October 21, 2018

Today in History -

1879

Electric Incandescent Lamp Invented

Thomas Edison invents the electric incandescent lamp.  It lasted 13 1/2 hours before burning out.
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1917

US Soldiers Enter WWI

Members of the 1st Division of the US Army, training in Luneville, France, become the first Americans to see action on the front lines in WWI.

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1959

Guggenheim Museum Opens in New York.

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When Will The Bull Bow to the Bear?

https://finance.yahoo.com/news/p-nasdaq-hit-records-highs-143807830.html The S&P (.SPX) was up 5.29 points, or 0.20 percent, at 2,602.37 and the Nasdaq (.IXIC) was up 9.70 points, or 0.14 percent, at 6,877.06. The materials index's (.SPLRCM) 0.49 percent rise led the advancers, followed by the energy index (.SPNY), as commodities prices rose. On the Nasdaq, 1,382 issues rose and 894 fell.

Turned Down for Long Terrm Care or Think It's too Expensive - Antolin Reiber

Have you applied and been turned down for long term care (LTC)? If so, you may have other options. With Medicare estimating that 7 out of 10 people 65 years of age and over will need some form of LTC, let's face it, it's a bad business deal from an insurance company's perspective. Because you will never likely pay in premium the amount that you will receive for a covered claim, it's not surprising that numerous insurance companies like State Farm and Metlife have stopped offering LTC insurance.

You see, insurance companies like to insure good risks.  With 70% of all insureds projected to file a claim, insurance companies are becoming more and more selective in whom they will approve for coverage. Nationally, close to half of all applicants are rejected for traditional LTC insurance. Now, I'm not talking about 50% of everyone an insurance agent talks to. I'm saying 1/2 of all applicants that an agent thinks can make it through underwriting actually gets denied.

So what is an alternative?

Enter Short Term Care (STC)

STC  pays a monthly benefit for a covered claim for up to twelve (12) months if used continuously.  Like all other LTC policies, payment of a STC benefit is triggered by the need for assistance with two (2) Activities of Daily Living (ADLs). 

Among all STC and LTC policy holders at Bankers Life, 60% of those making a claim for benefits claim for less than one (1) year. STC is an affordable, easy issue underwriting alternative to traditional LTC.

Introducing the Bankers Life STC policy.

Some Features:

- 90% of all applicants get approved.

- Choose any monthly benefit amount up to a maximum $6,200.00.

- Choose your length of coverage including 90, 180, 270 or 360 days.

- Choose your elimination period, i.e., 0, 15, or 30 days.

- Choose facility only, or comprehensive coverage including a 100% home health care option.

- Choose to include 5% compound inflation protection.

Look at the other people around you while you read this. If there are only 2 people in the room, 1 of you will need LTC, and at Medicare's 70% figures, there's a really strong chance that both of you will need it.

Covering yourself against the financial catastrophy of LTC is a business decision. As I stated in a previous entry, you may never need LTC. But what if you do?

Call me and we'll talk about reducing the likelyhood of the financial burden LTC will have upon you and your loved ones and how you can transfer all, or a portion of that risk to Bankers Life.

Antolin Reiber
Bankers Life
317-652-1717
antolin.reiber@bankers.com

Medicare Advantage, Critical Illness, & Hospital Indemnity by Antolin Reiber

Medicare Advantage Plans are a good choice for many seniors today. They generally offer benefits above the level of standard benefits provided by original medicare and have monthly premiums as low as $0 per month for an HMO, and around $55 per month for a PPO. Medicare Part D - prescription drug coverage is also included therein unless the member has other creditible prescription coverage such as through the VA or another circumstace exists as to why the member does not have such coverage.

However, individuals choosing a Medicare Advantage plan should give consideration to the out-of-pocket maximum $ amounts the Government sets each year. Currently the amount is set at $6,700.00 for in-network services and $10,000.00 for out-of-network services. *Note: For an HMO, there generally is NO coverage provided for out-of-network services.

