The Act amends the landmark Patient Protection and Affordable Care Act, signed into law by President Obama on March 23, 2010.
The Henry J. Kaiser Family Foundation has a comprehensive summary of the effects of the new law available on the health reform section of its Web site. Be sure to look at both the provided implementation timeline and the PDF titled: Summary of Final Health Care Reform Law.
In our experience clients inquiring about life insurance are asking three questions:
How much do I need?
Upon the death of an income earner, families want to know that the financial resources exist to continue providing for surviving family members’ needs. Since each individual’s financial situation is different, a personalized Life Insurance Needs Analysis is the best way to determine your own requirements.
What kind of coverage should I purchase?
Term insurance is often used when budgets require the greatest amount of coverage at the lowest initial premium. Cash value coverage — whole life and universal life — offers lifetime protection, level premiums and accumulating values, often with tax advantages.
Who should I buy from?
When looking for a life insurance advisor, ask about professional training. The professional designations Charter Life Underwriter (CLU), Chartered Financial Consultant (CHFC), and Certified Financial Planner (CFP®) are indicative of comprehensive education and continual training.
Lifespans are longer than in 1980, enabling insurers to charge lower premiums for the same level of coverage provided on newly issued policies. Existing policies are unaffected by adoption of the new mortality tables.
For our existing clients, we’re advising a comparison of existing term life policies with ones based on the new mortality tables when a premium savings could be realized. Additionally, a term policy with a conversion rider will convert to a permanent policy based upon the 2001 ISO. Your life agent should fully explain the consequences of a policy replacment before performing one on your behalf.
We suggest you call your current life agent to discuss how the 2001 CSO may benefit you. If you have questions about or would like to review your coverage and don’t have an agent, please contact us.
CNBC has a clip of a segment discussing the possibilities of life permanent insurance as a small portion of an investment portfolio.
The video is embedded below the fold.