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Be Prepared for Retirement Costs

“In this world, nothing can be said to be certain except Death and Taxes,“ Benjamin Franklin once said.

As long as you are still breathing, the government will tax you and will continue to find new ways to keep taxing you. Enter the Washington State Long-Term Care Trust Act. With the passage of this law, it forces every Washington state citizen to have some form of Long-Term Care Insurance starting January 1, 2022. Comply, or you will be taxed.

I don’t have Long-Term Care insurance myself, but working in the healthcare field that cares for residents in Senior Living communities, I have come to feel the inevitability of staying in a nursing home, or any form of retirement community at some point in my life. After about 10 years working in this environment, I’ve experienced it firsthand: seniors moving in retirement homes whether they want to or not. The ones who have accepted their reality, the destiny of living in these kinds of communities, typically thrive better than the ones who are in denial.

As you get older, it’s inevitable to need some form of care whether it’s in a nursing home or your own home. According to the data gathered by the Administration for Community Living in 2020, close to 70% of people aged 65 will need long-term care services or support. Women typically need care for an average of 3.7 years; while men, for 2.2 years.

So, are you prepared to pay these costs? According to AARP, depending on where you live in the US, the cost of nursing homes ranges from $85,800 to $150,000 per year. As per the Association for LTCi’s Sourcebook published in 2008, 30% of nursing home stays are between 1-3 years, women stay an average of 2.6 years, and men, for 2.3 years. Now, if you were to stay at home and hire a caregiver—based on my experience working with homecare companies in Chicago and the neighboring area—the average cost of a caregiver at the time of writing is $25/hr., or around $300/day. With a rate of $300/day, it would cost you $159,000 in two years. Though that’s definitely a cheaper alternative to staying in a nursing home, it’s still a lot of money. But we are living longer and longer, aren’t we? So the likelihood of you staying in a nursing home or living with a full-time caregiver for more than 2 years is increasing. And then what? Will you be using up your retirement savings to pay for these costs? Discounting a major illness that will send you to hospital or an ensuing rehab stay, how much is going to be left in your retirement savings to pay for your day to day needs that could last you for your lifetime? What if you get disable and can no longer work, robbing you of the chance to even save for retirement?

I’d rather spend my retirement savings for a life of fun and leisure rather than use it up on healthcare and homecare costs. I’d rather be sipping wine and looking out the countryside in Tuscany, Italy, stroll down the cobbled streets of Granada, Spain, or lounge by the beach in Mactan, close to my hometown in the Philippines.

The amount of money that we would need to spend—just to get by when we retire—is a scary thought. And I have been preparing for that as much and as well as I can. I have my Roth and Traditional IRA, my 401k, and my life insurance to supplement these retirement accounts, with cash value that grows at the same rate that the stock market grows, yet doesn’t lose money when the stock market crashes.

I have a feeling that my wife will outlive me. When I’m gone, and our kids have their own families to worry about, the prospect of my wife staying in a nursing home seems like a certainty. That’s why we are getting her a plan that would pay for her long-term costs when the time comes, and still leave money behind to our children, plus the added fallback that if we change our minds, we can get our money back.

As for myself, though I haven’t really decided to get my own long-term care insurance yet—as there are talks that Illinois would soon follow suit and pass a similar law that Washington state passed—the government has helped make my mind up for me. If I were to get taxed and be forced into signing up for an LTC insurance, I’d rather get the best kind of plan that suits my needs, with all those benefits that I’ve mentioned above. If you want to know more about this plan, give us a call at (312)469-0016. Or fill up the form below and one of our consultants will get back to you.

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Preparing for the Two Things that Most People Worry About

There are two things that most people worry about: 1) Dying too soon, or 2) Outliving one’s savings.

The prospect of retirement might not seem very real to you right now. But working in retirement homes for almost a decade, I’ve seen the consequences the elderly have to suffer for not having enough money for retirement. Residents who can’t afford to stay in these retirement homes end up staying in facilities that accept Medicaid. But before they are accepted in these facilities, they have to give up everything to the point of poverty. And these places are not exactly like those commercials you see on tv for The Villages. The fear of finding myself in a place like this when I retire is very real to me. Certainly, I won’t send my own parent in a place like this.

Now, if you were to die tomorrow, you might also think that’s not a big deal. You might think, why would you care what happens to everything else after you pass away? When you’re already gone from this world, you’re already free from all the consequences of your actions or inaction, right? That might apply to some people. But what if you are married or have children? Or both? Yeah, you might already be sipping champagne on that big banquet table in the sky, but if you left behind a family, they would be the ones bearing the cost of what you left behind.

If you have a mortgage, a car loan, credit card bills, or any other debt, who’s going to pay for all of those when you’re gone? Who’s going to pay for your funeral expenses? What about the medical expenses that you might incur prior to meeting your ultimate fate, or the unpaid taxes that year, or the legal expenses related to your estate administration? If you have kids, wouldn’t you want to ensure that they have money for their college rather than have them get into debt for over a hundred thousand dollars?

Between either of these two scenarios above: whether you pass away too soon, or live a long, healthy life, there’s really only one product that you can get that would ensure that you are prepared for either scenario: a life insurance with cash value. I’m talking about a life insurance with cash value that grows as if you invested your money in the stock market, plus it also gives you a guaranteed death benefit if the unthinkable happens. It’s a win-win!

