Assignment 3:
Life Insurance is a mandatory life policy that one needs to procure. It can be defined as a contract between an insurance policy holder (the insured) and the insurance company (insurer), where the insurer undertakes to pay a sum of money plus the interest accrued to the insured’s beneficiaries upon their death, in exchange for premiums. This article will discuss the life policy with specific reference to endowments, disability insurance, retirement annuities and income protection.
Life Policy:
The life insurance policy certifies that one’s dependents are financially secure in the event of the insured’s death or disability. The life policy substitutes the insured’s income with a lump sum, enabling the dependents of the insured
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For example, if one needs to recover from surgery and is not able to work for weeks or a few months, the disability insurance will kick in and pay the insured a monthly income replacement.
After 6 months, the short-term insurance coverage will expire and thereafter one will need long-term disability insurance cover, if they are still unable to work. Long-term disability insurance will cover around 60% of one’s income. This coverage can last for years or up to the age of 65, if not their entire life, depending on the policy. The coverage will end once the insured returns to work. For example, if the insured undergoes a surgery to remove a tumour and cannot work for 9 months, long-term insurance will kick in after 6 months, thus it is also crucial to have short-term disability insurance.
The benefits of disability insurance include the protection of the insured’s income to pay for monthly bills, dependents’ expenses, daily necessities and evade unsolicited situations such as bankruptcy, in the event that the insured is unable to work.
Income
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When the policyholder cashes out, they will receive a lump sum or fixed payments for a specific length of time or the rest of their life and these amounts are tax deductible.
The benefits of a retirement annuity include having a secure income to lead the same standard of life, once the insured has retired. The money invested in the annuity is tax-free with no capital gains or income tax on the insured’s investment returns. The amount invested is compounded annually with substantial long-term growth. This insured is able to save in a controlled manner as one cannot access this annuity until the stipulated age of retirement or death, where the annuity will pay out the funds and provide an income to their dependents.
A retirement annuity is distinct from a pension fund as one does not need to invest a fixed portion of their salary, but rather a flexible and more affordable amount that one chooses. The policyholder can choose their fundamental investment and the allocated amounts with a diversified portfolio, whether it be offshore, bonds or
6.8. Client and Broadspire agree to the following terms for Arkansas insured workers’ compensation claims; (i) Broadspire is acting on behalf of the insurer for the payment of claims both within and in excess of the deductible; (ii) Broadspire shall periodically provide accurate and timely data to the Client’s Arkansas workers’ compensation insurance carrier (“Carrier”) on all claims paid from “first dollar”; (iii) the Carrier shall immediately replenish the Loss Fund Account if it is not replenished timely by the Client and shall bill the Client for such amount; and if the Loss Fund Account is funded by the Client, Broadspire must notify injured workers that the claim is being adjusted and will be paid on behalf of the Carrier; (iv) the
Jackson National Life sells three types of annuities, variable annuities, fixed index annuities, and fixed annuities. According to Jackson National Life, variable annuities are, “long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value” (Products, n.d.). There are three variable annuity options for customers to choose from, Elite Access, Perspective Adversary, Perspective II. Fixed index annuities according to Anunityfyi.com are, “a type of annuity that grows at the greater of an annual, guaranteed minimum rate of return; or the return from a specified stock market index reduced by certain expenses” (Equity Indexed Annuities, n.d.). Jackson National Life has four fixed index annuities to choose from, Elite Choice, Elite Choice Rewards, Select Annual Reset, and the Jackson Ascender Plus Select option.
Cerebral Vascular Accident Case Argument for Social Security Disability Income Determination I evaluated the following case study from Medical, Psychosocial and Vocational Aspects of Disabilities the fourth edition, Brodwin, Siu, Howard, Brodwin, & Du (2014) and presented a case argument including a vocational argument in favor of La Shaun Jackson’s award for Social Security Disability Income (SSDI). “La Shaun Jackson is a 59-year old African American widow with an adopted 15-year old boy who has a record of substance abuse and juvenile delinquency. She has worked as a Claims Processor for the Internal Revenue Service (IRS) in Fresno, California for over five years. Prior to returning to school to earn her Associates of Arts Degree in accounting,
More than 40 years ago a pension was the best form of assurance for a financially happy life after retiring. In 2016, the Central States Pension Fund forecasted that it will run out of money in the near future. To potentially stop the fund from running out of money, it has proposed cuts to current and future pension payments. These cuts will affect not only thousands of workers, but could affect millions. As the director of the Central States Pension Fund it would be best to push for cuts on pension payments.
