your situation. If you are using the insurance as coverage for business needs then you should probably specify the type of business coverage (key man or buy sell) and make the business owner and beneficiary. If you have a life insurance trust or any trust that will receive the death benefit from the life policy, then that trust should probably own the policy and be the beneficiary. However, the average person would usually want to make members of their immediate family the beneficiary on their life insurance policy and this is what I will address below. If you have any questions on business or trust structure for your life insurance in North Carolina, you can <a href="mailto:ryanaarow@gmail.com" target="_blank">contact us here</a>. I will be happy to give you a free consultation and we have a licensed North Carolina Attorney in our practice. </span><br />
<span style="background-color: white;"><br /></span><br />
<span style="background-color: white;">Now, if you have purchased a life insurance policy to protect your family and are looking to just make your family members beneficiaries, here are a few things to consider. </span><br />
<span style="background-color: white;"><br /></span><br />
<span style="background-color: white;">1. A life insurance policy in its simplest form is a contract between the policy owner, the insured (if different), the beneficiaries and the insurance company. Life insurance proceeds are designed to avoid the probate (court) process after death and go direct to the beneficiaries tax free. A beneficiary can be changed at any time with a simple form from the issuing company at the policy owner's </span><span style="background-color: white;">discretion. The policy holder is allowed to name as many beneficiaries as math will allow, however more and more companies are requiring beneficiaries be designated in whole percentage points of at least 1%. So if a policy owner wanted to name 100 people as beneficiary at 1% each, they could so, as long as they could prove "insurable interest" with all the beneficiaries. (family needs, business needs, charity, etc.)</span><br />
<span style="background-color: white;"><br /></span><br />
<span style="background-color: white;">2. You should always name both a primary and contingent beneficiary. This will insure that if something were to happen to say you and your primary beneficiary at the same time that there would be a back up plan for who gets the proceeds of the policy. The main issue you would want to try and avoid is the proceeds being put into the estate of the insured. This scenario can lock up the money for long periods of time, eat into the money in attorney fees and does not insure that the money will be distributed according to the wishes of the insured. (Basically, the probate court would decide on the distribution and in North Carolina we are a "per stirpes" state or "per bloodline", meaning the state decides based on your closest surviving family who would get the money and that might not always be what the insured wants.)</span><br />
<span style="background-color: white;"><br /></span><br />
<span style="background-color: white;">3. Uniform Simultaneous Death Act of 1940 - If both insured and primary beneficiary die at the same the time the act allows the court to decide who lived longer. If no other proof exists proving otherwise, the court can deem that the insured lived longer and death proceeds can go to the contingent beneficiary if one exists, if there isn't a contingent the death proceeds go to the estate of the insured.</span><br />
<span style="background-color: white;"><br /></span><br />
<span style="background-color: white;">4. Common Disaster Provision - a provision in a life insurance contract , usually put in by the policy owner, that states how long a primary beneficiary must survive past the insured in order to receive the death proceeds. This is usually 10-30 days, but may go out as long as 60 or 90 days, depending on the clause. This clause is designed to protect the death benefit in the case that there was an event that causes multiple deaths of parties to the contract within a short period of time. This clause helps determine if the primary or contingent beneficiary is to receive the payout. </span><br />
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5. Naming minor children might not be the best idea. Again, in NC and most other states, if a child beneficiary is under the age of 18 in NC (16 in some states, as much as 21 in some states), then the money can be put into a state directed trust and someone "per stirpes" named trustee. (again per bloodline) This trustee would then have access to this money to care for the children. (Again, this may not be in line with the wishes of the insured or children, and there is no guarantee how the money is spent on the children's care.) It is best to name an older person that you trust outside of your spouse as contingent beneficiary. It is also a great idea to have a Will that designates guardianship of your children in the event that you and your spouse both pass while the children are minors. If you live in NC and would like a free consultation on a <a href="http://www.aarowfinancial.com/will-north-carolina.html" target="_blank">North Carolina Will</a>, <a href="http://www.aarowfinancial.com/contact-us.html" target="_blank">contact us</a>, and we can set up a time for you to have a free consultation with <a href="http://www.aarowfinancial.com/contact-us.html" target="_blank">our Attorney</a>.<br />
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<br /><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-2529084700275931272012-06-19T08:52:00.001-04:002012-06-19T08:52:25.592-04:00Life Insurance with Long Term CareThere are many options when it comes to paying for your long term care needs. There are traditional long term care policies, hybrid or combination long term care policies that combine long term care and life insurance, long term care annuities (recently developed thanks to the <a href="http://www.aarowfinancial.com/pension-protection-act-of-2010.html" target="_blank">Pension Protection Act</a>), or lastly you could self insure and pay out pocket. This post is going to focus on life insurance with long term care benefits, also known in the industry as hybrid or combo policies.<br />
Basically, these policies are life insurance that has a long term care benefit attached with it. These polices are gaining popularity as they evolve because they are much more self completing plans. By self completing, I mean a plan that has a benefit no matter the outcome. If you need long term care, the benefit is there, if you don't use LTC and pass away the death benefit is there, or lastly if you use a combination of LTC for a short period and then pass the policy can pay out for both events.<br />
The 2 main types of Life Insurance with Long Term Care are life insurance polices with long term care riders and hybrid long term care life insurance policies.<br />
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1. - Life Insurance with Long Term Care Rider - Accelerates the death benefit of the life policy in the case of a long term care event. For example, a $250,000 death benefit on a life policy that will accelerate and pay out up to $5,000 a month for facility or home care until $250,000 is used or the person passes away, whichever comes first. If only $100,000 was used for long term care the policy has a residual death benefit of $150,000.<br />
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2. - Hybrid long term care / life insurance - <span style="background-color: white;"> </span><span style="background-color: white;">To put it in car terms the "chassis" of the policy is life insurance and the policy has a long term care benefit attached to it. These polices are different in that most do not allow you to pay ongoing premiums on a long term basis, such as a life pay scenario. These polices work best with a lump sum dump in or annual premium payments up to 10 years (10 pay) or less. The best way to explain is with an example. A 62 year old female, can deposit $100,000 into this type of policy and immediately have a life insurance benefit of $150,000 if she passes, or a long term care benefit of $500,000. The long term care benefit would pay her up to $7,000 a month for 6 years if she needed home care or facility care. These policies allow for easy access to the money deposited and have minimal to usually no fees for withdrawing the money or surrendering the policy if you have an emergency and need your money back. These are truly self completing plans, if you die, need long term care or just your money back its all there. </span><br />
<span style="background-color: white;"><br /></span><br />
<span style="background-color: white;">You can now fund both of these types of policies in a variety of ways: from cash value of other life insurance or annuity policies, CD rollovers, out of ordinary income, lump sum deposits from savings, IRA's or old 401K's.</span><br />
<span style="background-color: white;"><br /></span><br />
<span style="background-color: white;">Not many people are aware these policies exist, as I present them I get great reactions from clients to have these types of policies as an option. As you learn more about How to Pay for Long Term Care, keep these life insurance with long term care combo policies in mind, they offer a lot of value. No matter what State you live in, I would be happy to email you a free quote on any these polices, no sales pressure. Funding your long term care is an important need to fill as you age, the #1 cause of bankruptcy today are medical expenses. <a href="mailto:ryanaarow@gmail.com" target="_blank">Contact Me for a Free Quote or Any Questions.</a> My name is Ryan Thomas.</span><br />
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See our full website at <a href="http://www.aarowfinancial.com/">www.aarowfinancial.com</a><br />
<span style="background-color: white;"><br /></span><br />
<br /><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-34998258398274560612012-06-15T16:56:00.000-04:002012-06-19T10:02:30.110-04:00How do I get the Best Results on My Insurance Physical Exam?If you are considering the purchase of a fully underwritten life insurance policy, there are a few things you should know before taking your insurance physical exam. You want to get the best results possible because it can save you thousands of dollars over the life of your policy.<br />
I should start from the beginning...There are both fully underwritten life insurance and non-med exam life insurance policies. A fully underwritten policy requires you to go through a medical exam that is paid for by the insurance company that you are applying with. Fully underwritten policies will have much lower premiums and better provisions in the contract. The requirements of the exam will depend on the amount of life insurance that you are applying for and your age. Most commonly a physical exam consists of a height, weight, chest and waist measurements, blood pressure check, blood draw and urinalysis. The exam will also require the examiner to ask you medical questions, as well as, collect your doctor's and medication information. The insurance company reserves the right to order your doctor's records and most times they do this to have an idea of your medical background. There are insurance exam companies located all over the country. These companies will send an examiner to your home or office and usually give you the option to come to them at a local office if that is what you choose. Again, these exams are free to applicants and paid for by insurance companies. It usually takes 4-8 weeks after your physical exam to have a medical decision be made on your fully underwritten life policy.<br />
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A non-med life insurance policy just checks your <a href="http://www.mib.com/" target="_blank">MIB</a> (Medical Information Bureau of Records), scripts (open prescriptions) and reserve the right to order your credit file and driving records as well. (Same with fully underwritten insurance. However, companies do not usually order credit files unless you disclose something like a recent bankruptcy on the application. Driving records are ordered very regularly.) This <a href="http://www.mib.com/" target="_blank">MIB </a>is just an information sharing service fro Insurance Companies, you are entitled to have a copy of your file. A non-med policy will have higher premiums (because the life companies don't know as much about you, so it's higher risk) and less flexibility with things like<a href="http://www.aarowfinancial.com/term-life-insurance.html" target="_blank"> term conversions</a>.<br />
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Now that you know the general differences between both fully underwritten and non med life insurance, See below for ideas on ways to get the best results on your insurance physical for a fully underwritten policy. If you have any additional questions on how to get the best results on your insurance physical exam, please <a href="mailto:ryanaarow@gmail.com" target="_blank">contact me</a>, I would be happy to help with no sales pressure.<br />
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<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0.0001pt 31.5pt; text-indent: -0.25in;">
<b><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt; text-indent: -0.25in;">No alcohol 24-48 hours
before</span></b></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0.0001pt 31.5pt; text-indent: -0.25in;">
<b><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">At least 8 hour fast, best to take exam in morning before you eat breakfast, your blood pressure and blood work will be better then</span></b></div>
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<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0.0001pt 31.5pt; text-indent: -0.25in;">
<b><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">No strenuous exercise
24 hours before<o:p></o:p></span></b></div>
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<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0.0001pt 31.5pt; text-indent: -0.25in;">
<b><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">Take the weight part
with light to minimal clothing and no shoes (if your shoes weigh 2 lbs and that
two pounds puts you in another underwriting class, it could cost hundreds over
the life of policy.)<o:p></o:p></span></b></div>
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<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0.0001pt 31.5pt; text-indent: -0.25in;">
<b><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">Avoid salt 24 hours
before, it can raise BP <o:p></o:p></span></b></div>
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<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0.0001pt 31.5pt; text-indent: -0.25in;">
<b><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><span style="color: #222222; font-family: Arial, sans-serif; font-size: 10pt;">If you are taking a
normal regimen of medication, keep taking it, which will actually look better
to the company that your condition is
controlled with regular medication<o:p></o:p></span></b><br />
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<span style="color: #222222; font-family: Arial, sans-serif; font-size: x-small;"><b>7. If you are a tobacco user try and use those products as lightly as you can 24-48 hours before</b></span></div>
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<span style="color: #222222; font-family: Arial, sans-serif; font-size: x-small;"><br /></span></div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-51085125365113922362012-06-14T16:28:00.000-04:002012-06-15T11:51:25.850-04:00What do I Need to Know about Disability Insurance???<br />