Now, let’s say you’ve been very responsible with your money. You don’t leave behind any debt or whatever burden to your family when you pass away. Would you still need life insurance then? Why not? Life insurance guarantees the legacy that you leave behind to your loved ones. It ensures that your spouse has enough money to comfortably live the rest of her life. It helps your kids get a good start in life so they have money that they can use to start building a brighter future. If you think about it, what is your purpose in life anyway? To live for yourself? Or to help others?

If you live in Illinois we offer you a free consultation. Just send us a message below and include your best contact number. A consultant will reach out to you. We have professional staff licensed by the state to help you. Or if you prefer, you may call us directly at 312.469.0016 or email us at sales@ascend99.com.

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How We Can Save from Long-Term Care Insurance (Updated)

We all grow old, and that is a fact of life. We will reach a point in our lives when we need someone to help take care of ourselves. These will usually happen when we approach sixty-five or older.

But how can we pay for it? One way to prepare for this eventuality is purchasing Long-Term Care Insurance.

What is LTC or Long-Term Care Insurance?

LTC is a kind of insurance coverage that allows for home health care, nursing home care, and adult or personal daycare for people ages sixty-five or older. It also includes people with disabling or chronic conditions that require constant supervision. It provides more options and flexibility than other public assistance programs, similar to Medicaid, which rarely covers LTC.

Key Points of LTC

It is a kind of private insurance for anyone with access to it and who can afford it.
It usually covers all aspects or parts of in-home care and assisted-living homes for people sixty-five years or older or with people with disabilities and chronic conditions that need care constantly.
Coverage for full home care is one alternative.
It covers expenses like a live-in or visiting caregiver, housekeeper, companion, private-duty nurse, or therapist up to seven days a week, twenty-four hours per day, up to the maximum of the policy benefit.
It provides more alternatives and flexibility than Medicaid.
Many LTCs cover only a specific dollar amount for each home-care visit or each day spent at a nursing facility.
Always read the fine print thoroughly when selecting the appropriate LTC to meet the best basic needs.

Understanding LTC Further

Many people are not able to care for themselves anymore, and some do not have family members to help them, so instead they purchase long-term care insurance to cover out-of-pocket costs. Otherwise, the funds to pay strictly for this will quickly be depleted.

It is best to shop around LTCs between the ages of forty-five and fifty-five, and it is less expensive when purchased around these ages. The best one chosen will be part of an overall retirement plan to protect from the burdens and high costs of extended healthcare.

Why is it Important to Get LTC this 2024?

Healthcare costs in the US are rising. Since medical expenses are increasing every year, LTC costs might be overwhelming. LTC offers a safety net, providing coverage for many services like assisted living facilities, in-home care, and nursing homes. By getting it now, we will be shielding ourselves from the potential financial upheaval that accompanies a need for extensive care in the future.
Life expectancy is increasing. In today’s modern times, there are advancements in healthcare that are contributing to an increase in life expectancy. While longer lives are proof of medical progress, it also emphasizes the significance of planning for potential health issues later in life.
LTC becomes more valuable as we live longer because it helps manage the cost related to extended periods of care. By getting LTC now, we’re proactively addressing the potential need for care in later years.
The healthcare landscape is constantly evolving due to emerging new technologies and treatments. LTC is adapting to these changes, offering more extensive services and flexibility.
Investing in LTC today will ensure our benefits from the latest healthcare advancements and position us to access cutting-edge treatments and services. Staying ahead of these developments through LTC can greatly heighten the quality of care we will get in the future.

How LTC Works

When we decide to sign up for an LTC policy, the insurance agent will ask us to complete an application and answer health questions. We may have to show our medical records and be interviewed in person or by telephone.

We will then select our preferred amount of coverage. LTC insurance policies are usually capped by the amount paid during our lifetimes or the amount paid per day.

Upon approval of the policy issued and coverage, we will start paying the premiums. Most LTC policies still provide eligibility for benefits for two out of six “activities of daily living” or ADLs, on your own or suffer from cognitive impairment like dementia.

The ADLs are:

Eating
Dressing
Bathing
Getting on or off the toilet
Getting in and out of a bed or chair
Caring for incontinence

When we want to make a claim and need LTC, the insurance provider will examine our medical documents and might send a nurse to evaluate us. Before our claim will be approved, the insurance provider must approve our LTC plan.

Most LTC policies will let claimants pay out-of-pocket for a certain amount of time like thirty, sixty, or ninety days before the insurance provider will start reimbursing them for the care, which is called the “elimination period.”

The insurance provider will begin paying out money after we are eligible for benefits and generally after receiving paid care for some time. Most LTC policies will pay a daily limit for care until reaching the lifetime maximum.

Some insurance companies provide shared care alternatives for couples when the two of them buy policies. It will let you share the total coverage amount, so we can draw from the pool of benefits of our partners if you reach the policy’s limit.

How Much Does LTC Insurance Cost?

Particular LTC insurance rates will depend on various factors:

Gender – Females typically pay more than males since they have a longer life expectancy and have more chances to make LTC insurance claims.
Health and age – The older a person becomes, the more health issues come and the more reason to pay for the policy.
Insurance provider – The rates for the same amount of coverage among insurance companies will differ, and it is for this reason we need to compare quotes from various providers to select the best and most affordable one.
Marital status – Married people will pay lower premiums compared to singles.
Amount of coverage – We will pay more for more coverage, like higher limits on the lifetime or daily benefits, cost of living alterations for protection against inflation, fewer restrictions on the type of care, and shorter elimination periods.

