It's all your business: how much life insurance? - Professional Resources

American Music Teacher, June-July, 2003 by Tammy Wallace

Since recently being (re)married and being "40 something in age, my husband and I decided it was time to discuss our overall financial plan. Having grown children, teenage children and aging parents, we were led down many different paths for our obtainable financial plan; however, we kept returning to the same question: How much life insurance do we really need? "It was like going to the pharmacy before you've figured out what your disease is," according to Bruce Bare, Jr., the past president of the Society of Financial Service Professionals. You also may have had a life-changing event, but as a busy music professional, you may not have time to review a financial plan, let alone different types of life insurance coverage. Even if you have not had a life-changing event, most people do not recognize how much life insurance fits into their overall financial plan or how their life insurance needs change throughout the various stages of life.

Most people only think of life insurance after experiencing the loss of a loved one. Of course, it is less emotional to discuss life insurance at another time, and that is why it's so important to discuss this information with someone who truly is experienced in this area. Education is a major key in this process, and comparing coverage, as well as price, is very important. No one likes to discuss this issue at anytime in their life, but to bring peace of mind to your family, now may be the best time for a discussion.

Another component of the overall financial plan is the Long Term Care placement for aging parents or even yourself. On average, women live longer than men, so they're more likely to require this service, and many women make up more than two-thirds of those who provide this type of care. "Care-giving has the potential to become a glass ceiling for women," says Phyllis Shelton, who wrote Long Term Care Planning Guide (Shelton Marketing Services). The Long Term Care Insurance policy is one way families can protect themselves and aging family members from financial and emotional stress.

Most experts recommend you review a Long Term Care Policy between the ages of 55 and 60. However, you should consider your family history when making this decision. When shopping for a Long Term Care plan, there are lots of variables to consider; including the benefit period, daily benefit, elimination period, inflation riders and benefit triggers. Make certain you are covered for home care, and check the policy daily maximum for this care. New benefits and coverage allowances may be available in the forty-plus years, so make sure you have the flexibility to purchase them. We never like to think about what can happen in old age, but it's easier to plan when you are young and healthy.

Just like selecting the right instrument or perfect music, the financial plan will have to be tailored to suit the individual. As the exclusive MTNA-endorsed agency, the Clarkson Insurance Agency offers these insurance products specifically designed for music professionals through the nation's top-ranked carriers including Employers Modern Life, GE Capital, Banner Life, First Colony Life, Jefferson-Pilot Life and many others. With thirty-plus years in the insurance arena, the Clarkson Agency's experienced team is ready to work for you to provide MTNA members with the best coverage available. As always, this is a free service for MTNA members, and we welcome the opportunity to provide this valuable service to you. To request either a life or long-term care insurance quote, contact an agent at (800) 338-7148 or by e-mail at mma@rhcgroup.com.

Another important form of protection you may not be aware of is the professional and/or general liability coverage offered to MTNA members. Do not put yourself at risk by assuming you are covered by your other insurance plans. You can locate information on the liability protection by calling our office or visiting our website at mma@rhcgroup.com and clicking on "MTNA."

What Long Term Care Can Cost

This policy pays $100 daily benefit and $3,100 month of coverage.

       Annual   Couple's   Good Health     Both
Age   Premium   Discount     Discount    Discounts

45     $750     $600       $675          $525
55     $1,040   $832       $936          $728
65     $4,970   $1,576     $1,773        $1,379

This policy pays $130 daily benefit and $4,030 month of coverage.

45     $975     $780       $877          $682
55     $1,352   $1,081     $1,216        $946
65     $2,561   $2,048     $2,304        $1,792

Individuals receive six years of benefit payments, inflation protection
of 5% increases per year and 100-day elimination period.

Premiums rounded for illustration purposes.

Data: GE Capital Assurance

Tammy Wallace

Robert H. Clarkson Financial Services, Inc.

Louisville, Kentucky