INSURANCE

The year 2001 will no doubt be a year that most of us will never forget. After the tragic events of Sept. 11^th, our lives will probably never be quite the same. For families and individuals who have lost loved ones, we share in your grief. The year 2002 will be a year of rebuilding – lives, property, and finances.

The terrorist attacks on Sept. 11^th may go down as the most costly insured event in history. Some estimates place losses in excess of $30 billion. But even with such a huge price tag, the financial stability of the insurance industry is not in question. All the claims will be paid, without government help. Promises made, promises kept.

As a Nation, we have much to be thankful for. As for me, I am both thankful and proud to represent an industry that helps people. Nothing can replace the loved ones that were lost, but insurance will help put their financial pieces back together.

As we start this new year, filled with promise and opportunities, take the necessary time to analyze your insurance needs. Insurance will provide the guarantees that you need to protect you and your assets. Here are a few types of insurance that should be considered:

Life insurance is the most cost efficient way to protect your family, or someone else with insurable interest, in the event of a premature death. There are many types of life insurance policies from which you can choose. Among those available are: Whole life, universal life, indexed life, survivorship life, one, five, ten, twenty, and even 30-year level term. Decreasing term is normally used to cover mortgage loans. Some mortgage programs also offer a disability rider to pay for a mortgage payment in the event of a disability. Some types of life insurance offer "CD" type interest rates and may have tax advantages. A careful analysis of your individual needs will determine the policy that is best for you.
Disability insurance is designed to replace income that is lost as a result of a disability. Most policies will provide up to 60% of your actual lost income. This maximum amount available will be coordinated with any current coverages in effect. Self-employed individuals may also purchase an "Overhead Business Expense" policy to cover ongoing business costs while they are disabled.
Long or short-term major medical insurance will protect your assets from a catastrophic loss. Long-term care coverage will also provide you with independence and a choice of where you will receive care that may be needed.
Tax-deferred annuities provide both tax advantages and "CD" type current interest rates. Minimum guarantees are generally higher than savings accounts. Over a period of time, tax-deferral can be a powerful tool in keeping your savings above the inflation rate. Most annuities are very flexible. The funding of annuities may be on a single payment basis, or through a series of deposits. Depending on the age of the insured, and the tax benefits needed, the contract may be funded as either a "qualified" or "non-qualified" plan. Several pay out options are available; including guaranteed lifetime income. Some pay- outs may also be paid on a tax-favored basis.

Your AAA Insurance Agency represents many excellent companies. If you would like more information, or would like to review your current insurance program, just call, or stop by one of our conveniently located offices. We’re here to serve you!

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Published in the January/February 2002 issue of the AAA Traveler.