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Life
Insurance
Life insurance helps to ensure that your family
and loved ones are protected against financial
difficulties in the event of a premature death.
In general, it is an
essential component in planning for the future.
 Combined
with investments, retirement and estate planning, life
insurance is a fundamental part of a sound financial
plan.
With the help of an
eGlobal
professional you can develop a complete
plan that will protect you and your family.
Disability
Insurance
Disability income coverage replaces income lost
by an employee when injury or illness prevents
the individual from working. Generally,
disability income policies are divided into 2
types:
-Those that provide benefits for up to two years
(short-term)
-Those that provide benefits for a longer
period, usually for at least five years, to age
65, or for a life-time (long-term).
When provided on a group basis, the benefits are
usually integrated with benefits from Social
Security and other public programs. The entire
range of benefits from these sources generally
is set at a level that does not exceed 60
percent of earnings.
Key
Person Insurance
When
you're just starting out, you've got a lot on
your plate, and it seems like you spend all your
time working on the urgent stuff--trying to get
your product or service ready, hiring
 people,
figuring out how to increase sales, paying the
bills and so on. It's hard to find the time to
consider something that isn't really urgent but
that can be incredibly important, such as
insurance--specifically, "key man" insurance.
Key man insurance is simply life insurance on
the key person in a business. In a small
business, this is usually the owner, the
founders or perhaps a key employee or two. These
are the people who are crucial to a
business--the ones whose absence would sink the
company. You need key man insurance on those
people!
Long-Term
Care Insurance
Long-term care involves a
variety of services for people with a prolonged physical
illness, disability or cognitive disorder. Long-term
care is not one service, but various different services
aimed at helping people with chronic conditions
compensate for limitations in their ability to function
independently. Long-term care differs from traditional
medical care in that it is designed to assist a person
to maintain his or her level of functioning; traditional
medical care or service is designed to rehabilitate or
correct certain medical problems that the individual
experiences.
Health
Insurance
Individual
health care insurance provides coverage for only one
individual, or family. In general, individual plans are
more expensive than group insurance. You can obtain
individual plans directly from a company who offers
them. The company with whom you apply will evaluate you
from a health standpoint, in terms of how much risk you
present to them. Usually, they'll provide a
questionnaire for you to fill out, asking various
questions about your current and past health history.
They will determine your risk accordingly, from which a
premium will be generated. |
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Buy-Sell
Agreement Funding Insurance
A buy-sell
agreement guarantees a buyer for a retiring or
deceased owners interest in a business, thereby
allowing the owner (or the owners heirs) to
recover his or her investment. The agreement
also fosters the continuation of the business by
not allowing the departing owners interest to
fall into the hands of outsiders - persons who
may not be qualified to run the business or who
may be incompatible with the remaining owners.
Business
Overhead Expense
While not strictly an executive coverage,
nevertheless this disability plan is an
important adjunct of the business and business
owner in protecting against disability. The
policy provides coverage during disability for
charges the insured might incur in the operation
of the business.
 Such expenses will not generally include salary,
fees, or other remuneration for the insured, his
family, or the partner, now will it cover the
cost of goods. Mortgage payments may be covered,
depending on the issuing company. Often the
Business Overhead Expense policy, in conjunction
with individual disability planning, is the
reason a business owner has a business to return
to.
Education
Planning (Education IRA, 529 Plans)
It's
an education savings plan operated by a state or
educational institution designed to help families set
aside funds for future college costs. As long as the
plan satisfies a few basic requirements, the federal tax
law provides special tax benefits to you, the plan
participant (Section 529 of the Internal Revenue Code).
529 plans are usually categorized as either prepaid or
savings, although some have elements of both.
Qualified
Retirement Plans (401k, SEP, Simple IRA)
Qualified plans are referred to as qualified
because they qualify for favorable tax treatment
under the Internal Revenue Code. Provided they
meet the requirements for maintaining such
plans, employers and self-employed individuals
get to deduct their contributions to the plan.
Also, employees are not immediately taxed on the
contributions made on their behalf, they can
often make additional contributions on a pre-tax
basis, and earnings on their retirement plan
funds get to accrue on a tax-deferred basis.
This is a pretty good deal for both the employer
and the employee.
Personal
Retirement Plans
(IRA, Roth IRA, Non-Qualified and Deferred
Compensation Plans)
The
IRA and the Roth IRA are excellent individual
retirement savings programs. These IRAs allow
you to sock away up to $3, 000 per year if you
are under age 50, and $3,500 per year if you are
older than 50. There is no dollar limit on the
amount that can go from an IRA to a Roth IRA.
The unique part of the Roth is that you can
receive your money tax-free when you retire.
Thus, the Roth IRA is one of the best ways to
build a retirement nest egg without worrying
about paying taxes on your money at a later
date. This feature should prompt everyone to at
least investigate contributing or converting to
a Roth IRA.
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