I have been getting more and more questions lately about disability insurance (DI), so I thought I would put this post together to help you understand the most general things that you will need to before purchasing a disability policy.<br />
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1. There are 2 main types of disability policies. These policies are classified as occupational disability (own occupation) and non-occupational disability (any occupation). An occupational DI policy pays out an income stream if you can not perform the duties of YOUR occupation. These policies are much more comprehensive, they require more underwriting and the premiums are higher. Non-occupational disability coverage states that you must not be able to perform the duties of ANY occupation before it will pay out an income stream. (These two types of policies are also known as total disability (non-occupational) vs partial disability (occupational) coverage.) A non-occupational disability policy is usually less premium and easier to apply for. Many non-occupational disability policies are also accident only, meaning that if you need to miss work due to a disease or sickness that it is not covered. Check with your writing agent to make sure of the coverage you are considering.<br />
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2. The amount of coverage that you purchase cannot be 100% of your salary. This may sound crazy, but its true. There is a little thing called "moral hazard" that is designed to prevent people from carrying too much DI coverage. This is done in order to prevent policy holders from injuring themselves or faking a disability. The premise is that you are less likely do this if you cannot carry your full salary in DI income. So, insurance companies have worked with the Federal Government to set guidelines on the amount of DI coverage that you can purchase. The standard for most work place disability policies that I have seen, (group policies carried by employers), is to cover 60% of their employee's salaries. Most insurance companies will allow an individual to cover up to 80% of their income however, as long as your income is not too high. It is very common for someone to purchase an individual disability policy to cover the gap between a 60% employer plan and the remaining 20% that an insurance company will allow you to carry. (80% allowed minus the 60% employer coverage = 20%)<br />
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3. Long term vs short term disability - A long term disability policy is designed to pay for a period longer than six months. These policies have waiting periods of at least 30 days before they begin to pay out. Most group employer plans are long term disability plans. The most common employer plan that I have seen are a standard of a 90 day waiting period, then a 24 month pay out of 60% of the employee's salary.<br />
Short term disability is a plan that can begin payout immediately or with a small waiting period, and usually pays out for a period of 6 months or less to 1 year at the most. These short term plans tend to have smaller premiums and less underwriting requirements. If you have a long term disability plan then you might want to consider a short term disability plan to supplement that policy. This all should depend on how much savings you have in your emergency fund.<br />
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4. What effects costs in DI? Your age, sex, amount of coverage, lifestyle and type of occupation can all effect the premiums of a DI policy. A higher risk job will have higher premiums. Lastly, the longer that you can extend your waiting period, the lower your premiums will be. If you have a nice emergency fund and have 6 months of living expenses, then go a 6 month waiting period and keep your DI premiums lower. Insure yourself against a catastrophe not a paper cut!<br />
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5. Tax treatment - if you pay into your DI policy with after tax dollars then your disability pay out will be tax free. If you choose to try and write off your DI premiums, then the payout will be taxed, and taxed at a time when you need the highest income you can get. If you are an employer and have found this post searching for a group disability plan for your employees please keep this in mind. You might want to pay the premiums of your employees plan, but include those premiums in the employees taxable income, this way the pay outs will be non-taxable. If you are self employed you can include DI as a business expense, but make sure you include the premiums in your taxable employee income or the benefits or taxable. Please consult your tax or insurance professional on this I would be happy to answer any questions free of charge here. <a href="mailto:ryanaarow@gmail.com" target="_blank">Contact Me</a><br />
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We hope this information helps you in your disability insurance search. If you have any questions or would like a free no hassle quote please <a href="mailto:ryanaarow@gmail.com" target="_blank">contact u</a>s. No matter what state you live in we can email you some information.<br />
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Click here for the <a href="http://www.disabilitycanhappen.org/docs/five_questions.pdf" target="_blank">5 questions that every worker should ask about disability insurance.</a><br />
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<br /><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-64143297869689324072012-06-13T18:42:00.001-04:002012-07-24T19:23:53.445-04:00Second to Die, Survivor Insurance, Survivorship Life - A Great Way to Leverage Lower Premium PaymentsMore and more people are asking about what is called second to die, survivorship insurance or survivorship life. This is a life insurance contract or policy on two lives, that pays the death benefit after the death of the second insured. The two insured parties must have reasonable financial ties (most commonly husband and wife).<br />
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<span style="background-color: white; line-height: 19px; text-align: left;"><span style="font-family: Times, 'Times New Roman', serif;">These policies are excellent estate planning, preservation and creation tools because the cost of insurance is much lower than a policy on just one life. Also, if one spouse has had some health concerns they can still usually be one the insureds on the second to die policy. Many families that take out second to die policies are trying to leverage the smaller life insurance payments into larger payouts. This is a great way for parents to leave children an inheritance, cover lawyer & estate fees, and pay estate taxes. I have also seen second to die for charitable contributions with life insurance. Husbands and wives that have a strong tie with a charitable cause can again leverage their smaller payments into a much larger death benefit, and even be able to deduct premium payments from their taxes.</span></span> (If set up correctly. See our page on<a href="http://www.aarowfinancial.com/charitable-contributions-with-life-insurance.html" target="_blank"> Charitable Contributions with Life Insurance</a>.)<br />
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To sum up and give you an idea of the power of a second to die strategy, please see below:<br />
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A 55 year old non smoking man at standard non tobacco rates can purchase a $250,000 Guaranteed to Age 100 Universal Life Insurance policy for $3,800 annually.<br />
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A 55 year old man and 55 year old woman (married couple) at standard non tobacco rates can purchase a Guaranteed to age 100 Universal Life policy with a death benefit of $453,000 payable at the death of the second to die for the same $3,800 annually. (As you can see almost double the death benefit for the same premium!)<br />
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Please see our website for more information on <a href="http://www.aarowfinancial.com/universal-life-insurance.html" target="_blank">Universal Life Insurance</a>. I will be happy to email anyone a free quote on Second to Die, Survivorship Insurance, Survivorship life or any other form of life insurance free of charge and with no sales pressure. If you wish <a href="http://www.aarowfinancial.com/contact-us.html" target="_blank">Contact Us</a> here.<br />
<br /><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-17104807710013541802012-06-12T08:39:00.000-04:002012-06-18T18:06:59.837-04:00North Carolina Life InsuranceThe<a href="http://www.ncdoi.com/"> North Carolina Department of Insurance</a> (NCDOI) governs North Carolina Life Insurance and its industry. In NC we have available to us most life insurance products, the only exception is that the NCDOI is tough on guaranteed issue life insurance products. A guaranteed issue life insurance product is a policy that basically accepts everyone no matter their health conditions. These policies of course have very high premiums and also usually have a waiting period of at least 2-3 years before they pay out a full claim. We do have some final expense products available in NC, but not as many as I have found in neighboring states for example.<br />
NC's current Insurance Commissioner, Wayne Goodwin, has done an excellent job in office and I have been fortunate enough to meet him and see him speak to a group I was in. I could tell that he truly cared about his constituents and doing what was best for them was his top priority. The NCDOI oversees everything from Property Insurance, the Senior Health Insurance Information Plan or (SHIIP at www.ncshiip.com), all forms of life, health and accident insurances, to even bail bondsmen licenses. We are well protected in North Carolina.<br />
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As for North Carolina Life Insurance, the products available to us are put into 3 major categories.<br />
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1. Term Life Insurance<br />
2. Universal Life Insurance<br />
3. Whole Life Insurance<br />
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The first category is <a href="http://www.aarowfinancial.com/term-life-insurance.html" target="_blank">term life insurance</a>. A Term life insurance policy is designed to last for a specific duration or term period. The most common term periods are 10 - 30 years. Term is the least expensive of all life insurance products and is the most common insurance sold online today. A person could purchase much more coverage through a term policy for a much lower premium to cover the risk of death for a time period important to them. The most common situations that I see are the 20 - 30 years that children are young and still very much dependent on their parents and when someone has a mortgage. Lastly, there is also a <a href="http://www.aarowfinancial.com/return-of-premium-term-life-insurance.html" target="_blank">return of premium term life insurance</a> product that will return 100% of the premiums that you pay into the term policy at the end of the term period.<br />
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The next major category is <a href="http://www.aarowfinancial.com/universal-life-insurance.html" target="_blank">universal life insurance</a>, this category can include current assumption universal life, indexed universal life, and guaranteed universal life. A universal life policy or UL for short is designed to be a flexible premium contract and can build cash value. A UL is a form of permanent insurance and differs from whole life insurance in the flexibility of the policy. If your UL has built up sufficient cash value, then you may choose to let it pay its own premium's from its accumulated cash value, or you may choose to withdraw the premiums that you have paid into the policy. When a UL pays for itself, it does not loan against itself and a withdrawal is not a policy loan so neither option charges you an interest rate. You do have the option to take policy loans with a UL.<br />
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The last major category is <a href="http://www.aarowfinancial.com/whole-life-insurance.html" target="_blank">whole life insurance</a>. A whole life insurance policy is also designed to be permanent coverage and is the first form of life insurance to come into existence. A whole life policy has guaranteed premiums and a base interest rate. You can choose different payment schedules, single pay, 7 pay, 10 pay, 20 pay, pay to 65 and pay to maturity are all examples. If you have what is called a participating whole life policy, then the policy will usually pay what is called a dividend. A dividend is basically an annual return that you receive from the life insurance company based on the profitability of the company for that year. A dividend can be allocated in several ways. A dividend can accumulate in a dividend account for withdrawal or future payment of premiums, a dividend can lower your current premium or a dividend can purchase additional life insurance regardless of insurability. Generally, we recommend a Mutual Life Insurance Company for your whole life needs. A Mutual Life Insurance Company is owned by the policy holders and usually offers a better dividend scale.<br />
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There are many great North Carolina Life Insurance products available to us here in the Tar Heel State. For a free evaluation of your situation and free quotes for your North Carolina Life Insurance feel free to <a href="http://www.aarowfinancial.com/contact-us.html" target="_blank">contact me</a>. We represent all major life insurance carriers and our team has over 60 years of combined experience. We have the ability to show a multi-quote of top life insurance companies and we can shop your NC Life Insurance to find you the best rates and policy for you, no matter where you are in NC. If you wish we can even mail you all the necessary paperwork.<br />
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<br /><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-8851330996685189322012-05-29T22:04:00.000-04:002012-05-29T22:05:37.718-04:00How Much Life Insurance do I need?This is a great question, and I have heard several different versions
of the amount one should own. The truth is that life insurance
ownership is down, and less people buy it or continue to pay for it
during tough economic times. I do believe that if you fail to plan you
plan to fail, but at this point if you do not spend much time in this
area it fine. You should just buy $500,000 to $1,000,000 in term
coverage. (If you have children go $1 mil.) This can vary from person to
person, please do not read this and think that I am not doing my due
diligence, but the truth is some people are just scanning this
information and they like to make quick decisions. If that is you, buy
$500k to $1mil in coverage. Please keep in mind that life insurance
companies have different requirements on how much life insurance that
you can have in force based on your income. (Most carriers cap you out
at your annual income.) The federal Government recommends 20x your
annual income. (So, if you make $50,000 a year, they recommend that you
buy $1 million. $50,000 x 20 = $1,000,000.)<br />
If you would like to plan, I recommend using the online life insurance calculator at <a href="http://www.lifehappens.org/" target="_blank">www.lifehappens.org</a>.
