Barclay West

What Clients Are Saying. . .

Life Insurance & Long Term Care

Are you a newlywed or a new parent? Maybe it’s time to increase your life insurance. Need Long Term Care? We are the experts.

Life Insurance

Life insurance isn’t a fun thing to think about, and it may seem like an unnecessary expense. But if you have people that depend on you for financial support, then life insurance is really about protecting them in case something happens to you – your designated beneficiary would collect a financial benefit upon your death. Life insurance can be confusing, so here’s a rundown of the basics.

Types of Life Insurance

Term: This is the simplest and generally the cheapest form. You buy coverage for a specific period of time. It can usually be renewed, but premiums will increase based on age and health factors. There is no cash value.

All other types of life insurance are permanent, but there are several varieties. However, they all include a savings element that builds cash value, in addition to the death benefit. Once that cash value accumulates, it is accessible to the policyholder tax-free. The following are some of the common types of permanent life insurance.

Whole Life: You purchase this policy to cover your entire life, as long as you keep paying premiums. Premiums remain constant throughout the policy, and the company invests a portion of your premium which becomes the cash value. These are more expensive than term policies in the early years, but even out because the premium does not increase.

Universal Life: This policy is similar to whole life, but has the potential for higher earnings on the savings component. It is more flexible in terms of changing premiums and face value throughout the policy. There is usually a guaranteed return on the cash value. Downfalls include higher fees and the possibility of increasing premiums.

Variable Life: A variable life policy generally has fixed premiums, and you have control over the investment decisions for the cash value portion. However, this is riskier as there is not guarantee for the cash value.

How Much to Buy?

Many people decide this based on an income replacement calculation, between 5 and 10 times the amount of your current income. Also think about your personal circumstances: Is yours the sole income in your household? Are there other expenses, such as college tuition, that may arise in the future? Don’t forget to include potential medical and funeral costs. Above everything, you want to be sure your family does not get stuck with bills, debts or expenses that they cannot afford.

Why Purchase Now?

Buying life insurance may seem unmanageable right now, but it could be a smart decision. Unlike many other benefits, life insurance is actually more affordable right now than in the recent past. Plus, during this tough economic period, ensuring that your family will be financially secure in the future is more important than ever.

Key-Person Life Insurance

Most organizations employ at least one individual who is essential to the company’s success. This person may be a partner, owner, majority stockholder or another individual who is crucial to the business. If this person unexpectedly leaves the organization due to a death it may be hard for the organization to survive without the person who makes the business run smoothly. If your organization employs individuals who are vital to its success, key-person life insurance or key-person disability insurance can help protect your organization. These insurance solutions can give your organization options other than immediate bankruptcy should you lose the key person or people without warning.

Long-Term Care Insurance

Long-term care insurance is a growing trend in the employee benefits arena, being used to help attract and retain top performers. A recent survey revealed that 45 percent of companies now offer long-term care insurance to their employees as a voluntary benefit.

What is long-term care?

Long-term care (LTC) refers to a wide array of medical care, personal assistance and social support services for people who are physically or mentally unable to independently care for themselves for an extended period of time. This care is provided in a nursing home, assisted living facility or in one’s home. Individuals needing LTC require assistance performing basic activities for daily living or suffer from severe cognitive impairment. Generally, the disabilities requiring LTC are caused by accidents, illnesses or advanced age.

In addition to their excellent service, in 2010 Barclay West recommended and assisted with the implementation of a new regional medical carrier and achieved an overall annual premium saving of $92,000 for our 120 employees."

HR Director, Sacramento, CA

Regional Bank