In order to have a financially secure future, it is important to have the proper insurances in place to manage contingencies. The Dover Group has an insurance brokerage department that can assist in helping a client secure needed protection primarily in the areas of life insurance, long-term care and disability insurance. As brokers, we have the ability to “shop the market” and make sure the client is getting the very best deal for their needs.
When it comes to families, life insurance has two primary purposes: to create an estate and/or to preserve an estate.
Families often use life insurance to “create an estate” when they have young children who will be financially dependant on them for several years. The purpose of the life insurance is to cover immediate cash needs, such as paying off a mortgage or other debts, establish college funds and to replace a portion of the lost income of the deceased spouse. Families with a special needs child often use life insurance to make sure the child will have adequate financial security as well as to equalize the inheritance among other children. This same concept is commonly used in family businesses where one child is involved in the business and other children are not. Life insurance provides the funds to equalize the inheritance to the siblings who are not involved with the business so the business can pass to the child who is involved.
Those with larger estates will often use life insurance to “preserve the estate” as inheritance taxes can significantly reduce what is left to their heirs. If they are charitably inclined, they might create a "zero tax plan" leaving the majority of their estate to charity and use life insurance to provide for their families. Life insurance properly owned in an irrevocable trust can play a powerful role in preserving an estate. There are several different types of life insurance. We can help you determine which type of coverage is appropriate given your specific situation.
Long-Term Care Insurance
As we move into our retirement years, a major risk that can jeopardize our financial security is a long-term care need. As medical technology continues to advance, disabilities are lasting longer than they did in the past. The typical nursing home in the northeast is charging $12,000 to $14,000 per month. However, most people getting help today are in their homes with home health care rates averaging $25 per hour. Long-term care insurance can help minimize the risk of your assets from being depleted from a costly long-term care need.
There are many different policy options and this insurance is not appropriate for everyone. We can help you determine if long-term care insurance makes sense to consider and if it does, how to best structure the plan to fit in with your unique financial situation.
For those who have not yet reached their retirement years, disability insurance is critical in ensuring that a portion of your income will continue if you are disabled. Without disability insurance, you will need to rely upon your own resources to meet your day-to-day living expenses, which may not be sufficient.
If you have a plan provided through your employer, it is important to understand the differences between group and individual plans and possibly supplement the group coverage.
Medicare and Medicare Supplement Insurance
Medicare is health insurance coverage for most people who are age 65 and older. Medicare Part A is free and covers most charges associated with hospitalization. Medicare Part B costs $104.90 per month (2016) and covers charges associated with outpatient services and doctor services.
Both Parts A & B have deductibles and co-insurance levels that require a person to share the costs with Medicare for their medical treatment. This is why most people on Medicare will purchase Medicare supplement insurance (either a Medicare Advantage plan or a Medigap plan) to minimize these out-of-pocket costs. You may also need prescription drug coverage. We have significant experience in helping clients research and select the best coverage for their needs.
Auto, Home and Umbrella Liability Insurance
As part of the financial planning process, we will review your liability coverage levels to make sure you have adequate protection. We often find that people do not have umbrella coverage. This important protection helps safeguard your assets (up to a certain limit you establish) in the event of a lawsuit.