They are a non-profit organization dedicated to help insurance
consumers make smart insurance decisions. I really enjoy their website
and as an insurance professional, I recommend them to many of my
clients. I hope this information helps you decide when you ask yourself, How much life insurance do I need?...<div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com1tag:blogger.com,1999:blog-839593079661046578.post-70930555252749320012012-05-01T12:57:00.002-04:002012-05-01T21:44:34.422-04:00What the heck is Cash First Long Term Care and why should I care?Cash first <a href="http://www.aarowfinancial.com/long-term-care-insurance.html">Long Term Care Insurance</a> pays just like traditional long term care coverage, as a reimbursement for facility care, home care, and/or adult care services, but with a big twist...This type of LTC policy will also give the policy holder a choice to take a cash first benefit, usually equal to 30-40% of the daily or monthly benefit at the time the cash benefit is turned on. Additionally, a good cash benefit policy will allow you to switch back and forth from facility care to cash payout from month to month as your needs change.<br />
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That was a lot of insurance jargon I just threw at you, let my simplify it. Long term care is usually paid out based on a monthly amount that will pay out for covered home care and/or facility care. (Sometimes this monthly pay out amount can be set to grow at 3 - 5% compound or simple interest, and the cash benefit will also be set to do the same.) So, at the time that you need your payout to cover LTC, you can choose to take your cash benefit instead of the monthly reimbursement amount. For easy math's sake, lets assume that your LTC policy was paying out $5,000 a month at the time you need the coverage, then 40% of $5,000 a month = $2,000 a month in cash direct deposited to your bank account instead of $5,000 reimbursed after you have paid for the care. This is a great benefit to have, especially if your LTC event starts out slowly, IE. 3 hours a day of home care at $20 an hour. You can take your cash and spend it any way that you like.<br />
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Also, your lifetime pool of money can last longer than planned if you are taking less money. If your LTC policy was set to payout $5,000 a month for 3 years then your policy would pay out a lifetime benefit of $180,000 or $5,000/month x 36 months). However, you could take $2,000 a month in cash for 7.5 years!<br />
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I like to think of the cash first benefit as a <a href="http://www.aarowfinancial.com/disability-insurance.html">disability insurance</a> / LTC care policy, it has the same premise, a cash payout due to accident or sickness that leaves you with incapacity. These new policies add a lot of value and as a LTC producer, I show these policies at EVERY long term care presentation. As a matter of fact, I have not sold a non cash benefit policy in over a year now. People see a lot of value in them. If you have any questions on cash first benefit Long Term Care coverage, please let me know. You can email me at ryanaarow@gmail.com. There are no strings attached and chances are I am not licensed in your state anyway. If you are in NC, SC, VA or GA, I can help write you policy, I will be glad to quote you and work with you pressure free through the mail on your own time. <a href="http://www.aarowfinancial.com/contact-us.html">All advice and quotes are free</a>.<div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-62286950927486779792012-03-21T21:42:00.012-04:002012-03-25T22:17:38.073-04:00Number of Uninsured in Regards to Life Insurance<span style="font-family:Georgia, serif;"><span style="font-size:100%;">Did you know that around 50% of the American population does not have life insurance? That is a high number of uninsured in such a developed country. Additionally 80% of the people that do have life insurance do not have enough coverage. So why is this is so? I have a few ideas:</span></span><div><br /><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; ">1. The economy has been in recession and very contracted over the past few years. Disposable income is way down and unemployment is very high</div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><br /></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; ">2. Another reason is that there are not enough good and caring insurance agents out there and most people just don't get approached about coverage.</div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><br /></div><div><span style="font-family:Georgia, serif;"><span style="font-size:100%;">3. Insurance is a back burner issue in our lives. I am in the industry and find myself guilty of the same thing, putting off my </span>insurance<span style="font-size:100%;"> needs because in my mind I am too busy today.</span></span></div><div><span style="font-family:Georgia, serif;"><span style="font-size:100%;"><br /></span></span></div><div><span style="font-family:Georgia, serif;"><span style="font-size:100%;">4. People assume that they cannot afford life insurance or that it is expensive. This is usually not the case, a good term life insurance policy can be very affordable and some coverage is </span>definitely <span style="font-size:100%;">better than none. </span></span></div><div><span style="font-family:Georgia, serif;"><span style="font-size:100%;"><br /></span></span></div><div><span style="font-family:Georgia, serif;"><span style="font-size:100%;">5. There are just not that many sources of good educational materials out there. The insurance industry needs better sources for consumers to go to get educated on the products and find a policy that is best for them. One good organization is the Life Foundation, a not for profit insurance education foundation, their website is <a href="http://www.lifehappens.org/">www.lifehappens.org.</a><br />(make sure you check out their life calculator that will help you determine how much life insurance you should purchase.)<br /></span></span></div><div><span style="font-family:Georgia, serif;"><br /></span></div><div><span style="font-family:Georgia, serif;">So ask yourself:</span></div><div><span style="font-family:Georgia, serif;"><br /></span></div><div><span style="font-family:Georgia, serif;">What would happen if I became disabled and could not work? How would I pay my bills. Does my employer offer <a href="http://www.aarowfinancial.com/disability-insurance.html">disability insurance</a>, if so how much will it pay and for how long?<br /></span></div><div><span style="font-family:Georgia, serif;"><br /></span></div><div><span style="font-family:Georgia, serif;">What would happen if I got cancer, a heart attack, multiple sclerosis or any other form of critical illness and get $25,000 hospital bill that was not covered by my health insurance? ( A very common scenario by the way, the #1 cause of foreclosures and bankruptcy filings in the US are from the same types of medical emergencies.)Do I or my employer have an<a href="http://www.aarowfinancial.com/disability-insurance.html"> critical illness insurance</a> or plan for this?<br /></span></div><div><span style="font-family:Georgia, serif;"><br /></span></div><div><span style="font-family:Georgia, serif;">What would happen if I could no longer perform the activities of daily life? If I could no longer move myself, dress, feed, bathe, or use the bathroom without assistance how would I pay for this care? Medicare and traditional health insurance does not cover non-healing care of this type. Medicaid will step in, but only after you spend down your savings and assets to levels below their qualification standard. So do I or my employer have a plan of <a href="http://www.aarowfinancial.com/long-term-care-insurance.html">long term care insurance</a>? </span></div><div><span style="font-family:Georgia, serif;"><br /></span></div><div><span style="font-family:Georgia, serif;">What would happen if I died? How would my loved ones be able to continue without me? Is my debt resolved? Is my lost income replaced? Will my family have to deal with estate tax? How much <a href="http://www.aarowfinancial.com/life-insurance.html">life insurance </a>do I have through work or on a personal basis?<br /><br />These are all scenarios that can we can protect ourselves and loved ones against. There is never a perfect time or economy to buy. Insurance can be inexpensive and tailored to your needs and budget. You can use our website as resource to help answer any of your questions. If that is not enough email me at ryanaarow@gmail.com. I will help you without obligation.<br /></span></div><div><span style="font-family:Georgia, serif;"><br /></span></div><div><span style="font-family:Georgia, serif;"><br /></span></div><div><span style="font-family:Georgia, serif;"><br /></span></div></div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-85916366252224359312011-08-15T10:24:00.002-04:002012-06-18T18:08:14.781-04:00New NC Long Term Care Partnership Program<div>
Below we have copied and pasted the Advisory Notice to Long Term Care Insurance Companies doing business in NC, regarding the new NC LTCP Program. Basically, the program will allow for a "resource disregard" for the insured only of a qualified LTCP policy. (No LTCP policies have been approved yet to the best of my knowledge in NC.) A resource disregard refers to the assets needed to qualify for Medicaid. This program will allow the insured to keep assets equivalent to the amount of benefits paid out by LTCP policy and still qualify for Medicaid assistance. There is also a resource disregard at estate recovery, meaning that there is allowance for assets to be passed at insured's death as well. We will keep you posted on the details and policies as they come out. </div>
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Advisory Notice</div>
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TO: Carriers Writing Long-Term Care Business</div>
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FROM: Life and Health Division</div>
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Date: February 24, 2011</div>
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RE: Notice relating to the Long-Term Care Partnership (LTCP) Program</div>
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Session Law 2010-68, i.e. Senate Bill 1193, authorized the establishment of the North Carolina LongTerm Care Partnership Program. Implementation of the North Carolina Long-Term Care Partnership </div>
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Program was approved January 6, 2011 by the Center for Medicare Services.</div>
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The legislation also defined the requirements that a long term care policy must contain in order to qualify </div>
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as a “Partnership” policy. These items are enumerated in the legislation available for viewing at the </div>
<div>
following web site: </div>
<div>
http://www.ncleg.net/gascripts/EnactedLegislation/ELLookUp.pl?Type=SL&Year=2010&Number=68</div>
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and related administrative code at: T11 NCAC 12.1001 through T11 NCAC 12.1030</div>
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The LTCP program provides incentives for the purchase of private long term care insurance. The LTCP </div>
<div>
program is an alliance between the North Carolina Division of Medical Assistance and the North Carolina </div>
<div>
Department of Insurance. It is a joint effort by State government and private industry to create an option </div>
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to help individuals plan to meet their future long term care needs without depleting all their resources to</div>
<div>
pay for care. An individual who purchases a qualified LTCP policy and has utilized benefits from the </div>
<div>
policy is allowed a special resource disregard when applying for long-term care Medicaid and also a </div>