Hospitalization and treatment for certain critical illnesses are among the primary causes contributing to a Medicare Advantage plan member hitting the out-of-pocket maximums. For a typical hospital stay, the member may expect a copay of approximately $300 per day for the first 6-7 days.  Regarding hospitalization, the following critical illnesses often require continuing hospital related costs, cancer, heart attacks, and strokes.  According to the CDC, 1 in 2 males, and 1 in 3 females will be diagnosed with cancer during his or her lifetime. Every 34 seconds someone has a heart attack in the US, and every 40 seconds, someone has a stroke.

Individuals that choose the lower cost premium of a Medicare Advantage plan would be well advised to also consider securing low cost coverage for a hospital stay, or for the diagnosis and trearment of one of the critical illnesses stated above.

To learn more about protecting yourself and your retirement savings against the certainties of the costs for medical treatment, contact me at your convenience for a risk assessment.

I may be contacted by phone at 317-652-1717 or by e-mail at antolin.reiber@bankers.com.

AJ Reiber

Retirement Planning & Protecting Your Spouse - Antolin Reiber

Life insurance is not only for final expenses.

It may also be an integral part of your retirement planning.

Consider the following Scenario:  Antollin Reiber  AJ

Employee, who is married, works for Company A and is getting ready to retire. Employee will receive a monthly pension from Company A upon retiring.

Question:

Should employee elect a single lifetime benefit or a  joint & survivor benefit?

Discussion:  

When you retire, you must choose the type of benefit that you want. Typically, there are two options.

1) A Single Life Benefit refers to monthly payments based only on the retiree's expected lifetime. The benefits stop at the death of said retiree.

2) A Joint and Survivor Benefit refers to monthly payments based on both spouse’s lifetimes. If the retiree dies before the spouse, the spouse will continue to receive a percentage of the original monthly amount.

With the Joint and Survivor Benefit, you and your spouse will receive lower monthly benefits than the Single Life Benefit. But, it guarantees a steady stream of income for two lifetimes – yours and your spouse's

If you choose the Single Life Benefit option, your spouse will be required to sign a legally binding Spousal Consent Form or Waiver. Once signed, the decision is final and cannot be changed.

You should always consult with an expert and with the benefits coordinator / pension plan administrator before deciding on which benefit option to select.

Additional Considerations: 

If you choose the Single Life Benefit, you and your spouse will receive a higher monthly benefit than if you choose the Joint and Survivor Benefit. Here, if the retiree is the first to die, then the benefit stops and the surviving spouse will NOT receive any continuing monthly benefits.

If the pension includes retiree health benefits, they may end for the spouse when the retiree dies 1st under the Single Life Benefit option. 

If you choose the Joint and Survivor Benefit you and your spouse will receive a lower monthly benefit and if the spouse dies first, then the retiree will continue to receive that lower monthly amount and the percentage that was being withheld by the plan administrator will be lost.

According to the latest data compiled by the CDC, the average life expectancy for a male is 76.4 years and for a female is 81.2 years.

Using this data, consider the following example . . .

Husband and wife are the same age.  Husband retires at age 66. If husband and wife elect a Single Life Benefit., they will receive $2000 per month which will end at husband's death.  If they elect a Joint and Survivor Benefit, they will receive $1500 per month. If husband dies first, wife will continue to receive $750 per month.

Using the above numbers, consider the following scenarios . . .

Scenario 1 -

Single Life Benefit is chosen.
The couple will receive $249,600 until husband's death at age 76.4. 

Wife will not receive any additional benefits during her remaining projected 4.8 years of life.

Calculations

Husband's avg life expectancy                                                  76.4 yrs

Subtract Husband's retirement age                                         -66.0 yrs      

                                                                                  

Retirement years                                                                          10.4 yrs

Joint retirement received 10.4 yrs x 12 mos/yr x $2000/mo =  $249,600.

Total Amount Received = $249,600

Scenario 2 -

Joint and Survivor Benefit is chosen.
The couple will receive $187,200 until husband's death at age 76.4. Wife will receive a total of $43,200 until her death at age 81.2.

