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New life insurance protections available

July 23, 2015 – By Dave Serena, Insurance Agent Wisconsin Medical Society Insurance & Financial Services, Inc.

Physicians know more than most how injuries and illnesses can jeopardize a family’s savings. When the unexpected happens—like being diagnosed with a serious disease or a sudden drop in the stock market—it can wipe out individuals’ financial portfolios, in spite of their attempts to live healthy and protected lives. However, there are new life insurance products and applications to help manage these types of risks.

The new “Term Life” products include riders that allow for “living” benefits, not just the traditional “death” benefits. Living benefit riders allow for benefit payments for chronic, critical or terminal illnesses, so one has access to cash to pay for care that is not covered by one’s health insurance, such as in-home care or facility-based needs. Additionally, there are new riders that can be part of “Permanent Life” insurance contracts that allow for distributions when one requires assistance with two or more activities of daily living.

That can be important because, according to the Centers for Disease Control and Prevention, almost half of all Americans suffer from at least one chronic illness, and many have daily activity limitations.

One’s health isn’t the only factor that can put their financial security at risk. The stock market’s ups and downs also can have a major impact on one’s future retirement accounts. Historically, individuals who can allow their accounts to rebound and recover during a “bear” market do just fine. But for those who are relying on withdrawals and distributions, time may not be on their side.

Tax-sheltered cash within a cash value life insurance contract may allow an individual to take distributions from the life insurance contract, while giving a qualified retirement portfolio time to recover during a market downturn. Cash value contracts have been shown to be safe and predictable during upheavals that have occurred in the stock market.

If you are just beginning to think about your family’s financial exposures, or, if you haven’t thought about them for some time, it is probably the right time for a personal review. Doing so can help protect your investment portfolio and avoid the stress and uncertainty that comes from depleting the right resources at the wrong time.

For more information or to schedule a meeting with an insurance agent, contact Dave Serena at dave.serena@wismed.org, or call 800.474.7500.

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