<div>
resource protection at Medicaid estate recovery after death. </div>
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The amount of the resource disregard at Medicaid eligibility and Medicaid estate recovery resource </div>
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protection is equal to the amount of benefits paid out by the long term care partnership insurance policy </div>
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prior to the application for long-term care Medicaid. Once the resource disregard is established, the </div>
<div>
amount never changes. The resource disregard and resource protection only applies to the resources </div>
<div>
owned by the insured individual. It does not apply to any other person whose resources are included in </div>
<div>
the Medicaid eligibility determination, such as a spouse. </div>
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The marketing of qualified LTCP policies may not begin until March 7, 2011. Products that are designed </div>
<div>
to qualify as LTCP policies are subject to prior approval by the Department of Insurance. Prior to the </div>
<div>
marketing or solicitation of partnership policies, insurance companies must file with and obtain approval </div>
<div>
from the Department of Insurance of qualified product forms, rates, disclosure notices, applications, and </div>
<div>
advertising material.</div>
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Questions or concerns about this Advisory Memorandum may be directed to Ted Hamby, Deputy </div>
<div>
Commissioner, Life and Health Division Ted.Hamby@ncdoi.gov</div>
<div>
or Garlinda C. Taylor, Supervising Analyst at Garlinda.Taylor@ncdoi.gov or (919) 733-5060 ext. 347</div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-25809637671906835802011-06-29T13:46:00.001-04:002012-06-18T18:12:46.431-04:00"Whole Life Policy As Tax Advantage "<div>
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<div>
Published in InsuranceNewsNet by ProQuest Information and Learning Company </div>
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<br /></div>
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MAKING CENTS </div>
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<br /></div>
<div>
One of the most controversial topics in the financial planning world is the use of life insurance </div>
<div>
as a way to accumulate cash savings. Whole life insurance has been sold by agents for </div>
<div>
decades as the lowest long-term cost of insurance along with a forced savings account. The </div>
<div>
other side of this argument is to buy term insurance, and invest the difference. </div>
<div>
I once favored the "buy term and invest the difference" approach. But I have seen very few </div>
<div>
people who have stuck with the program and actually built that robust investment account. </div>
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Life insurance is primarily a tool to have a lump sum of cash at someone's death to provide for </div>
<div>
loved ones. For most, the death benefit is the primary motivator. But for many wealthy </div>
<div>
investors, accumulating cash inside a whole life policy has great appeal. </div>
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Wealthy, for purposes of this discussion, means that someone has more money than they </div>
<div>
need. Their basic needs, fun activities and legacy plans are amply funded by their nest egg and </div>
<div>
overall net worth. Their cash flow is stable and consistently well in excess of their cost of living. </div>
<div>
If this profile does not fit you, then using life insurance as a savings vehicle should be a very </div>
<div>
low priority for you. </div>
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Why is accumulating cash with life insurance so popular with the wealthy? First is the reality </div>
<div>
that their next dollar of savings is not likely ever to be needed. It is frequently excess savings </div>
<div>
that is likely to end up in the hands of the next generation. </div>
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Next is taxation. Traditional cash savings generate annual interest that is taxable. The interest </div>
<div>
accumulating inside a whole life insurance policy is not taxed while accumulating. If the owner </div>
<div>
of the contract dies and never gets to the cash accumulation, it all passes income-tax free to </div>
<div>
the next generation. </div>
<div>
Net returns are also a factor. Today's traditional savings vehicles have a very low rate of </div>
<div>
return. The cash buildup inside a whole life policy may be higher than what you may get from </div>
<div>
a CD. The potential returns from the life policy are twofold. One is the eventual death benefit, </div>
<div>
which a CD doesn't offer. The second is the actual interest rate on the cash value buildup. </div>
<div>
To properly take this approach, the owner should maximize contributions to the contract. Cash </div>
<div>
accumulations inside whole life policies were such a great deal for tax planning that the IRS </div>
<div>
actually limits just how much you can invest inside these contracts. To make it work best as an </div>
<div>
accumulation tool, you need to contribute right up to the limit imposed by Uncle Sam.</div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-49253738284478366562011-06-22T15:52:00.000-04:002012-06-18T18:15:43.859-04:00Attention Business Owners:Buy Sell Agreements<div>
White Paper by ING Life Companies: Intended for educational purposes only</div>
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<br /></div>
<div>
Buy-sell and business continuation agreements are important business planning</div>
<div>
documents. Because every business owner will voluntarily or involuntarily leave their</div>
<div>
business someday, these agreements are critical in determining both the ownership and</div>
<div>
decision-making structure of the business after an owner leaves. A smooth transition of</div>
<div>
business ownership is important for both the remaining owners and the departing owner</div>
<div>
and his/her family. Owners who don’t have a buy-sell plan in place before it is needed</div>
<div>
may create difficult problems for their families and co-owners.</div>
<div>
Just as it is important to have a binding agreement, it is equally important that funds are</div>
<div>
available to carry out the promises made in the agreement. Even a perfectly drafted</div>
<div>
buy-sell agreement can’t be carried out unless the buyer(s) have the money to follow</div>
<div>
through on his/her/their purchase obligation. Ownership transitions won’t happen</div>
<div>
without a concrete plan for financing the agreement. This publication will offer a new</div>
<div>
strategy for funding ownership transfers necessitated by an owner’s death.</div>
<div>
The Importance of Life Insurance</div>
<div>
Most buy-sell agreements include death as one of the triggering events. When this is the</div>
<div>
case, an owner’s death activates the legal obligations to buy and sell the deceased</div>
<div>
owner’s interest. Because death is nearly always a triggering event, life insurance policies</div>
<div>
are often used in the funding of the agreement. Some potential advantages life insurance</div>
<div>
provides include:</div>
<div>
(1) The policy death benefit is generally payable in full as soon as the policy has</div>
<div>
been issued and a premium has been paid, even if the insured owner dies</div>
<div>
shortly thereafter. </div>
<div>
(2) Policy death benefits may be paid relatively quickly after proof of death so the</div>
<div>
buyer will have some or all of the funds necessary for the purchase. </div>
<div>
(3) Policy death benefits are generally paid to the policy beneficiary income tax</div>
<div>
free under IRC Section 101.</div>
<div>
<br /></div>
<div>
Common Varieties of Buy-Sell Arrangements </div>
<div>
Different varieties of buy-sell arrangements have been developed over time. The two most common</div>
<div>
varieties are the entity purchase arrangement (in which the business buys back/redeems a departing</div>
<div>
owner’s interest) and the cross purchase arrangement (in which the remaining owners purchase their pro</div>
<div>
rata shares of the departing owner’s interest). Both arrangements have their respective potential</div>
<div>
advantages and disadvantages.</div>
<div>
Who Owns the Policies? </div>
<div>
Nearly all buy-sell agreements that use life insurance as a funding mechanism have one thing in</div>
<div>
common: The insured business owners do not own the life insurance policies that insure their</div>
<div>
lives. In an entity purchase arrangement the business typically owns the policies. In a cross purchase</div>
<div>
arrangement the other owners or another entity (e.g. a trust or a general partnership) own the policies.</div>
<div>
Life insurance policies can be very valuable assets. The fact that owners don’t own their own life</div>
<div>
insurance policies can result in a number of real problems, including:</div>
<div>
(1) The person/entity owning the policy may not pay the premiums or may mismanage the policy</div>
<div>
so that it is not in force at the insured owner’s death; in these instances no death benefits</div>
<div>
are paid.</div>
<div>
(2) The insured business owner has no ability to make decisions concerning the policy on his/her life. </div>
<div>
(3) “Surplus” death benefits (those in excess of the amount needed to purchase a deceased</div>
<div>
owner’s interest) are retained by the policy owner and can’t be used to meet the deceased</div>
<div>
owner’s personal financial objectives.</div>
<div>
Additional problems may arise when the purchase obligation is triggered before the departing owner’s</div>
<div>
death. Many buy-sells are activated when a triggering event occurs prior to an insured owner’s death. In</div>
<div>
lifetime buy-outs, there aren’t any policy death benefits available to fund the purchase of the departing</div>
<div>
owner’s interest. In these situations:</div>
<div>
(1) If an owner’s health deteriorates, he/she may become uninsurable and be unable to purchase</div>
<div>
other life insurance coverage. </div>
<div>
(2) Even when a departing owner is insurable, the cost of purchasing new coverage could be</div>
<div>
prohibitive because of age, health or other conditions. </div>
<div>
(3) The insured may not have the legal right to acquire ownership of the policy if he/she leaves</div>
<div>
the business before death.</div>
<div>
(4) Even when a departing owner does have the right to acquire ownership of the policy(ies)</div>
<div>
insuring his/her life, the cost of acquiring those policies could be too high. 3</div>
<div>
Some buy-sell agreements have provisions which give departing owners a limited opportunity to acquire</div>
<div>
ownership of their policies. For example, when they leave, the agreement may give them the option to</div>
<div>
purchase their policy from its current owner for its fair market value. Or, the agreement may give the</div>
<div>
purchaser(s) the option to transfer the policy back to the departing owner and treat the policy’s value as</div>
<div>
part of their payment.</div>
<div>
In some cases these provisions can be helpful. Much of the time, however, they may be ineffective for a</div>
<div>
number of reasons. For some policies, it can be difficult to establish their fair market value. Some policies</div>
<div>
include various guaranteed features/components which can be hard to value. It is quite possible that the</div>
<div>
owners may disagree over a policy’s fair market value. If the insurance company is asked to value it (as it</div>
<div>
is sometimes asked to do for the filing of 712 form), the remaining owners may not find the value</div>
<div>
acceptable. Other times the policy may not provide much in the way of long term value. For example,</div>
<div>
when term life insurance is used to fund a buy-sell agreement, the policy may terminate at a specified</div>
<div>
