The North Carolina Department of Insurance (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.
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.
As for North Carolina Life Insurance, the products available to us are put into 3 major categories.
1. Term Life Insurance
2. Universal Life Insurance
3. Whole Life Insurance
The first category is term life insurance. 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 return of premium term life insurance product that will return 100% of the premiums that you pay into the term policy at the end of the term period.
The next major category is universal life insurance, 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.
The last major category is whole life insurance. 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.
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 contact me. 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.
Aarow Financial Group is your source for Life, Long Term Care & Disability Insurance Planning in NC.
Showing posts with label Wilmington NC insurance web site. Show all posts
Showing posts with label Wilmington NC insurance web site. Show all posts
Tuesday, June 12, 2012
Tuesday, May 1, 2012
What the heck is Cash First Long Term Care and why should I care?
Cash first Long Term Care Insurance 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.
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.
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!
I like to think of the cash first benefit as a disability insurance / 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. All advice and quotes are free.
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.
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!
I like to think of the cash first benefit as a disability insurance / 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. All advice and quotes are free.
Wednesday, June 30, 2010
New Look for Our Web Site
We are close to finalizing the redesign of our main corporate web site at AarowFinancial.com. For those of you who are unfamiliar with our company, we are an independent insurance agency headquartered in Wilmington, NC that offers life, long term care, and accident and disability insurance policies throughout North Carolina. Our new site if full of information on our carriers' various insurance products. We are currently working on integrating online quoting functionality to better serve the needs of our more tech savvy clientele.
We also are specialize in retirement and savings plans. Whether you are new parent looking for term life insurance protection or someone nearing retirement seeking saving strategies, we can likely help point you in the right direction. Stop by our Market Street location or call us toll free at 800-343-3401.
Please feel free to offer feedback on how we can improve our new web site and thanks again for considering Aaron Financial Group for all of your Wilmington, North Carolina insurance needs.
Subscribe to:
Comments (Atom)