Things to Consider Before Buying LTC Insurance

Our financial situation – We will need to take a close look at our assets and spending first. Some have sold their second home, gotten a reverse mortgage, or downsized from a family residence. Others have arranged a longevity fund to cover LTC and other related expenses.
Review the full range of insurance alternatives – Talk to all insurance providers and financial advisors in our area and choose one who can put our overall financial plan into action.
Few ways to pay for the policy – Having a healthcare savings account (available only to consumers in select health plans) can cover our premiums, tax-free. We can also exchange an existing life insurance policy for an LTC policy.

How to Save on LTC

Tax advantages – LTC insurance has tax advantages once we itemize the deductions, particularly when we get older. Some state and federal taxes will allow us to count a portion of the entire LTC insurance premiums as tax-deductible medical expenses if they meet a particular threshold. The premium limits we can deduct will increase once we grow older.
Couples buying individual policies – Couples can qualify for “shared care” after buying individual policies. If one uses up the pool of benefits, one can use the partner’s pool.
Group policy – A group policy through our employer can be more affordable than an individual policy, especially if we have health issues.
Buy the right one – As mentioned earlier, we will need to shop around various insurance providers for the appropriate LTC insurance, this way, we won’t pay for something we don’t need in the future. It is best to purchase LTC insurance between the ages of 45 and 55 as part of our overall retirement plan to protect our assets from the burdens and high costs of extended healthcare.

The Bottom Line

As we adapt to new challenges and opportunities this 2024, giving priority to LTC is a smart financial decision. By investing in it, we will not only safeguard our financial well-being, but we’re investing in a future where the health and welfare of our loved ones are protected. We must ensure a comfortable future today and take control of our financial destiny.

Email us at sales@ascend99.com if you’re interested or call our professional financial advisor at 312-469-0016.

Transforming Your Money Mindset for Lifelong Success

By Cindy Aldridge

In the dynamic landscape of today’s economy, achieving financial success is a widespread aspiration. The cornerstone of such achievement is not just in the mechanics of money management but in the profound transformation of one’s financial mindset. Here, Ascend99 reveals pivotal strategies to revolutionize your perspective on finance, paving the path to prosperity. This journey of financial enlightenment also encompasses insights for new pet owners, ensuring a holistic approach to fiscal responsibility.

Challenge Limiting Financial Beliefs

The first step in altering your financial trajectory involves confronting and understanding deep-seated, negative beliefs about money. These limited views can be barriers to financial growth. To counteract these beliefs, drawing inspiration from successful financial stories and role models is beneficial. Observing their journey can provide valuable insights and encourage a positive reframing of your financial outlook.

Enhance Financial Literacy

Knowledge is a powerful tool in financial transformation. Dedicating time to understanding the nuances of budgeting, investing, and debt management lays a strong foundation for sound financial decisions. Reading financial literature, attending educational workshops, or consulting with financial experts can substantially expand your understanding and equip you with the necessary skills to navigate the financial landscape effectively.

Find Opportunities to Increase Income

Exploring new income streams through entrepreneurial ventures can dramatically enhance your financial well-being. Forming an LLC in Illinois offers limited liability protection and notable tax benefits. Such a step into business ownership can significantly boost your income potential. Additionally, it provides operational flexibility and simplifies administrative processes, making it an attractive option for aspiring entrepreneurs.

Set Financial Goals

Clearly defined financial objectives are the bedrock of successful money management. Establishing attainable goals and devising a comprehensive plan to achieve them is crucial. This plan should detail the steps required to reach these goals, including a realistic timeline and specific milestones, ensuring a structured approach to your financial aspirations.

Optimize Your Living Expenses

Reevaluating your living arrangements can reveal opportunities for financial savings. Assessing whether your current housing situation aligns with your financial capabilities is key. Exploring affordable housing options, going online for rental searches, and taking advantage of virtual property tours can aid in making financially prudent housing decisions without compromising on comfort or needs.

Create a Positive Financial Network

The company you keep can influence your financial perspective. Surrounding yourself with individuals who possess a constructive attitude towards money and success fosters an environment conducive to financial growth. Participating in networks and social groups that emphasize financial empowerment can provide support and inspiration, enhancing your journey toward financial excellence.

Manage Emotional Responses

Understanding the role emotions play in financial decision-making is vital. Emotional responses can often lead to impulsive or ill-advised financial choices. Cultivating emotional resilience helps in maintaining composure and rationality, particularly in challenging financial situations. This emotional stability is key to making thoughtful, well-considered financial decisions.

Streamline Document Management

Efficient management of financial documents is a crucial aspect of money management. Keeping essential documents in easily accessible formats, like PDFs, ensures prompt availability for various financial transactions. Organizing these records systematically not only saves time but also reduces stress during important financial activities.

The journey to transforming your money mindset is both challenging and rewarding. It entails a comprehensive approach encompassing the identification and reformation of limiting beliefs, enhancing financial literacy, exploring income opportunities, setting achievable goals, optimizing living expenses, nurturing positive financial relationships, managing emotions in decision-making, and efficient document management. For new pet owners, integrating these principles is equally important, ensuring preparedness for the financial responsibilities of pet ownership. Embracing these strategies equips you to navigate the financial landscape with confidence and achieve the success you seek.

Budgeting Should Be Number 1 in Your New Year’s Resolution List

It’s a new year this 2024, which means different things to different people. For the money-conscious ones, it entails being more economical with money and saving enough for a rainy day.