Medicare is our country’s health insurance program for people ages 65 and older. Certain people younger than 65 can still qualify for Medicare, including those who have disabilities. In 2006 there were over 38 million people receiving Medicare benefits in the United States. Blue shield is a form of Medicare. Blue shield is a health care that is in the U.S. and Canada.
These types of care are covered when deemed medically necessary during a benefit period that begins when a patient is admitted as an inpatient in a hospital or skilled nursing facility and ends when they haven’t received care for 60 consecutive days. Each time a patient receives care during a new benefit period, the beneficiary must pay the inpatient deductible and copayments for all services during that beneficiary period. The duration of the benefit period determines the amount of deductibles and copayments and is due by day 60. The benefit period provides coverage up to 90 days, after which, a beneficiary who still needs care can use their nonrenewable lifetime reserve of up to 60 additional days of inpatient hospital care. After a beneficiary has exhausted all of their care days, whether they use the covered 60 days or have exhausted their additional lifetime reserve, they are responsible for all costs associated with additional care for that benefit
The Youngers are a poor African-American family living on the South Side of Chicago. An opportunity to escape from poverty comes in the form of a $10,000 life insurance check that the matriarch
Future of Life Chapters 6-7 Daniel H It Says/Quote: “When the great forest is gone, possibly by 2020 at the present rate of cutting, there will be no more jobs. Land cut over in the region is mostly abandoned, and poverty within it is greater than before.
Hi Al, long-term care insurance is design to pay for nursing homes and home health care. The insurance provides adequate cost-benefit from the increasing cost that associated with health issues such as chronic and Alzheimer’s disease, strokes and those can no longer live on their own. Overall, purchasing long-term care is meant to protect you against the financial consequences of the high cost of increasing life expectancies and the resultant rise in the chance that you may eventually need some level of care. Moreover, it is important to obtain this type of policy while you are healthy enables you to receive health discounts in addition to marital discounts if you are married. With that being said, if you are in good health you can save up
Dementia care may also be covered under long-term care planning. Long-term care insurance can help you save a lot of money. Many people who do not have long-term care insurance are forced to exhaust their assets. However, you can protect your assets by getting long-term care insurance. It is important to note that most people will require some form of
A country’s social security system is very important, as it directly relates to the happiness and wellbeing of its citizens. During this time period, Canada’s social security system advanced greatly, specifically with the Canadian Pension Plan and the Medical Care Act. Although an Old Age Pension Act was already introduced in 1927, this program only provided benefits for seniors who had an annual income that was less than $350. With the economic improvement following World War 2, seniors faced the problem of inflation because their pensions were tied to minimum income levels rather than the cost of living. In 1951, Louis St. Laurent fixed this issue by introducing the Old Age Security Act and Old Age Assistance Act, the first pensions that
Some people are at a ton of risk, such as being old or having a history of poor health. These people in poor health are more expensive to cover simply because they hold more risk for the insurance company as they require more
The question is; which option should I choose? The value of each alternative is revealed by using the present value concept for cash, as well as, for an annuity. Additionally; the current interest rate, number of payment years, and, the future value of cash payments, are considerations used in the calculation.
It be treated in the public hospitals and clinics that is supplied by public insurance since it lacks the least facilities that can treat any patient, consequently low, middle, and high income families shift to private insurance since it can provide the least facilities. Adding to that, private insurance can provide a plan of payment according to the patient’s salary, but each plan has its benefits and coverage. Some other private insurance have special enrollment periods. For instance, according to HealthCare.gov (2015)“ special enrollment period such as having a baby, getting married or moving to a new
A. Our newly implemented life insurance protection and savings plan is specially catered to meet all your needs in life. B. All you need to do is to start planning out your future with our financial advisors. Motivated Sequence Approach: Attention: How many of you