age (e.g. age 70 or age 80) or the premiums may increase substantially after age 65, the approximate</div>
<div>
age when many owners hope to retire. </div>
<div>
Personal Ownership of Buy-Sell Life Insurance Policies </div>
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Despite potential valuation difficulties and disagreements, a departing owner’s life insurance policy is an</div>
<div>
asset which could possibly be quite useful in his/her personal retirement planning or wealth transfer</div>
<div>
planning. Personal ownership of the policy would give the departing owner control of the death benefit;</div>
<div>
he/she could change the beneficiary designation so the death benefits could be used to meet personal</div>
<div>
financial objectives. </div>
<div>
The “Own Your Own Policy Buy-Sell” strategy is a new alternative for structuring the ownership of life</div>
<div>
insurance policies designed to fund either an entity purchase or a cross purchase buy-sell agreement. This</div>
<div>
strategy separates the ownership of the life insurance policies from the obligation to purchase created</div>
<div>
under the agreement. </div>
<div>
Why Is Personal Ownership Rarely Used? </div>
<div>
In spite of the potential advantages of personal life insurance ownership to fund buy-sell agreements,</div>
<div>
this alternative is not widely used. There are at least three main reasons: </div>
<div>
(1) Someone else (either another owner, entity or the business itself) has the legal obligation to</div>
<div>
purchase their interest. Because potential purchasers need to make sure they have sufficient</div>
<div>
funds to satisfy their purchase obligations under the agreement, it can make sense for them</div>
<div>
to own and control the policies.</div>
<div>
(2) The entity purchase and cross purchase methods are well known and provide business owners</div>
<div>
and their tax and legal advisors with workable and predictable results.4</div>
<div>
(3) The transfer for value rule of IRC Section 101. One of the biggest advantages of using life</div>
<div>
insurance in buy-sell funding is that policy death benefits are generally federal income tax free</div>
<div>
to the policy beneficiary when the insured owner dies. This valuable income tax benefit may</div>
<div>
be lost if the business owners own their own policies because they may violate the “transfer</div>
<div>
for value rule.” A transfer for value occurs when the owner of a life insurance policy transfers</div>
<div>
an interest in the policy to someone else and receives something of value in return. Under IRC</div>
<div>
Section 101 a transfer for value isn’t limited to just cash or tangible assets; “value” can also</div>
<div>
include a legally enforceable promise which could potentially benefit the transferor (such as a</div>
<div>
promise to purchase the owner’s interest). The result of violating the transfer for value rule is</div>
<div>
that the policy death benefit less the combined total of the consideration paid and total</div>
<div>
premiums paid after the transfer become taxable income to the policy beneficiaries.</div>
<div>
Here’s an example to illustrate the point. A and B are each 50% owners of a business. Each </div>
<div>
purchases a $1,000,000 life insurance policy on his own life and names the other owner as the </div>
<div>
policy beneficiary. Under normal circumstances neither A nor B would name each other as policy </div>
<div>
beneficiaries. Reciprocal promises to name each other as beneficiaries can be implied from their </div>
<div>
respective actions (or from the terms of the agreement). These reciprocal promises are the “value” </div>
<div>
that triggers the transfer for value rule. Thus, if A dies, part or all of the $1,000,000 death benefit </div>
<div>
B receives as the beneficiary of A’s policy may be taxable income to B.</div>
<div>
The Partnership Exception </div>
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Fortunately, it is possible to avoid the harsh income tax consequences of the transfer for value rule. In</div>
<div>
IRC Section 101(a)(2) Congress created a number of exceptions to the rule; if one of those exceptions</div>
<div>
applies, then it is possible the policy beneficiary may still receive the life insurance death benefits free of</div>
<div>
federal income taxes. An exception likely to apply to many buy-sell arrangements is the “partnership</div>
<div>
exception.” This exception shields transfers for value from federal income taxes if the transfer is to a</div>
<div>
partner of the insured or to a partnership in which the insured is a partner. There are some fine points to</div>
<div>
this exception which should be kept in mind, including:</div>
<div>
• The partnership must actually be operated as a partnership and not merely exist in form only. </div>
<div>
• Members of a limited liability company (LLC) that has elected to be taxed as a partnership are</div>
<div>
considered to be “partners” for purposes of the transfer for value rule. (Private Letter Ruling</div>
<div>
(PLR) 9625013).</div>
<div>
• A transfer for value from a corporation to a partnership in which an insured shareholder is a</div>
<div>
partner comes within the exception (PLR 9042023). </div>
<div>
• Transfers to shareholders who are partners, even though in an unrelated partnership, fall</div>
<div>
within the exception (PLR 9347016, PLR 9045004).</div>
<div>
• The transfer of policies insuring shareholders / partners from a corporation to a partnership established</div>
<div>
specifically to receive and manage the policies comes within the exception (PLR 9309021). 5</div>
<div>
• The IRS has ruled that it will not issue rulings concerning whether or not the exception applies</div>
<div>
to a transfer of a policy to an unincorporated organization where substantially all of the</div>
<div>
organization’s assets consist or will consist of life insurance policies on the lives of its members</div>
<div>
(Rev. Proc. 20063, 2006-1 IRB 122). Thus, it may advisable for the partnership to have other</div>
<div>
assets in addition to life insurance policies on the lives of the partners in the partnership.</div>
<div>
The “Own Your Own Policy Buy-Sell” </div>
<div>
The ability to use the partnership exception to avoid the transfer for value creates an opportunity for a</div>
<div>
new type for life insurance-funded buy-sell arrangement—the “Own Your Own Policy (OYOP) Buy-Sell.”</div>
<div>
In this approach each owner owns his/her own policy and names other owners (or the business in an</div>
<div>
entity purchase agreement) as beneficiaries of part of the death benefit so they have the ability to meet</div>
<div>
their purchase obligations. If these owners are in a partner/partnership relationship, the transfer for value</div>
<div>
rule should be avoided.</div>
<div>
The Own Your Own Policy Buy-Sell—Cross Purchase </div>
<div>
Assuming there is valid partnership in place or the business is organized and taxed as an LLC, LLP or a</div>
<div>
partnership, these steps may be taken:</div>
<div>
(1) The owners enter into a cross purchase arrangement; each owner agrees to purchase his/her</div>
<div>
pro rata share of the interest of the other shareholders when they die.</div>
<div>
(2) Each owner purchases and pays the premiums on a policy on his/her own life with a face</div>
<div>
amount at least as large as the value of his/her interest in the business; an option B death</div>
<div>
benefit approach (death benefit payable is the face amount plus premiums paid) may be</div>
<div>
appropriate because the insured’s estate will then recover premiums paid into the policy.</div>
<div>
(3) Each owner names the other owners as partial beneficiaries of the policy death benefit</div>
<div>
according to their pro rata shares of the business; the necessary forms are filed with the</div>
<div>
insurance company.</div>
<div>
(4) At an insured owner’s death, the death benefits are paid out according to the policy beneficiary</div>
<div>
designation; each surviving owner uses his/her share of the death benefit to purchase part of the</div>
<div>
deceased owner’s share of the business from his/her estate under the terms of the agreement.</div>
<div>
(5) If an owner retires or otherwise leaves the business before death, the remaining owners may</div>
<div>
use the cash values in the policies they own on themselves and/or other personal assets to</div>
<div>
purchase their respective shares of the departing owner’s interest.</div>
<div>
(6) Both the departing and remaining owners file the forms needed to change the beneficiary</div>
<div>
designations on all the life insurance policies.6</div>
<div>
The Own Your Own Policy Buy-Sell—Stock Redemption </div>
<div>
If the business is organized as a C corporation or Subchapter S corporation and the parties wish to</div>
<div>
establish an entity purchase or stock redemption buy-sell format, the life insurance policies may still be</div>
<div>
owned by the insured owners. Although the partnership exception may not be available to shield the</div>
<div>
death benefit from the transfer for value rule, a different exception to this rule may apply—the</div>
<div>
corporation exception. This exception can be used when the transfer for value is to a corporation in</div>
<div>
which the insured is a shareholder or director. See IRC Section 101(a)(2)(b). </div>
<div>
The shareholders could potentially use the Own Your Own Policy strategy to implement a corporate</div>
<div>
entity purchase/stock redemption plan with these steps: </div>
<div>
(1) The owners and the corporation enter into a stock redemption buy-sell agreement; the</div>
<div>
corporation agrees to purchase the interests of shareholders when they leave or die.</div>
<div>
(2) Each owner purchases and pays the premiums on a policy on his/her own life with a face</div>
<div>
amount at least as large as the value of his/her interest in the business.</div>
<div>
(3) Each owner names the corporation as one of the policy beneficiaries as required in the</div>
<div>
agreement; the agreement may establish standards for the owners regarding paying</div>
<div>
premiums and administering the life insurance policies.</div>
<div>
(4) Assignment forms or beneficiary forms are filed with the insurance company. </div>
<div>
(5) At an insured owner’s death, the death benefits are paid to the corporation per the</div>
<div>
beneficiary designation; the corporation uses these death benefits to redeem the deceased</div>
<div>
owner’s stock.</div>
<div>
(6) If an owner retires or otherwise leaves the business before death, the corporation will use other</div>
<div>
assets to redeem the departing owner’s stock; the beneficiary forms are changed.</div>
<div>
Possible Advantages When Owners Own Their Own Policies </div>
<div>
Upon close examination, there may be a number of potential advantages when business owners own</div>
<div>
their own buy-sell life insurance policies. They include:</div>
<div>
(1) Personal Ownership and Control—Each owner makes the decisions concerning his/her</div>
<div>
own policy (however, if the agreement sets standards for the policies, each owner would</div>
<div>
have to satisfy those standards / requirements).</div>
<div>
(2) One Policy Per Owner—There is no need for multiple policies on each owner.</div>
<div>
(3) Ability to Include Personal Death Benefit Coverage—An owner may want more death</div>
<div>
benefits than the amount needed under the agreement; he/she may decide to increase the</div>
<div>
death benefits to accomplish personal protection and wealth transfer planning objectives in</div>
<div>
addition to the buy-sell funding objective.7</div>
<div>
(4) Each Owner Pays His/Her Own Way—Each owner is responsible for his her own premiums;</div>
<div>
younger or healthier owners aren’t forced to pay premiums on older or less healthy owners. </div>
<div>
(5) Choose Own Policy and Set Own Premium Level—Within the terms of the agreement,</div>
<div>
each owner may decide what type of policy to purchase and how much premium to pay;</div>
<div>