Of course, you should be able to pay for all your basic necessities like food, electricity, water, housing, health care, and insurance, and have enough left over for fun outings. However, some can inadvertently go over budget due to emergency circumstances, which is unfortunate but necessary.

This 2024, it’s time to turn over a new leaf and start to budget your money.

What is a Budget?

It is a plan for every dollar you earn from your job, what you have in your bank account, and your pocket. It represents financial freedom in your life without incurring stress. Here’s how you create and manage your budget:

How to Budget Your Money

You Need to Calculate Your Net Income

Net income (your take-home pay) is the foundation of an effective budget. It is your total earnings or salary minus deductions for employer-provided programs (like health insurance and retirement plans) and taxes. If you focus on your total earnings rather than net income could entail overspending because you might think you have more money than you have.

If you have an irregular income from working as a gig worker, contract worker, or freelancer, or are self-employed, you need to make sure to keep detailed and complete notes of your pay and contracts to help manage it.

You Need to Track Your Spending

Once you know for sure how much you make coming in, you need to figure out where it should go. Categorizing and tracking it can help you find out what you are spending more on and where it is easier to save.

You start by listing your fixed expenses, which are your regular bills (mortgage or rent, car payments, and utilities). Then, list down your variable expenses these are the kinds that change from month to month (gas, groceries, and entertainment). It is the part where you can cut back and save. Bank and credit card statements are great places to save since they categorize and itemize your expenditures monthly.

You can record your spending with anything at your disposal, like an app on your phone, a pen and paper, online templates, or budgeting spreadsheets.

You Need to Set Realistic Goals

Before you begin looking closely at the information you have tracked, list down your short and long-term financial goals.

Your short-term goals should take about one to three years to accomplish. They may include matters like paying your credit card debt and organizing an emergency fund.

Your long-term goals (your children’s education, saving for retirement, etc.) can take decades to achieve.

Identifying both can assist in motivating you to stick to your budget. This way, it will be easier to cut down on spending if you know what you’re saving for.

You Need to Make a Plan

This is the part where everything comes into place: what you want to spend and what you are spending. You need to utilize the variable and fixed expenses you collected to learn what you will spend in the coming months. Then compare them to your net income and your financial priorities. Think about setting specific and realistic spending limits for each expense category.

You can also further break it down by including things you want and things you need. For example, a monthly Netflix subscription can be regarded as a want. The differences will be crucial when you’re trying to find ways to redirect your funds to your financial goals.

After you have properly documented your earnings and spending, you can make any essential adjustments so you won’t overspend and have enough funds to put to your goals. Your “wants” category is the first part you can cut. For example, you can skip movie night and replace it by watching it at home instead.

You Need to Adjust Your Spending to Remain on Budget

After doing it, the next category you need to take a closer look at is how much you spend on monthly payments. Once done, you will find out that a “need” is difficult to part with.

If your calculations don’t add up, then the next category for adjusting is your fixed expenses. For example, you can save money by shopping around for a less expensive rate on homeowners or auto insurance. If you do this, you need to be careful and weigh your options since these kind of decisions come with a big trade-off.

Don’t forget that even small savings will add to lots of money, and you may be surprised at how much you’ve saved by making one tiny adjustment.

Try the 50/30/20 Rule

The 50/30/20 Rule came from a book written in 2005 called, “All Your Worth: The Ultimate Lifetime Money Plan,” by US Senator Elizabeth Warren and her daughter, Amelia Warren Tyagi.

It is a straightforward method for monthly budgeting that informs you on exactly how much to go to your costs of living and savings. As a guideline, you need to divide your earnings into three categories: 50% goes to your needs, 30% to your wants, and 20% to paying off debts or savings.

However, you only need to use it as a guideline. The exact amount for each category will still depend on many factors like your cost of living, financial situation, inflation, etc.

Conclusion

You need to review your budget regularly, and once it is set up, it is essential to review it and your spending habits regularly to be sure you’re on the right track.

Make sure to follow these steps and get into the habit of checking it often.

Email us at sales@ascend99.com for any questions.

The Gift of Life Insurance

Christmas is almost here, and it’s nearly time for our family to get together once again. Some may have personal issues with each other or difficulties they’re trying to overcome, but one thing is still true: we are there to love and support them, no matter what happens. Family is the tie that binds us forever. They are there at the beginning of our lives and stay with us until the very end.

To honor this familial bond of fellowship, we give gifts to make them feel special and loved. What better way to demonstrate this than the gift of life insurance?

Five Reasons Why Life Insurance is a Wonderful Gift

Life insurance is indispensable in today’s modern times. It’s not only a great gift to give ourselves but to other members of the family. It is a way to provide us with security, safety, and protection.

It provides peace of mind – Young and new families alike will appreciate the gift of life insurance since they frequently have tight budgets, often live paycheck to paycheck, and are not able to save enough money from their income. Life insurance will minimize any stressful feelings of uncertainty and give some peace of mind that our lives will go along as planned even though injuries or unexpected illnesses may happen.
It ensures the future of our family – Life insurance is a great way to lighten the load, so to speak. It will take care of the remaining family members after the policyholder passes away. It will bridge the financial gap until they are well on their own.
It is affordable – A term life insurance policy is quite affordable and like many other policies, can be converted at a later time to a whole life insurance policy.
A term life insurance policy allows for protection for a new family, particularly when this family does not have the financial resources to go back to once an unexpected death happens. These policies pay for the death benefit without taxation, thus granting the remaining family members the ability to pay the bills, keep their homes, and pay for their needs.

