What are Qualified and Non-Qualified Retirement Plans?
In simplest terms, a qualified retirement plan is one that meets ERISA guidelines, while a non-qualified plan falls outside of ERISA guidelines. Qualified plans include 401(k), profit sharing plans, 403(b), and Keogh (HR-10) plans. Tax treatment is the main difference between qualified and non-qualified retirement plans. Contributions to a non-qualified plan are not deductible to […]
What are Annuities?
An annuity is a type of policy issued by an insurance company designed to accept and grow funds, and upon annuitization, create a stream of income or payments. The money you pay in can be either a lump sum or a number of payments. These contributions generally earn a rate of return, generally tax-deferred.
What is Disability Insurance and How does it Work?
Disability insurance replaces a portion of employee income when they can’t work because of an illness or disability. For the most part, disability insurance will not replace all of someone’s income. Instead, disability insurance provides wage replacement benefits that cover, on average, up to 60% of employee earnings.
What is a Prescription Drug Plan?
A prescription drug plan (PDP) is a stand-alone plan, covering only prescription drugs. Enrollees who choose the option of prescription drug coverage through a Medicare Advantage plan would also have coverage for other medical expenses as part of that plan.
What is Medicare Supplemental Insurance?
A Medicare Supplement Insurance (Medigap) policy helps pay some of the health care costs that Original Medicare doesn’t cover, like: Copayments Coinsurance Deductibles Medigap policies are sold by private companies. Some Medigap policies also cover services that Original Medicare doesn’t cover, like medical care when you travel outside the U.S. If you have Original Medicare […]
What is Long-Term Care Insurance?
A Long-Term Care Insurance policy covers a person’s basic daily needs over an extended time. While health care insurance or Medicare helps pay for immediate medical expenses, say, a surgeon’s bill, long-term-care insurance helps people cope with the cost of chronic illnesses, such as Alzheimer’s disease, or various disabilities.
What is Key Man or Key Person Insurance?
Key person insurance is simply life insurance on the key person(s) in your business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the team members who are crucial to a business–the ones whose absence would sink the company. You definitely need to consider […]
What is Final Expense Insurance?
Final expense insurance is designed to cover the bills that your loved ones will face after your death. These costs will include medical bills and funeral expenses. Final expense insurance is also known as burial insurance. Final expense life insurance is a type of whole life insurance that offers small coverage amounts to people who […]
Is it Important to Have Life Insurance?
Yes! Everyone knows why life insurance is important, but many of us choose to ignore the reality of what would happen if we were to die suddenly. The results could be devastating for your surviving family members, leaving them with a large bill for your final expenses, or even worse, loss of the family home […]