Term Life Insurance

Term Life is insurance designed to provide coverage for a specific period of
time. Term insurance plans may provide coverage for as little as one year
(usually called annually renewable term or ART) or as long as 30 years. The
premiums for coverage vary based on the length of the term selected and
your age, sex and health. Most term plans provide guaranteed coverage
during the term as long as premiums are paid. Because term insurance is
limited in its coverage period, it is usually the least expensive type of life
insurance available.

Whole Life Insurance

Whole Life insurance does just what the name implies, it provides coverage
for your entire life or to age 100. Whole Life insurance also typically features
guaranteed premiums (they can never change) and guaranteed death
benefits. Unlike term insurance, most whole life plans also develop a
guaranteed cash fund, called cash value, which can be borrowed by the
policy owner. Because the premiums, death benefit and cash value are all
contractually guaranteed, whole life is the most expensive form of life
insurance you can buy. However, it provides peace of mind that you are
covered as long as premiums are paid, no matter whether you health
changes.

Universal Life Insurance

Universal Life insurance provide the most flexibility of all life insurance
plans. UL allows the policy owner to schedule the amount of premiums to
be paid, the length of premium payments, the amount of cash values and
the duration of the coverage as long as they are within the policy's
guidelines. Therefore, UL can be used to provide coverage for a short time,
like term insurance or for longer periods, even to age 100 like Whole Life.
Premiums may also be changed at certain times throughout the policy's life
or eliminated completely. Because of their complexity, an experienced agent
should be used to provide an illustration (ledger) showing how the policy
works as well as an explanation. Call us to learn more.

Disability Insurance

Basically, disability insurance provides a benefit that pays a portion of your
salary in the event you become injured, sick or pregnant and are unable to
work for a period of time. Most people can purchase disability coverage
through their employers health plan. This is called group disability and is
relatively inexpensive. But, it may also be limited in the coverage it provides.
Group disability usually only provides benefits based on your BASE SALARY,
so if your earnings are principally derived from commissions or bonuses,
they may be
excluded from group disability coverage. Many people  
purchase individual disability insurance separately if their employer does not
offer coverage or to cover excess earnings not covered by group insurance.
Like life insurance, your current health and age are factors in your ability to
purchase disability insurance but unlike life insurance, your occupation
plays a part as well. Hazardous occupations may not qualify for disability
coverage. Call us and consult an agent to see whether you qualify.


Long Term Care

Many people believe that Medicare and Medicaid will take care of them in
their old age. While these programs do provide certain benefits, like any
government program, benefits are limited and access to benefits controlled
by the guidelines of the program. To qualify for a Medicaid sponsored
nursing home care, the applicant must not have the means (assets) to pay
for care themselves. To qualify, you can have no more than $2,500 in assets.
Remember, Medicaid was designed as a program to provide health care for
poor people. Even if you can qualify, Medicaid decides the level of care you
will receive and the nursing home you will be placed. You  have no options
or choice.

Long Term Care insurance was developed to allow individuals to make their
own choices regarding the level of care they receive and where they recieve it.
LTC provides a monthly benefit that you pre-determine, which can be used to
pay for in-home care or nursing home care at a facility that you chose. Plus,
you get to keep your assets! To learn more about long term care, schedule a
consultation with one of our insurance specialists. They can explain what is
covered by Medicaid (and what is not) as well as how long term care
insurance can provide you the freedom to determine the type of care you
want.


Individual Insurance Definitions
Somerset
Life & Health Insurance Agency, Inc.                                    1-908-231-0303