It builds equity – A whole life insurance policy becomes a useful entity as time passes. It is better and more superior than term life policies, but the premiums are more expensive.
It helps in dealing with financial obligations – A life insurance policy will pay off any financial obligations like auto loans, outstanding mortgages, or any other debts incurred. It will also help in paying funeral costs and provide the remaining family members with a fresh start.

Find Out About Different Options

Different types of insurance policies have different objectives, and it is crucial not to rush and be pragmatic in selecting the right one as a Christmas gift.

Setting particular objectives for what is needed in an insurance policy is essential. Once we’ve worked out any perceived flaws, we can discuss any alternatives with a financial advisor who can assist in selecting the most suitable insurance policy. We should also consider the possibility that we will need more than one policy to accommodate all our requirements.

Conclusion

While life insurance can be an unusual Christmas gift, it will be appreciated. It will show that we care for them and want to make their lives easier. To get the most out of it, a professional financial advisor can help select the most suitable one.

Email us at sales@ascend99.com for any questions.

Happy holidays! 🎅🎁❤️

Talking about Financial Planning During Thanksgiving

It’s almost Thanksgiving, and it’s just about time for you and your extended family to get together for Thanksgiving dinner. Mind you, not all conversations at the dinner table are going to be noteworthy or remarkable. There might be uncomfortable moments with some family members who have controversial political beliefs or outrageous lifestyles, but family is family, and you have no choice but to be polite, smile, and nod. They are your family after all and you have to stick by them no matter what.

One topic of conversation may not be controversial but may raise a few eyebrows and induce annoying eye-rolls: financial planning. No one might want to talk about money matters at the dinner table, but it is the best time to do it.

Look at it this way: conversations about money can be a great way for you and your family to share financial values and support one another in building positive financial habits. It might even bring you closer together.

Here are some topics you might want to talk about at the Thanksgiving dinner table:

Where Everyone Stands Financially

Organizing your finances might be a touchy and somewhat confusing topic to talk about, but it is important to know where each family member stands with their finances.

There are easier and quicker ways to find out to get an initial overview like checking on credit scores. There are websites dedicated to it where you can get instant reports. Credit scores can help creditors know whether to give you credit or not, the interest rate you pay, or decide on the terms they offer.

Having a high credit score can benefit you in many ways like making it easy for you to rent an apartment, get a loan, or lower your insurance rate.

By knowing this information, you will have a better understanding of your finances and be able to make adjustments for the coming year.

Reflecting on the previous year’s budgeting is crucial to find out where you have gone wrong and which part needs improving. This way, you can see where you did right and do the same thing next time around.

Estate Planning

This is about what will happen to a person’s assets following death, and it might be a difficult subject to talk about. Mulling over wills and assets with your family during Thanksgiving dinner might be an uncomfortable subject matter, but it is the right time to clarify that you or your aging family members have the proper documents in place to protect your personal or financial affairs. You can either do your research or consult a professional financial advisor, which is always a better option.

It is essential to properly communicate one’s wishes to loved ones so that no one gets hurt or surprised once the day comes when someone in your family dies and assets will have to be divided up.

Savings and Wealth Management

Financial planning helps you handle your funds efficiently and strategically so you can spend on the things you only need, like a roof over your head. It can also aid in building up your wealth so you can turn long-gestating dreams into reality.

A solid wealth management plan can help you grow, preserve, and enjoy your wealth. While not everyone will need it, it can deal with additional financial factors like charitable giving plans and more complex tax planning.

A comprehensive financial plan needs these components to function efficiently:

An investment strategy – It refers to how you can grow your savings while staying within your risk tolerance
Cash flow – It refers to the amount of cash coming in and going out of your accounts
Retirement planning – It refers to how you can have a comfortable retirement

Identifying the Gaps

Having an extensive financial plan enables you to take a good look at the whole financial picture. It will help you mitigate risks that can cause stress. The last thing you want is to have your money swept away because you’re late to realize that your investment strategy or insurance policy was a bad fit for you.

By analyzing each piece of the financial puzzle, like your investment plans, income, or debt, you can see where you’re doing well and where you could do better. You are giving yourself the gift of financial clarity.

Expect the Unexpected

Life can throw you unexpected curveballs, and it can happen while you’re planning and preparing Thanksgiving dinner. Mishaps might happen: the turkey might be undercooked, the dog might get to the food, or someone might accidentally turn the oven off. The same thing can happen to your financial plan.

For this reason, it is crucial to have a backup plan where you can have easy access to an emergency fund. Being able to tap into savings is the backbone of a secure financial plan.

Conclusion

It is not unusual for extended families to talk about uncomfortable topics when getting together for Thanksgiving dinner, and the subject of finances does not need to be one of them.

Get the conversation going, and Ascend99 Inc. is here for you. Email us at sales@ascend99.com if you’re interested.

Why is it Important to Know About Disability Insurance

You might think that not knowing about disability insurance, or any type of insurance for that matter, isn’t beneficial to your day-to-day life and just go on living in some kind of innocent bliss. But you’re wrong since insurance or more importantly, disability insurance, is one of the most important things to learn about if you’re either a blue or white-collar worker, and this information can potentially save your life in the future.

What is Disability Insurance?

