Summary of Policy Options and Basic Recommendations

I primarily sell AFLAC and Mutual of Omaha for supplemental health policies and a number of different companies for life insurance policies, depending on the best fit for the client. I am a strong proponent of AFLAC as a trusted and ethical company (over a dozen consecutive years on Ethisphere’s annual ethical company rankings), and am proud to represent them as an authorized associate. I’m also selective with the companies I represent for life insurance. If I’m putting the quote in front of you, it’s because I believe in what they do and that I trust them to protect you in life’s darkest hours.

Most folks don’t think about what would happen if medical disasters occurred. They think their major medical insurance will cover it. That insurance might cover the cost of surgery, chemo, or medication. But it doesn’t cover your lost income during the time you’re sick or hurt. Sick leave, savings, and loans from friends aren’t reliable sources of income during these types of events. An extended hospital stay will wipe out years of savings and sick leave, even if you already have health insurance. A 2007 Harvard study showed that 62% of personal bankruptcies resulted from health events, and 77% of those bankrupted had health insurance.

Get term life for yourself that covers a minimum of 1-3 years of your salary through age 55. Your family will need that salary replacement for the mortgage and other expenses when you’re gone. I always advocate getting a direct juvenile whole life policy for your child. She can hold it for life and won’t have to worry about paying high rates for final expense policies in her retirement years. Plus, benefits double and premiums stay the same after age 18, and it builds cash value. You should try to have at least 10-15K of whole life coverage, so your family can pay for your funeral and final expenses. If you’re retired, this should be your first priority. If you’re still working, term life should be your priority.

My standard advice for supplemental health clients is to look at your family history. That’s like a GPS to see what’s ahead for you. The time to choose a different route is far ahead of the actual event, not when you’re stuck in traffic. There are no off-ramps in real life to get insurance once you’re in that traffic jam.

If heart attacks, strokes, kidney failure, or liver failure are prevalent in your family tree, get a critical care policy when you’re younger and hold it for life. Is cancer the bigger family risk? Get a cancer policy at least 10 years before the initial diagnosis of the youngest family member that got cancer (as in, if your grandmother got cancer at age 42, get a cancer policy at age 32). Both cancer and critical care policies are very affordable (normally just $9-$30 per month for individuals) if you get them in your 20s or 30s. Research your family history, discover the biggest risks, get the appropriate policy, and hold it at those affordable rates all the way through your golden years. The first time you need it, it will pay for itself and then some. If you never need it, it’s still much less expensive than potential bankruptcy.

Here’s a basic summary of the different products I sell. Higher amounts of coverage are available with higher levels and policy riders. Specifics of policies might vary slightly from state to state.

Supplemental Health Insurance

AFLAC Accident Advantage [Option 1]:No medical underwriting. 24-hour accident coverage. $500 ($750 if straight to ICU) when admitted to hospital. $150/day of hospital confinement ($300 in ICU). $20,000 accidental death benefit. $60 annual wellness benefit (check sent to you if you get a flu shot, annual physical, or other preventative care). Also includes benefits for home modification, X-rays, surgeries, youth sports injuries, and casts/prosthetics.

Mutual of Omaha Guaranteed ADvantage: $50,000-$500,000 accidental death policy. Guaranteed renewal, no medical underwriting.

AFLAC Critical Care Option 1: Protects against specified health events (Heart attack, stroke, coronary artery bypass graft surgery, sudden cardiac arrest, 3rd degree burns, coma, paralysis, major organ transplant, end stage renal failure, persistent vegetative state). $7500 for first event, $3500 for subsequent events. $300 per day of hospital confinement. $125 per day in rehab facility. Also includes benefits for transport to hospital, transport for family members to visit you, and lodging ($75 per day for up to 15 days) for family members visiting you.

AFLAC Personal Cancer Indemnity Level 2: Too many benefits to fit in paragraph summary format. Here are some of the highlights. $2,000 for first occurrence/diagnosis. $300 per day of hospital confinement. $300 per day of chemo or radiation therapy. $300 per day for experimental treatments. $400 per month for immunotherapy. Up to $5000 for surgical operations (no lifetime limit on surgeries), $75-150 per day for extended care, $1000 on first day of hospice and $50 each day after. $75 annual wellness benefit for cancer screenings.

Mutual of Omaha Critical Advantage: No tiered benefits. $10,000-$100,000 lump sum payment for heart attacks and strokes or cancer diagnosis.

AFLAC Hospitalization Option 2: $1,000 when admitted to the hospital for over 23 hours. $100 (2x per year) for ER visits. $100 per day in rehabilitation facility (maximum 30 days per hospitalization no lifetime max). $100 (2x per year) for hospital short stays of under 23 hours. $150 per year for medical diagnostics and imaging. $100 for ambulance ride, $1000 for airlift. $25 per physician visit (3x per year for individual, 6x for family). Only available on group contracts.

AFLAC Short-Term Disability (STD): Protects you if you are unable to work for 3, 6, 9, 12, 18, or 24 months by paying you a portion of your income. You can begin earning benefits within 1-2 weeks (instead of waiting 4-5 months to apply for federal disability). Shortest period to receive benefit is 0 days following injury and 7 days following diagnosis of illness. Only offered as part of a group contract (minimum is 3 total people for a group contract).