Calculations

Husband's avg life expectancy                                                76.4 yrs

Subtract Husband's retirement age                                       -66.0 yrs      

                                                                                  

Retirement years                                                                       10.4 yrs

Wife's avg life expectancy                                                       81.2 yrs

Length of Time Wife Survives Husband                                4.8 yrs

Joint Retirement 10.4 yrs x 12 mos/yr x $1500/mo =  $187,200.

Plus (+)

Length of Time Wife Survives Husband 4.8 yrs x 12 mos/yr × $750/mo = $43,200

Total Amount Received = $230,400

BUT CONSIDER THIS . . .

Scenario 3 - 

If the couple chooses the Single Life Benefit of $2000 per month instead of the Joint and Survivor Benefit of $1500 per month, Husband may purchase a life insurance policy with a $128,000 death benefit with the $500 per month difference. In this scenario, the couple would receive $187,200 until husband's death at age 76.4 and then wife would receive the $128,000 death benefit from husband's life insurance policy.

Calculations

Husband's avg life expectancy                                                76.4 yrs

Subtract Husband's retirement age                                      -66.0 yrs      

                                                                                  

Retirement years                                                                       10.4 yrs

Joint Retirement 10.4 yrs x 12 mos/yr x $1500/mo =  $187,200.

Wife's avg life expectancy                                                        81.2 yrs

Length of Time Wife Survives Husband                                 4.8 yrs

Life insurance proceeds to wife at the time of husband's death = $128,000

Total Amount Received = $315,200

Comparing the above 3 options . . .

Single Life Benefit -
Total amount received during retirement = $249,600

Joint and Survivor Benefit -
Total amount received during retirement = $230,400

*Single Life Benefit with Life Insurance -
Total amount received during retirement = $315,200

Summary:  Antollin Reiber  AJ Reiber  Antollin Reiber  AJ Reiber  Antollin Reiber  AJ Reiber

The benefit of incorporating life insurance into your retirement plan can have a substantial impact on your continuing spousal income and support upon your death and is something to consider.

Please contact me to discuss how life insurance may be an integral part of your retirement planning.

Antolin Reiber is a licensed life insurance agent and specializes in the retirement areas of life insurance and long term care planning.  Contact me today at 317-652-1717 or by email at antolin.reiber@bankers.com

  AJ Reiber

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*Your ability to obtain life insurance is contingent in part to your ability to health qualify. Always consult with an expert prior to making any financial decisions regarding your retirement.

Time to Get Your Financial House in Order by AJ Reiber

Not only is it important to work on your health this time of year, it's essential to work on your wealth.

Antolin Reiber,, AJ Reiber, Lawyer

What you do in the first 6 weeks of January will largely define what you do the rest of the year.

Antolin Reiber,, AJ Reiber, Lawyer

You see, we're creatures of habit.  When you start something at the beginning of the new year & repeat it for at least 23 days, you're 75% more likely to continue the behavior throughout the year.

Antolin Reiber,, AJ Reiber, Lawyer

Call me today to start your 2017 wealth check-up!

AJ Reiber
Bankers Life
317-652-1717
antolin.reiber@bankers.com

You Could Pay for Your Long Term Care

The average cost of long term care (LTC) looms right at $8,000.00 per month and is growing at an annual rate of 4% compound interest.

Based on historical data, claims, and current costs, and future predictors such as the aging population, the number of baby-boomers turning 65, and the mortality and morbidity tables, Medicare says 7-10 people over 65 will need LTC.

If you are in fact one of the few Americans that can afford to pay for your long term care, WHY would you ever?  If you can afford to pay $8,000.00 per month in today's dollars, then you can certainly afford a hundred or so dollars per month so you wouldn't have to.

Additionally, many long term care premiums are tax deductible.

Covering yourself is just NOT a very good business decision.

Call me today to start a discussion.

AJ Reiber
Bankers Life
317-652-1717
antolin.reiber@bankers.com