they may choose to pay in more than the minimum in order to increase cash values</div>
<div>
potentially available to fund the purchase of another owner’s interest or to create</div>
<div>
supplemental retirement income for themselves.</div>
<div>
(6) Business Dollars For Premiums Potentially Available—The business may assist with paying</div>
<div>
premiums; time-tested premium funding techniques like Section 162 bonus plans, split dollar,</div>
<div>
and split dollar loans may potentially be used.</div>
<div>
(7) The Policies Are Portable—Every owner who leaves the business before death takes the</div>
<div>
policy with him; there is no need to attempt to acquire the policy from another owner or</div>
<div>
from the business.</div>
<div>
(8) Wealth Transfer Planning—After an owner leaves, he/she may reposition the policy to meet</div>
<div>
personal needs without going back through the underwriting process to purchase new coverage;</div>
<div>
problems with increased premiums and decreased insurability can potentially be avoided.</div>
<div>
What Type of Coverage Is Appropriate? </div>
<div>
Many business owners consider the need for buy-sell life insurance to be temporary. That’s because they</div>
<div>
often expect to sell their interests when they retire (usually between ages 60-70). As a result, they often</div>
<div>
use term insurance to fund their purchase obligation. Owners who leave at retirement are usually bought</div>
<div>
out with cash, debt (notes) or future earnings (through installment payments) or a combination thereof.</div>
<div>
The perception that owners are likely to sell out when they retire encourages the use of term insurance</div>
<div>
for buy-sell funding.</div>
<div>
In the Own Your Own Policy Buy-Sell structure cash value life insurance may be appropriate because the</div>
<div>
policy must be in force at the insured’s death. This means it may have to be in force for a longer period</div>
<div>
of time. Owners who like the OYOB approach and want their death benefit coverage to stay in force</div>
<div>
after they leave will likely have other uses for the policy. For the policy to be viable for some years after</div>
<div>
the owner’s departure, cash value insurance may be needed. Cash value insurance may also be attractive</div>
<div>
because of its potential to provide some degree of supplemental income after the owner leaves the</div>
<div>
business. The fact that the policy can be used for other purposes after the insured owner’s interest in the</div>
<div>
business has been purchased makes cash value life insurance appropriate.8</div>
<div>
Managing the Policies </div>
<div>
The business owners may be able to combine both their business life insurance planning and their</div>
<div>
personal life insurance planning in one personally owned policy. The total death benefit could include</div>
<div>
components for buy-sell funding, spousal support, mortgage and personal debt repayment, and estate</div>
<div>
liquidity. Of course, the personal portion of the death benefits will be included in their taxable estates for</div>
<div>
estate tax purposes. If this is a problem, then it may be possible for the insured owner to establish an</div>
<div>
irrevocable life insurance trust (ILIT) and have it own the policy. The portion of the death benefit needed</div>
<div>
to fund the buy-sell arrangement could be handled by naming the other owners or the business as</div>
<div>
beneficiaries of the ILIT to the extent of ownership in the business. The ILIT could be drafted so that their</div>
<div>
status as beneficiaries would end if they die or leave the business before the insured or if the insured ILIT</div>
<div>
grantor leaves the business before death.</div>
<div>
The insured is responsible for paying policy premiums. He/she can use personal funds or may enter into a</div>
<div>
premium sharing arrangement with the business or an outside entity. If it makes financial sense, the</div>
<div>
business may be able to supply some of the premium dollars through an economic benefit split dollar</div>
<div>
arrangement or a split dollar loan. It is also possible that some assets from the business could be</div>
<div>
distributed to the owners as compensation, dividends or (depending on the business’ tax structure) return</div>
<div>
of basis. </div>
<div>
Wise owners will want to make sure the death benefits they need from another owner’s policy will be</div>
<div>
available to help them meet their purchase obligations at the owner’s death. Thus, their status as</div>
<div>
beneficiaries entitled to receive a portion of the death benefit must be formalized in the buy-sell</div>
<div>
agreement. Their rights can potentially be secured through an irrevocable beneficiary designation, a</div>
<div>
written assignment or a policy endorsement. They should consult with their tax and legal advisors to</div>
<div>
determine which strategy is best suited to their needs.</div>
<div>
Potential Tax Consequences of the OYOP Buy-Sell </div>
<div>
The year-to-year income tax treatment of on OYOP buy-sell arrangement is not known with certainty.</div>
<div>
The transfer for value issue should only arise when an insured owner dies, not while he/she is alive. It</div>
<div>
does not create any year-to-year income tax consequences during an insured’s lifetime. Also, it is possible</div>
<div>
to “cure” a transfer for value before the insured’s death by transferring the policy back to the insured.</div>
<div>
Are there any year-to-year tax consequences when a policy owner names a business partner as a</div>
<div>
temporary beneficiary of all or part of the death benefit of his policy in return for a business partner</div>
<div>
doing the same for him? </div>
<div>
The authors are not aware of any regulations, rulings or cases which have directly addressed an OYOP</div>
<div>
buy-sell arrangement. Because the business is not involved in the arrangement, we believe that income</div>
<div>
taxation under the following internal revenue code sections is not applicable: </div>
<div>
• Section 162—no compensation from the business </div>
<div>
• Section 79—no plan of group insurance</div>
<div>
• Section 264—no benefit provided from the business to the owners.9</div>
<div>
We believe the income taxation of OYOP arrangements could potentially be viewed in at least three</div>
<div>
different ways: </div>
<div>
No Taxation</div>
<div>
An OYOP arrangement may be compared to how life insurance is sometimes used in divorce/marital</div>
<div>
dissolution situations. In addition to alimony and child support, divorce decrees may require one spouse</div>
<div>
to purchase and maintain life insurance coverage on his/her life for the benefit of an ex-spouse for a</div>
<div>
specified term of years. After the specified term expires, the insured ex-spouse is entitled to do anything</div>
<div>
he/she wishes with the policy. When a provision like this is included in a divorce decree, a binding legal</div>
<div>
obligation on the part of the ex-spouse to provide life insurance protection is created. If the spouse</div>
<div>
receiving the life insurance protection does not own the policy, then the premium payments are not</div>
<div>
considered alimony and the value of the life insurance coverage is not taxable income (Temp. Treasury</div>
<div>
Reg. 1.71-1T, A-6). </div>
<div>
It is possible that the taxation of the temporary year-to-year life insurance protection in an OYOP buy-sell</div>
<div>
arrangement could be handled in a similar way. For this argument to be effective, it is likely that the</div>
<div>
buy-sell agreement must create an obligation on the part of each owner to provide the other owners</div>
<div>
with a specific dollar amount of life insurance death benefits. Accordingly, it may make sense for the</div>
<div>
agreement to have a provision requiring each owner to secure life insurance coverage on his/her life and</div>
<div>
to name the other owners as beneficiaries for stated amounts or percentages of that coverage. </div>
<div>
Taxation Under the Split Dollar Rules</div>
<div>
Could the split dollar regulations apply to the temporary assignment of policy death benefits? An analysis</div>
<div>
of the split dollar regulations creates doubt as to whether an OYOP arrangement qualifies as a split dollar</div>
<div>
arrangement. The regulations state that in a split dollar life insurance arrangement “at least one of the</div>
<div>
parties to the arrangement paying premiums…is entitled to recover (either conditionally or</div>
<div>
unconditionally) all or any portion of those premiums and such recovery is to be made from, or is secured</div>
<div>
by, the proceeds of the life insurance contract.” See Reg. 1.61-22. In the OYOP strategy the insured</div>
<div>
owner (who is also the sole premium payor) temporarily names the other owners as beneficiaries of the</div>
<div>
death benefit and does not retain a right to recover any portion of the premiums he/she has paid from</div>
<div>
the death benefits provided. </div>
<div>
Should the IRS decide to apply the split dollar rules to an OYOP buy-sell arrangement, it could possibly</div>
<div>
conclude that the arrangement should be treated as a private split dollar plan. In this event, an owner</div>
<div>
who names another owner as a beneficiary of part or all of his policy death benefit could be deemed to</div>
<div>
be making a gift to the other owners. The value of the gift could be the economic benefit value of the</div>
<div>
death benefit provided. The economic benefit value is determined by multiplying the IRS Table 2001 rate</div>
<div>
for the insured’s current age by the number of $1,000 units of death benefit that would be paid to that</div>
<div>
owner if the insured died during the current year. If the necessary requirements are met, it is possible the</div>
<div>
rates of an insurance company’s qualifying term policy could be used in place of the IRS Table 2001</div>
<div>
rates. If a donee has a “present interest” in the gift, then it may qualify for the gift tax annual exclusion.</div>
<div>
If no “present interest” exists, then the gift would reduce the donor’s lifetime gift tax exemption. These</div>
<div>
would be “cashless” gifts since nothing tangible is actually transferred.Split Dollar example: Suppose A, B & C are equal owners of Wacky Widgets LLC. The business is</div>
<div>
appraised to be worth $3,000,000 and the owners decide to use the OYOP</div>
<div>
Buy-Sell. Their respective ages are A-55, B-45 and C-35. Each purchases a</div>
<div>
$1,000,000 policy on his own life. Each names the other two owners as</div>
<div>
equal beneficiaries of $1,000,000 of the life insurance coverage ($500,000</div>
<div>
each). Based on the IRS Table 2001 rates, over the next five years each could</div>
<div>
be deemed to make economic benefit gifts under the private split dollar rules</div>
<div>
in these amounts:</div>
<div>
No Taxation as a Fair-Market Value Sale</div>
<div>
It may be possible to avoid taxation on the assignment of the life insurance benefits if each owner</div>
<div>
annually pays the other owners fair market value for his/her share of the policy death benefit. What is</div>
<div>
that value? A good argument could be made that it is the economic benefit value determined under the</div>
<div>
split dollar rules.</div>
<div>
This alternative could be compared to old-style “reverse” split dollar plans which were sometimes used in</div>
<div>
the 1990’s before the IRS revised the split dollar rules. In these old reverse split dollar plans, an owner</div>
<div>
had a personal life insurance policy on his/her own life. The corporation “rented” some or all of the</div>
<div>
death benefits from that policy to meet its need for key person life insurance. It paid the owner-insured</div>
<div>
an annual rental fee for the annual use of the owner’s personal life insurance death benefit protection.</div>
<div>
The amount of the rent paid annually was the economic benefit value. </div>
<div>
A fair market rental payment for temporary use of the death benefit coverage could be considered to negate</div>