In essence, disability insurance is a kind of insurance coverage that allows for financial gain in the circumstance the policyholder is unable to work and earn money due to a disability caused by illness and injury. It is a binding contract with an insurance company to pay a particular monthly amount while you are unable to work because of the disability.

Disability insurance is a tried and true and effective way to protect a part of your income. This way, you can maintain with the lifestyle you are accustomed to.

How Does Disability Insurance Work?

Most of the time, an insurance product will protect against a particular loss, similar to when a property and casualty insurance plan compensates the policyholder for the amount of stolen property. However, for disability insurance, the compensation incurred relates to the lost income caused by the sickness or injury.

Based on a national survey, one in four workers will become disabled during the time they are working, and one out of eight will have a long-term disability that lasts about five years.

There are Five Basic Features of every disability insurance policy, whether it is short or long-term:

1. Premium – Refers to the amount you or your employer will pay for the policy and is based on factors like the type and length of coverage, health, etc.

2. Benefit – Refers to the amount you receive each month when you aren’t working due to a disability and should be between sixty to eighty percent.

3. Benefit period – Refers to the length of time you can receive benefits.

4. Waiting period – Refers to the period after you are disabled until you begin to receive benefits.

5. The meaning of the disability – Each disability insurance policy has a particular definition of what it is to be disabled to be qualified for the benefits.

Disability is a risk all workers will have to face at one point in their working lives, regardless of their employee rank and if they can’t work due to various illnesses or injuries, their earnings will also be at risk.

Why is it Important to Know About Disability Insurance?

If you’re either an office worker or manual laborer, an entrepreneur or a business owner, accidents, injuries, or illnesses can happen, and you can’t always anticipate them. It is the main reason why it is necessary to get disability insurance to help pay for your bills and expenses in case something happens to you that prevents you from working. This way, you won’t worry about precious money coming in to spend for you and your family.

Conclusion

Disability insurance is a beneficial alternative in today’s increasingly uncertain times. It will provide a financial guarantee that you and your family are well taken care of, while you focus on being healthy again.

Email us at sales@ascend99.com if you’re interested.

Why You Need to Get Supplemental Disability Insurance

If you are among millions of people living and working in the USA who unexpectedly couldn’t work due to an injury or illness, the last thing you need to be concerned about is how you can pay your bills without an income.
If you are the type of person who depends on your salary for everyday needs for you and your family, you will need more protection by including additional insurance coverage on top of your individual disability or group long-term plan.

What is Supplemental Disability Insurance?

Supplemental disability insurance is a way to bolster your disability insurance coverage provided by your job. Any disability insurance included in your benefits package covers part of your income when you become injured or sick for a long period. This kind of insurance policy is usually reserved for severe injury or illness like a heart attack, back injury from a vehicular accident, or serious mental health problems.

Its Limitations

Most disability insurance plans provided through employment cover only forty to sixty percent of your salary. It will be disadvantageous when you can’t work for a long time and you won’t be able to pay for your daily expenses with only half of what you’re currently earning.
One alternative is social security disability, but only if you qualify for benefits. However, the process takes a long time, leaving you without money to spend for that period.

Why is it Helpful?

Supplemental disability insurance helps close this gap by offering another layer of financial support if you’re unable to work. Supplemental coverage is also a personal plan, meaning it’s not tied to your employer, so you can take it with you from job to job.
Supplemental disability coverage helps cover the lack of funds by providing another layer of financial aid if you cannot do your job. It is also a personal plan that isn’t tied to your employment. This way, you can take it with you from one job to another.

What are the Two Types of Supplemental Disability Insurance?

1. Short-Term Supplemental Disability Insurance
° You will pay a monthly premium and then submit a claim to your insurance provider when you will need coverage.
° You will need to provide proof of your illness or injury to your insurance provider that you are unable to work.
° It has a seven to thirty-day waiting period.
° It usually takes fourteen days before the coverage kicks in.
° Benefits range from three, six, or twelve months depending on the type of plan you’ve selected.
Most plans cover between forty to sixty percent of your lost wages.
2. Long-Term Supplemental Disability Insurance
° Similarly, you will pay a monthly premium and then submit a claim to your insurance provider when you will need coverage.
° You will likewise need to provide proof of your illness or injury to your insurance provider that you are unable to work.
° Before coverage kicks in, there is typically a ninety-day waiting period (or elimination period) that can be shorter or longer depending on your coverage.
° Your coverage can last for two years or until you retire, which will depend on your type of plan.
° Most plans cover between sixty to eighty percent of your lost wages.

Why is it Sensible to Get Supplemental Disability Insurance

Based on a CD (Confidence Distribution) statistical survey, the chance of a typical person being disabled in a lifetime is twenty-five percent or one out of four. And more than sixty percent of disabilities are not caused by accidents but by illnesses.
1. When you are at the proper age to work – Getting injured or sick doesn’t only happen to older people, it can happen to anyone. According to the Social Security Administration, twenty-five percent of the twenty-year-olds of today will be disabled before reaching the age of retirement.
How old you are will help you decide if you should get short-term or long-term insurance. If you plan to retire shortly, a short-term insurance policy might be more beneficial for you than one that lasts five or more years.
2. If the insurance plan provided by your work isn’t enough – if your work insurance coverage only provides sixty percent of your income, it wouldn’t be enough. The group disability insurance plan is taxable if they have coverage. However, they will reduce the percentage of the income covered.
If your work only has short-term coverage and goes over the permitted timeframe, you won’t get any money at all. You have to make sure to get the additional benefit through supplemental insurance that can cover lost earnings.
3. If you want a consistent flow of money coming in – Your work may provide you with disability insurance, but it is not a required benefit and some employers don’t even provide it to their employees. Some employer-sponsored plans only have short-term coverage, and you won’t be able to get long-term coverage when you want to.
It is best to hold your own disability insurance since it will make sure you have coverage throughout your many years of working.
4. If you want to customize your benefits – The insurance plan provided by your work may not have your preferred benefits and features, so it is best to have your own supplemental disability. Insurance. This way, you can choose the coverage that benefits you.
5. If you are a stay-at-home mom or dad – A parent staying at home can work and earn money through numerous means and if he or she gets hurt, supplemental insurance is useful to help cover the cost of child care and other responsibilities.

