Planning Topics...

Insurance Planning

What can I do to protect my family’s future?
We believe that an insurance program should be a part of every individual's financial plan. Before you purchase insurance, your Janis financial advisor can help you understand the reasons for buying insurance and how to determine the kind of insurance you need.

Insurance is one way of protecting yourself against the risk of unexpected financial losses. This is considered risk management, which involves identifying potential risks, such as loss of health, property, income or life; and developing appropriate strategies for protecting against these risks.

Insurance is based on the principle of shared risk. Groups of people pay specified premiums to a common pool. Funds from the group are then used to cover individual losses. The amount of premium each individual pays is based on the frequency of past losses by the group, plus the costs of administration and selling, divided by the number in the group.
Over time, your insurance needs are likely to change. Your Janis financial advisor can help you understand your individual needs and the options available in your situation.

Types of insurance products include:
Variable annuity/life products – Professionally managed investments issued by life insurance companies that combine the tax-deferral and family-security features of life insurance products with the investment options and the performance and risk potential found in other types of investments. These products give you a tax-deferred way of participating in the opportunities and risks of the stock and bond markets, while at the same time providing insurance benefits to your heirs. Guarantees found in variable products are subject to the claims – paying ability of the issuing insurance company. Withdrawals prior to age 59 ½ may be subject to penalties.
Term products – A level death benefit term life insurance product with the initial premium guaranteed for the entire length of the term. Insurance is provided for a single individual with a benefit payable at death. The policy is nonparticipating and dividends will not be paid.
Disability Income – This type of insurance helps replace a person's loss of income due to an accident or sickness disability. There are two ways this type of coverage can be provided: 1.Individual policies. 2.Group Disability through employer.
Senior Health Care Plans – This type of insurance provides health care coverage needed by clients as they near or enter retirement. Plans available include Medicare supplement policies, nursing home and/or long-term care plans.

Advanced Insurance Products
Key Employee Insurance - as its name implies, is a form of insurance used in business situations, to protect the business against the financial loss sustained by the death of an employee whose role in that business is considered important to its continued success.
Deferred Compensation - is an incentive plan, which allows an employer to provide certain key employees or executives with compensation at some pre-determined future date. The life insurance policy is often the funding mechanism used because of its unique characteristics.
Split Dollar - like key employee insurance, is not a special insurance product but rather a method of purchasing insurance. The premiums and benefits of the policy are usually split in some pre-determined way between a business and an individual or between two individuals.
Buy/Sell Funding - is the use of purchasing life insurance to fund a business buy/sell agreement, which indicates that one party must sell the insured's business interest while the other party must buy that same interest.
Bonus Plans - are a corporate employee fringe benefit where an employer can either pay tax-deductible premiums (taxable to employee) or bonus the premium dollars to the employee to pay the premiums.