AFLAC Supplemental Dental Level 1: Provides cash reimbursements on top of existing dental insurance. Ortho riders available. $1400 maximum annually. Waiting periods for major dental procedures. No waiting periods for preventative visits. Good value for families with children (especially with ortho rider for kids approaching teenage years, if you know braces/other procedures are on horizon in 10-12 months).

Life Insurance

AFLAC Juvenile Whole Life: First policy I wrote as a licensed agent (for my daughter). It’s $10,000-30,000 in whole life coverage that builds cash value as you pay premiums. When your child hits 18, the benefit amount doubles and premiums stay the same. Any time after 18, your child can decide to cash out the cash value, or take over whole life policy and just keep paying the premiums. It’s a great gift to give to a child to build security. And very affordable (6.50 a month for 1-year-old).

Mutual of Omaha Indexed Universal Life: Similar to whole life, but with some extra flexibility for moving premiums and benefits in response to changes in your family’s situation, and the chance to accumulate cash value as well. A good option for those seeking an alternative to traditional whole life coverage.

Term Life (multiple carriers): What would your family do if you and your income were gone? Term life is designed to provide a lump sum amount to help your family if you were no longer here. Designed as salary replacement to help pay mortgage, college tuition for children, and household expenses. Should be at least 1-3 years of your salary and cover to age 55, if possible. It expires in a set number of years (10-30). If you outlive the policy, you can renew at the higher rate or just let it expire. The insurance company “wins” that contract, but you have your highest earning years and your family has you, so I’d call it a “win/win”, because you protected them and your income.

Term Life Plus CBO (Americo): The problem many folks have with term life coverage is that it eventually expires. Americo offers a great cash back option (CBO) term policy that gives your family a death benefit if you pass within the term, and if you live to the end of it, you get every single dollar back that you spent on premiums in those 10-30 years. It’s like a combination savings lockbox and term life protection for your family.

Term Life Plus ROP (John Hancock): This John Hancock term policy will build some value and provide up to 75% of your premiums (ROP=”Return of Premiums”) back at the end of the policy. Also has no medical exam and fast approval process.

Term Life Plus Continuation (Americo): This is a good policy for those who want to protect their highest-earning years with term coverage and provide basic final expense protection for their senior years. Your beneficiaries get 100% of the death benefit during the term, and then 10% after the term expires. So a 20-year, $200,000 policy becomes a $20,000 whole life policy after the term is over. The $200,000 protects your salary/pays the mortgage, and then you still have enough for your final expenses at the same level premium.

Whole Life (18+)/Final Expense Policy (50+) (multiple carriers): If you’re older, and don’t have insurance, a final expense guaranteed whole life policy should be the first priority for you. You don’t want your loved ones trying to scramble to find 10-15 thousand dollars to pay for your funeral.

Long-Term Care

Mutual of Omaha Long-Term Care (LTC):

 1.4 million Americans are residents of nursing homes. That number rises every year as America ages. Medicare pays for 100 days. Medicaid has strict income and asset requirements.

The average nursing home stay is 2 years and 3 months. Average costs per year=over $70,000. 40% of people requiring long-term care are under 65-years-old. This year, roughly 60,000 Americans will be diagnosed with Parkinson’s. Average age? 60-years-old. 700,000 Americans will have strokes. Almost 30% will be under 65, and that number is likely to rise as a result of Covid-19 complications. Alzheimer’s costs for a lifetime run between $400-700,000 depending on the level of care you choose.

70% of those over 65 will need at least some form of long-term care. 20% will need 5+ years.

A common strategy is to “spend down” to Medicaid eligibility. That requires liquidating assets that you’ve spent a lifetime accumulating. You also don’t have complete freedom to choose your facility. Your golden years should not be spent in a home that you didn’t choose with a random roommate you don’t like…losing the legacy you spent a lifetime building.

If you want more freedom to select your level of care and protection for your assets, LTC is a vital option to consider. The average age for folks who purchase these policies=55-years-old. If you get it when you’re younger, it’s less expensive.

Annuities

Fixed and Equity-Indexed Annuities (Athene)

If you’re looking to build a safe haven for your retirement, an annuity is a good place to start. Take control of your future and build your retirement safely. If insurance is your shield of financial security, a good annuity is like your sword. While annuities aren’t for everyone, they are a good option to take a look at.

Conclusions

Want to build your own roadmap? Talk to me. Your quotes, policy summary spreadsheets and educative PowerPoint presentation are all free of charge. Call or text me today at 540-520-3069, email me at lurzinsurance@gmail.com or set up an appointment at my Grandin Village Office in Roanoke.

Best,

Dr. Rudolph Lurz

(540)520-3069

lurzinsurance@gmail.com

Dr. Rudolph Lurz has over a decade of experience as a teacher, football coach, and doctoral researcher. He holds a doctorate in Administration & Policy Studies from the University of Pittsburgh (Ed.D. 2017). He is also a published author (Realms of Glory, 2017). He has AFLAC products for his own family, including his young daughter. He’s licensed and insured, and sells AIG, AFLAC, John Hancock, Foresters, Americo, Mutual of Omaha, and Prosperity Life products. When he’s not assisting clients, he enjoys golf, travel, reading, and touring breweries. He lives in Roanoke, Virginia with his wife, daughter, and cat.

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