<div>
any potential gift from the policy owner. If the value of the death benefit protection is equal in value to the</div>
<div>
rent paid, then it can be argued that the assignment of the death benefit creates no tax consequences</div>
<div>
because items of equal value are exchanged. Under this reasoning, the assignment of the death benefit may</div>
<div>
not create any taxable income to the policy owner, but the rental income each owner receives in return for</div>
<div>
assigning his/her policy death benefits to other owners could be treated as taxable income. </div>
<div>
10</div>
<div>
A’s Annual Gift </div>
<div>
(55)</div>
<div>
B’s Annual Gift </div>
<div>
(45)</div>
<div>
C’s Annual Gift </div>
<div>
(35)</div>
<div>
Year 1 $4,150 $1,530 $ 990</div>
<div>
Year 2 4,680 1,670 1,010</div>
<div>
Year 3 5,200 1,830 1,040</div>
<div>
Year 4 5,660 1,980 1,060</div>
<div>
Year 5 6,060 2,130 1,07011</div>
<div>
This strategy presents a new transfer for value issue because an interest in the policy death benefit is</div>
<div>
being transferred for valuable consideration. However, an exception to the transfer for value rule may</div>
<div>
apply to prevent potential adverse income taxation. The applicable exception is that the transfer goes</div>
<div>
back to the insured. See IRC 101(a)(2).</div>
<div>
If this is the tax approach the IRS adopts, what would be the economic impact to the shareholders?</div>
<div>
Simply stated, the out-of-pocket cost to each shareholder would have three components:</div>
<div>
(1) The cost of the premium on his/her own life insurance policy, LESS</div>
<div>
(2) The total “rental” payment received from each of the other owners for the assignment of their</div>
<div>
share of the policy death benefit, PLUS</div>
<div>
(3) The potential income tax on the total of the “rental” payments received from the other owners.</div>
<div>
Some Potential Disadvantages </div>
<div>
Some possible disadvantages to an OYOP Buy-Sell arrangement include:</div>
<div>
(1) A procedure for monitoring the policies should be implemented and enforced. The buy-sell</div>
<div>
agreement could require each owner to present a quarterly, semi-annual or annual report of</div>
<div>
the status of their life insurance policy. The business could hire a life insurance expert to</div>
<div>
review the policy information and make an annual report. </div>
<div>
(2) The policy beneficiary designations should be confirmed with the insurance company and</div>
<div>
reviewed regularly.</div>
<div>
(3) If applicable, economic benefit calculations would need to be performed annually and any</div>
<div>
taxable gifts should be reported to the IRS; to the extent economic benefit gifts don’t qualify</div>
<div>
for the gift tax annual exclusion, a portion of an owner’s lifetime gift tax exemption would</div>
<div>
be used.</div>
<div>
(4) Taxable gifts that reduce an owner’s lifetime gift tax exemption may also reduce the amount</div>
<div>
of the estate tax unified credit available at the owner’s death; as a result, the amount of</div>
<div>
property an owner may be able to transfer federal estate tax free at death may be reduced.160112 06/1/2011</div>
<div>
<br /></div>
<div>
<div>
Conclusion </div>
<div>
For many years advisors to business owners have avoided having owners personally own the life</div>
<div>
insurance policies that fund their buy-sell arrangements. This may no longer need to be the case. The</div>
<div>
Own Your Own Policy Buy-Sell is a strategy which has the potential to provide many business owners</div>
<div>
with the ability to own and control their life insurance policies while still maintaining policy death</div>
<div>
benefits to fund buy-sell obligations triggered by death. Because the OYOP strategy has the potential to</div>
<div>
combine buy-sell funding with personal life insurance needs, it gives them the opportunity to combine all</div>
<div>
their life insurance needs in a single policy. It also gives business owners who leave their businesses</div>
<div>
during their lifetimes more opportunity to customize, structure and manage their policies to provide</div>
<div>
ongoing benefits after they leave the business.</div>
</div>
<div>
<br /></div>
<div>
These materials are not intended to and cannot be used to avoid tax penalties. They were prepared to support the promotion or marketing of the matters</div>
<div>
addressed in this document. Each taxpayer should seek advice from an independent tax advisor.</div>
<div>
The ING Life Companies and their agents and representatives do not give tax or legal advice. This information is general in nature and not comprehensive, the</div>
<div>
applicable laws change frequently and the strategies suggested may not be suitable for everyone. You should seek advice from your tax and legal advisors</div>
<div>
regarding your individual situation.</div>
<div>
Life insurance products are issued by ReliaStar Life Insurance Company (Minneapolis, MN), ReliaStar Life Insurance Company of New York (Woodbury, NY), and</div>
<div>
Security Life of Denver Insurance Company (Denver, CO). Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted and its</div>
<div>
products issued. All are members of the ING family of companies.</div>
<div>
© 2011 ING North America Insurance Corporation cn67400052014</div>
<div>
OYOP Applications </div>
<div>
The OYOP Buy-Sell concept could potentially apply to a large number of businesses. That’s because many</div>
<div>
existing businesses are currently structured as limited liability companies (LLCs), limited liability</div>
<div>
partnerships (LLPs), professional limited liability partnerships (PLLPs) and general partnerships. The LLC</div>
<div>
form of business is a legal structure that is being adopted by many new businesses. Owners of C</div>
<div>
corporations and Subchapter S corporations often have assets that are used in the business but are</div>
<div>
owned outside the corporation in a partnership. C corporation and Subchapter S corporation owners</div>
<div>
may choose to create a partnership by contributing personal assets and/or taking distributions from the</div>
<div>
corporation and funneling the after-tax portion of those distributions into a new partnership. In the</div>
<div>
alternative, C corporation and S corporation owners could structure their life insurance buy-sell funding</div>
<div>
to use the corporation exception to the transfer for value rule.</div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-13271228889225659632011-04-26T15:21:00.000-04:002012-06-18T18:19:38.032-04:00Charitable Contributions with Life Insurance<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px; line-height: 22px;">Life insurance is great way to leverage a small cash donation to have a large benefit for your favorite charity, non-profit or church organization. Donating life insurance proceeds can be as easy as simply naming your favorite charity as the beneficiary of a policy. A policy holder could go one step further and irrevocably give the policy to the organization by naming the charity as the policy owner. If you donate a <span class="Apple-style-span"><b><a href="http://www.aarowfinancial.com/universal-life-insurance.html">permanent cash value life insurance policy</a></b></span>, the charity could enjoy the policy’s accrued cash value at its own choosing. Also, if the charitable organization owns the life insurance policy, premiums may also be tax deductible. Please see IRS code below:<br /><br /><br />Charitable deduction for individual life insurance premiums</span><br />
<ol style="list-style-image: initial !important; list-style-position: outside !important; list-style-type: decimal !important; margin-bottom: 5px !important; margin-left: 0px !important; margin-right: 0px !important; margin-top: 5px !important; overflow-x: hidden; overflow-y: hidden; padding-bottom: 0px; padding-left: 25px !important; padding-right: 0px; padding-top: 0px;">
<li style="list-style-image: initial !important; list-style-position: outside !important; list-style-type: decimal !important; margin-bottom: 0px !important; margin-left: 0px !important; margin-right: 0px !important; margin-top: 3px !important; padding-bottom: 0px; padding-left: 5px !important; padding-right: 0px; padding-top: 0px;"><span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px; line-height: 22px;">While personal life insurance premiums are not deductible as such, a charitable deduction may be available for premiums paid on a policy owned by a charity [IRC §170].</span></li>
<ol style="list-style-image: initial !important; list-style-position: outside !important; list-style-type: decimal !important; margin-bottom: 5px !important; margin-left: 0px !important; margin-right: 0px !important; margin-top: 5px !important; overflow-x: hidden; overflow-y: hidden; padding-bottom: 0px; padding-left: 25px !important; padding-right: 0px; padding-top: 0px;">
<li style="list-style-image: initial !important; list-style-position: outside !important; list-style-type: decimal !important; margin-bottom: 0px !important; margin-left: 0px !important; margin-right: 0px !important; margin-top: 3px !important; padding-bottom: 0px; padding-left: 5px !important; padding-right: 0px; padding-top: 0px;"><span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px; line-height: 22px;">A charitable organization or trustee of an irrevocable charitable trust must own the policy.</span></li>
<li style="list-style-image: initial !important; list-style-position: outside !important; list-style-type: decimal !important; margin-bottom: 0px !important; margin-left: 0px !important; margin-right: 0px !important; margin-top: 3px !important; padding-bottom: 0px; padding-left: 5px !important; padding-right: 0px; padding-top: 0px;"><span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px; line-height: 22px;">The deduction is subject to the limits on deductions for gifts to charities:</span></li>
<ol style="list-style-image: initial !important; list-style-position: outside !important; list-style-type: decimal !important; margin-bottom: 5px !important; margin-left: 0px !important; margin-right: 0px !important; margin-top: 5px !important; overflow-x: hidden; overflow-y: hidden; padding-bottom: 0px; padding-left: 25px !important; padding-right: 0px; padding-top: 0px;">
<li style="list-style-image: initial !important; list-style-position: outside !important; list-style-type: decimal !important; margin-bottom: 0px !important; margin-left: 0px !important; margin-right: 0px !important; margin-top: 3px !important; padding-bottom: 0px; padding-left: 5px !important; padding-right: 0px; padding-top: 0px;"><span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px; line-height: 22px;">Cash payments “to charity” in the amount of the premiums will qualify for a current deduction of up to 50% of the donor’s adjusted gross income, with a five-year carryover [IRC §170(b)(1)(A)].</span></li>
<li style="list-style-image: initial !important; list-style-position: outside !important; list-style-type: decimal !important; margin-bottom: 0px !important; margin-left: 0px !important; margin-right: 0px !important; margin-top: 3px !important; padding-bottom: 0px; padding-left: 5px !important; padding-right: 0px; padding-top: 0px;"><span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px; line-height: 22px;">The deduction for premiums paid directly to the insurer “for the use of charity” may be limited to 30% of the donor’s adjusted gross income, with a five-year carryover [IRC §170(b)(1)(B)].</span></li>
</ol>
</ol>
</ol>