What are the Types of People Needing Disability Insurance?

1. Sole providers – if you are the sole breadwinner of the family, disability insurance will help protect your earnings so you can focus on getting well from your injury or illness.
2. People with recurring injuries – If you are struggling with recurring physical problems like back problems, disability insurance is beneficial for you. It can act as a safety net when you can’t work for a long time due to physical or medical issues.
3. Employees working in physically demanding jobs – if you work in a physically demanding job like in construction or physical therapy, you will need disability insurance. Your employer might offer a group plan, but an individual plan can provide financial support beyond the worker’s compensation plan.
4. Parents – If you have young children who depend on your earnings, you will need disability insurance since its coverage is designed to provide funds if you can’t do your job due to an injury or illness.

Conclusion

In your younger years, you might think you won’t need supplemental disability insurance on top of your insurance plan. However, once you grow older and have a family, you will discover that you need additional protection through supplemental insurance.
A professional financial advisor can help you go over your options and find the most beneficial one that fits your needs.

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Disability Insurance: What Is It and How It Can Protect You

There may come a time in your professional or business life when you get hurt or sick which prevents you from working to earn money for your family. Before this happens, you must purchase disability insurance to provide them with a safety net that guarantees financial security.

What Is Disability Insurance?

As the name implies, disability insurance is a kind of insurance product that allows for financial gain in the circumstance the policyholder is unable to work and earn money due to a disability caused by illness and injury.

The US government provides disability insurance through the Social Security System, which is run by a federal agency called the SSA (Social Security Administration). They provide retirement and survivor benefits, and income for workers living and working in the US who have become disabled.

Who Is Disability Insurance For?

Disability Insurance is for workers who depend on the income they make through work to pay for their expenses. It will assure them of receiving payment if they get sick or injured.

Why Is Disability Insurance Essential?

Accidents, injuries, or illnesses happen, and you can’t always anticipate them. It is the main reason why it is necessary to get disability insurance to help pay for your bills and expenses in case something happens to you that prevents you from working.

How Does Disability Insurance Work?

Most of the time, an insurance product will protect against a particular loss, similar to when a property and casualty insurance plan compensates the policyholder for the amount of stolen property. But for disability insurance, the compensation incurred relates to the lost income caused by the sickness or injury.

For instance, if a worker has annual earnings of fifty thousand dollars before becoming disabled and the disability hinders him or her from continuing working, the disability insurance will compensate for the portion of the lost income, provided that he or she qualifies.

The policyholder for government-sponsored disability insurance (like the US Social Security System) must comply with the many conditions to receive compensation.

To qualify, he or she must prove their disability is so severe that prevents from doing any kind of work at all.

The Social Security System also requires the policyholders to establish that their disability is expected to last for at least twelve months or lead to death.

In direct contrast, some private disability insurance plans only need the policyholders to demonstrate they can no longer engage in the same kind of work they were previously in.

What are the Types of Disability Insurance?

Short-term – It has a waiting period of zero to fourteen days with a maximum benefit period of no longer than two years.
Long-term disability insurance – It has a waiting period of a few weeks to a few months (depending on the adeptness of the insurance company) with a maximum benefit period that ranges from a few years to the rest of your life.
Individual – It is ideal for people who don’t receive disability insurance through work. It is also another alternative for high earners wanting extra coverage. You can get this on your own and stays with you if you change jobs.
Group (through work) – It is an employee-sponsored coverage through work. Most employers that provide disability insurance pay some or all premium costs. You have the option of buying it through work, and some employers do not pay for it but offer it as a voluntary benefit, which will let you buy coverage through their insurance broker at a group discount.
Supplemental – You have the option to add extra coverage on top of your long-term disability insurance plan if you want more protection. Supplemental disability insurance can be a beneficial add-on for employees who want to protect a bigger percentage of their earnings.

Two Different Protection Features of Disability Insurance

Non-cancelable – It means the insurance policy cannot be canceled by the insurance provider.
Guaranteed Renewable – It can give you the right to renew the insurance policy with the same benefits and not have it canceled by the insurance provider. Yet the provider has the right to increase your premiums as long as it does as well to all other insurance policyholders in the same rating class as yourself.

How Much Will Disability Insurance Cost?

There are a few factors that will impact the amount you will pay:

Age – If the applicant is young, it will mean lower payments and more financial leverage, since there are fewer premiums to achieve payouts.
Benefit Amount – The amount is relative to your current income.
Benefit Period – The duration your insurance provider will pay your benefits.
Health History – Your family history will have an impact on the cost.
Elimination Period – It is the time after you become sick or disabled that you begin to receive benefits.

Other Options to Consider When Purchasing Disability Insurance

Coordination of Benefits – How many benefits you will receive from your chosen insurance provider will depend on your preferred policy due to your disability. Your policy will specify a target amount you get from all the combined policies, so the policy will constitute the difference not paid by other policies.
Additional Purchase Options – Your chosen insurance provider will give you the right to purchase additional insurance later.
Residual or Partial Disability Rider – This option allows you to return to work on a part-time basis, receive partial disability payment, and collect a portion of your salary if you are partially disabled.
Waiver of Premium Provision – This option means you would not have to pay premiums on the policy after you have been sick or sick or disabled for ninety days.
Return of Premium – This option requires your chosen insurance provider to refund a portion of the premium if no claims are done for a particular period declared in the policy.

Conclusion

Disability insurance is a useful option in today’s increasingly uncertain times. It will provide a financial guarantee that your family is well taken care of, while you focus on getting healthy and be in tip-top shape again.

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Protected: Looking the Part is Winning Halfway

What Is an Annuity and How Does it Work?

When an average layperson hears the word “annuity” for the first time, a confused expression more than likely forms on his or her face, and rightfully so, since it sounds like a technical term only utilized in professional circles.

For the most part, it is. An annuity is often used when an insurance agent explains it to retirees as a viable option that aids in income management upon retirement and also handles the risk of outlasting their savings.

What are Annuities?

Simply put, an annuity is an insurance contract issued by a particular financial institution that allows the insurer to make payments to you, the annuitant. It intends to pay invested funds to you in a guaranteed and fixed income stream whenever you decide to retire. The payout will be given either as a series of payments or as one lump sum.

What are Other Reasons to Purchase Annuities?

Besides the main reason mentioned above, there are other provisions:

As a death benefit – When the annuitant dies before the start of receiving payments, the person named as a beneficiary will receive a specific payment.
As recurring payments for a particular amount of time – It can happen for the entire remaining lifetime, or the spouse or a designated person.
As tax-deferred growth – The annuitant does not pay taxes on the investment gains and income from the annuity until the money is withdrawn.

What are the Different Types of Annuities?

There are three kinds of annuities:

Fixed annuity – The insurance provider will promise annuitants a minimum interest rate and periodic payments in a fixed amount. The fixed annuity is strictly regulated by state insurance commissioners, which you should check in your particular state for benefits and risks. This is done to confirm that the insurance provider you are interested in is registered in your state to sell insurance.
Variable annuity – The insurance provider will allow annuitants to direct their annuity payments to various investment alternatives, which usually are mutual funds. Payouts will deviate depending on the amount put in, expenses, and investment returns. The Securities and Exchange Commission (SEC) regulates variable annuities.
Indexed annuity – An indexed annuity combines the attributes of insurance products and securities. The insurance provider will credit you with returns based on a stock market index, similar to Poor’s 500 and Standard. State insurance commissioners regulate Indexed annuities.

How Do Annuities Work?

The most basic thing about an annuity is that it works by converting an insurance premium into a stream of payments. The duration of the payments and amount will depend on different factors like the premium amount, annuity type, the selected payout alternative, and the age of the annuitant.

Annuities are not short-term investment strategies and can be optimized for long-term growth or a particular income. Most types provide income through an annuitization and accumulation process. One exception is an immediate annuity (payout is straightaway) that will start paying out early within a month of purchase without an accumulation phase needed.

If you prefer a deferred annuity (payout at a later date), you will pay a premium to an insurance company. Throughout the accumulation phase, the initial investment will increase tax-deferred, generally from five to thirty years based on the term of the contract. During the distribution (annuitization) phase begins, you will begin receiving regular payments, based on the contract terms.

Your annuity contract transfers the risks of a down market to the insurance provider, which makes you, the annuitant, protected from market and longevity risk. To offset the risk, your insurance provider will charge fees for administrative services, contract riders, and investment management. Additionally, most annuity contracts include surrender periods, which means you cannot withdraw money from the annuity without obtaining a surrender fee.

Moreover, insurance providers typically impose spreads, caps, and participation fees on indexed annuities that each can reduce returns.

Different Annuity Phases

When you have selected a particular annuity ideal for you, it goes through various periods and phases:

Accumulation phase – It is the period before the payout begins and your annuity is funded, and during this stage, the money you’ve invested grows on a tax-deferred basis.
Annuitization phase – It will happen once payments begin.

What Are Other Features of Annuities?

As annuity riders (A provision you can include to your annuity contract to make sure you will meet your financial needs)
As commissions and fees
As death benefits
As living benefits
Taxation
Free lock period

Various Annuity Fees and Charges

Annuity fee – This fee varies generally due to the type of annuity and the insurance provider. Most don’t charge an annual fee but include commissions in the contract.
Annuity surrender charge – A deferred annuity usually has a surrender charge. It is similar to an early withdrawal penalty on a certificate of deposit, and each annuity contract has a different surrender period, ranging from two to ten years.
Variable annuity fee – This type is included in the most complex contracts and requires the insurance provider to manage multiple subcontracts that are invested in the annuity premium. Common variable fees are administrative fees, mortality and expense risk charge, penalties, underlying fund expenses, rider fees, and charges.

What are the Benefits of Annuities?

It enables the investor to save money without paying taxes on the interest until later.
It creates a steady income stream upon retirement.

Conclusion

Are annuities good investments? To determine this, you have to think about your personal investment needs and goals. Furthermore, you should consider your age, lifestyle, and risk tolerance. This way, you would get the best annuity for you.

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