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px; line-height: 22px;"><br />For more information on donating to charitable causes via life insurance and charitable remainder trusts, please <span class="Apple-style-span"><b><a href="http://www.aarowfinancial.com/contact-us.html">Contact Us</a></b></span> for a free consultation. </span><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-18799034428379446372011-02-23T19:19:00.000-05:002012-06-18T18:28:50.610-04:00GeriPal - Geriatrics and Palliative Care Blog: Length of Stay in Nursing Homes at the End of Life...<a href="http://www.geripal.org/2010/08/length-of-stay-in-nursing-homes-at-end.html?spref=bl">GeriPal - Geriatrics and Palliative Care Blog: Length of Stay in Nursing Homes at the End of Life...</a>: "One out of every four of us will die while residing in a nursing home. For most of us, that stay in a nursing home will be brief, although t..."<div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-60352817288845310932011-02-16T15:36:00.000-05:002012-06-18T21:26:33.471-04:00Won't Medicaid pay for my Long Term Care?<div>
<br /></div>
<div>
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px; line-height: 22px;"><span class="Apple-style-span"><b><a href="http://www.ncdhhs.gov/dma/medicaid/">Medicaid</a></b></span> will cover long term care expenses, but only after assets and income have been spent down making the remaining spouse, if any, "impoverished". Assets that need to be spent down include retirement and brokerage accounts, savings, CD's and social security income. Medicaid will allow for an impoverished spouse to keep only 1 car, 1 home, and a very limited monthly income. Any additional vacation homes,vehicles, monthly income or anything with real value needs to be sold, and proceeds used to pay for long term care needs. Medicaid usually requires an annual audit of finances to make sure that the impoverished spouse still qualifies for the assistance. For any additional information on this subject, feel free to <span class="Apple-style-span"><b><a href="http://www.aarowfinancial.com/contact-us.html">contact us</a></b></span> with your questions.</span></div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-34979010140811207602011-02-10T14:12:00.001-05:002012-06-18T18:31:05.449-04:00Universal Life Insurance<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"></span><br />
<h2 style="color: #333333; font-family: georgia, 'times new roman', serif; font-size: 18px; font-weight: bold; line-height: 1.5; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 12px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left;">
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;">Universal Life Insurance </span></h2>
<div class="paragraph editable-text" style="line-height: 22px; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 12px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left;">
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;">Universal life insurance (UL) is a form of permanent life insurance just like whole life insurance. Unlike a <a href="http://www.aarowfinancial.com/whole-life-insurance.html" style="color: #274e7a; font-weight: bold; text-decoration: none;" title="">w</a><strong><a href="http://www.aarowfinancial.com/whole-life-insurance.html" style="color: #274e7a; font-weight: bold; text-decoration: none;" title="">hole life policy</a></strong> however, a universal life policy is a flexible premium life contract. This means that a universal life policy will pay for itself out of the policies' cash value, if enough present, without any direction from or loan fees to the policy holder. (A whole life policy can pay for itself, if set up properly at issue, but the policy owner needs to request from the issuing company, at each billing cycle, that the whole life policies' dividends pay the premiums due.)</span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><br /></span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><br /></span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;">Just like <strong><a href="http://www.aarowfinancial.com/whole-life-insurance.html" style="color: #274e7a; font-weight: bold; text-decoration: none;" title="">whole life coverag</a></strong><a href="http://www.aarowfinancial.com/whole-life-insurance.html" style="color: #274e7a; font-weight: bold; text-decoration: none;" title="">e</a> a universal life policy will build cash value on a part of the premiums paid into to the policy. The rate of growth of the cash value depends on the investment history of the issuing company. The amount of premiums paid into a UL that is credited with a return depends on the net amount risk to insurance carrier. The net amount at risk is the difference between a UL's cash value and the net death benefit. For example, if you were to purchase a UL policy for $250,000 at age 35, then the costs for year 1 would be based on an <a href="http://www.aarowfinancial.com/term-life-insurance.html" style="color: #274e7a; font-weight: bold; text-decoration: none;" title="">annual renewable term (ART) policy</a>inside the UL contract. The costs for a term policy for $250,000 on a 35 year old happened to be $200 for the first year and the policy holder paid $1,000 into the policy. So, the additional $800 of the premium paid into the UL was credited with a return based on the issuing companies investment history for that year. In year two the net amount risk to the carrier is reduced by the amount of cash value in the contract, in this example the insurance company paid a 7% return on the remaining $800, crediting $56 dollars to the cash value. The new net amount at risk to the insurance carrier in year 2 is $250,000 - $856 (the cash value + the prior years return) = $249,144. This process compounds annually and can really add up fast. This will reduce the net amount at risk, the cost of insurnace and fatten up the policies' cash value. Just like <a href="http://www.aarowfinancial.com/whole-life-insurance.html" style="color: #274e7a; font-weight: bold; text-decoration: none;" title="">whole life insurance,</a> a UL policy builds cash value on a tax-free basis and can even be accessed tax-free if done correctly. The annual renewable term policy that is the "chassis" of the UL does ratchet up each year with your age, this allows the insurance carrier to offset the risks of an aging group of policy holders, but these increases in age considerations are offset by the cash value building and the net amount at risk reducing. The morale of this story is to find a good agent that can explain the moving parts inside a universal life policy and that will review the policy regularly with you. A UL policy that is set-up correctly is a very powerful cash accumulation and tax-advantaged tool. The death benefit is tax-free and can be much higher than the cash value in the contract.</span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><br /></span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><br /></span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;">Listed below are the different forms of UL coverage:</span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><br /></span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><br /></span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><u><strong>Current Assumption Universal Life (UL)</strong></u> - explained above, credits the policies' cash value with a fixed interest rate that is on par with market interest rates. A good current assumption UL will have a floor of guaranteed interest, to make sure that some kind of return is realized each year. For example, a current assumption UL that we recommend today has a guaranteed rate of 3%, but is currently crediting 2010 low interest rates of 4.5%.</span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><br /></span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><u><strong>Indexed Universal Life (IUL)</strong></u> - participates in market indicies, one of the most popular is the Standard & Poor's 500. The S&P 500 is an indicie of 500 of the largest capitilized companies traded on the New York Stock exchange and the NASDAQ. An IUL policy is credited with the growth of the indicie that it is attached to, subject to a cap rate. (E.g.- If the S&P 500 increases 20% in a year and the policy cap is 12%, then the policy is credited 12%.) Just like a current assumption UL, a IUL usually has a floor, or guaranteed rate of return during the negative years. An IUL that we recommend today has a 12% cap rate and a 1% floor.</span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><br /></span><br />
<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><u><strong>Guaranteed Universal Life (GUL)</strong></u> - is a guaranteed UL product. Most GUL's are not designed to build much if any cash value; this keeps the premiums lower. As long as the policy owner pays the premiums as scheduled the death benefit is guaranteed to the age illustrated or the policy's maturity date. We currently recommend a GUL that has no cash value and premiums so low, that we refer to it as "term till death".</span><br />
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<span class="Apple-style-span" style="color: #666666; font-family: georgia, 'times new roman', serif; font-size: 13px;"><b><u><br /></u></b></span></div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-27346619097000902932011-02-01T22:13:00.000-05:002011-02-01T22:13:52.002-05:00LIFE Foundation - The Insurance Word Blog - The Magic of Life Insurance<a href="http://www.lifehappens.org/blog/p,314/">LIFE Foundation - The Insurance Word Blog - The Magic of Life Insurance</a><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-20813118947389747912011-02-01T09:36:00.000-05:002012-06-18T21:18:32.958-04:00New Long Term Care ProductThere is a new Long Term Care product, offered by a large reputable insurance company, that now covers 80% of your Long Term Care expenses. This policy is easy to understand and offers great <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">piece</span> of mind. The level nature of the benefits help prevent premium increases in later years of the policy.<br />
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A 60 year old, standard health rated, married man can get 80% of his long term care covered up to $100,000 for only $990.28 a year. This $100,000 lifetime benefit will have guaranteed increases to help off set inflation.<br />
For any more information on this great <span class="blsp-spelling-error" id="SPELLING_ERROR_1">LTCI</span> product feel free to <a href="http://www.aarowfinancial.com/email-form.html">contact us</a>.</div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0tag:blogger.com,1999:blog-839593079661046578.post-14127088641910563122011-01-24T12:43:00.000-05:002012-06-18T21:31:15.830-04:00Women and Disability InsuranceDisability insurance is important coverage for anyone to have. If you were to become disabled due to accident or sickness and could no longer work, would you be able to keep up with your bills? The answer for the majority of the population is no. No matter your sex, some DI coverage is very important, as it is 33% more likely that you will become disabled than die from an accident or disease.<br />
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The number of women in the workplace is growing and currently they make up about 60% of the total workforce. More and more women are becoming the major "breadwinners" and decision makers of the household. It is also important to note that a 35 year-old woman is 3 times more likely to become disabled for 90 days or more than a man her same age. I believe that most women feel that they have coverage with their employers, however in this economy DI coverage is being included in many cut backs. Or they know that they have coverage with their employers and feel that it is sufficient. Most employers plans are long term DI policies and cover only 60% of total salary after a 90 day waiting period. That is 3 months without income and an income 40% less than a household is accustomed too. A good supplemental DI policy is worth looking into. For a free analysis of your current coverage or to figure out how much coverage you need. Check out our <a href="http://www.aarowfinancial.com/disability-insurance-wilmington-nc.html">disability calculator</a> or click here for a <a href="http://www.aarowfinancial.com/insurance-quotes-wilmington-nc.html">DI Quote</a>.</div>
</div><div class="blogger-post-footer">Aarow Financial Group</div>Aarow Financial Grouphttp://www.blogger.com/profile/13530897488020241624noreply@blogger.com0