ISSUE 63 The Ziff Agency Monthly Octob e r 2 0 1 8

From the Desk of Adam Ziff The Ziff Agency, LLC

Does It Make Sense To Purchase More Than One Life Insurance Policy?

You need life insurance if your You can own multiple policies from different companies. But when you apply, insurers will ask Current News: death would hurt anyone financially. For many people, one about current coverage to make sure the amount Fixed Annuities policy is enough, but does it ever you want is reasonable, says Brian Ashe, Are On A Tear P.2 make sense to have more than one executive vice president of Life Happens, an educational nonprofit supported by insurers. The Underwriter's life insurance policy? Corner P.2 You can buy a lot without raising eyebrows. For some, two or more policies can Insurers typically will ask for justification if the total Famous Estate be better than one. Your needs coverage would exceed 20 to 30 times your Planning Blunders: should drive the number and type of income, he says. DJ AM P.3 policies you buy. Multiple Term Life Policies Infographic: You can own multiple policies from The most common reason to buy coverage is to Commons Types of different companies. But when you Permanent Life apply, insurers will ask about current replace missing income in case a breadwinner Insurance P.3 coverage to make sure the amount dies prematurely. you want is reasonable, says Brian Ashe, executive vice president of Life Happens, an educational nonprofit supported by insurers.

Ph: 212.796.5433 You can buy a lot without raising Ph: 949.393.5433 eyebrows. Insurers typically will ask Ph: 941.922.9433 for justification if the total coverage Ph: 305.363.5433 would exceed 20 to 30 times your [email protected] income, he says. www.theziffagency.com 02

Current News: 3 Reasons Why Life Insurance is Essential to Any Benefits Package Fixed Annuities 1. Attract and retain talent in the growing workforce Are On A Tear For example, rather than a 30-year $1 million policy, you could buy three policies: Today’s job market is rapidly growing, and employers must offer top-notch benefits to attract and retain quality talent. This is Fixed annuities have been  10-year, $500,000 on a tear this year, with sales where a Voluntary Term Life Program can be beneficial to both  seeing double-digit growth 20-year, $300,000 employers and employees. For employers, it provides a way to across several product  30-year, $200,000 complement an employee benefits program without adding categories amid rising significant cost; for a workforce that’s becoming increasingly interest rates and easing This “laddering” strategy can save money, says diverse, it’s a convenient and often less costly way to achieve regulatory pressure. Dennis Rupp, director of insurance wholesaling at financial freedom. Overall sales of individual fixed annuities were $33.7 TIAA, a financial services provider. And it can work 2. Enhance employee financial wellness billion in the second quarter if coverage needs diminish and you can accurately of 2018, the third-highest predict them. “But spoiler alert: Life is really messy,” According to Guardian’s Workplace Benefit Study, more workers quarterly total of all time, Rupp says. according to the LIMRA indicate they are struggling to meet their goals related to saving Secure Retirement Institute. for retirement and college, managing debt, and protecting their The insurance group is If you decide to buy just one policy and find later family in the event of premature death or being out of work for an forecasting that total annual you don’t need as much life insurance, most extended period of time due to a serious illness or injury. sales will hit record levels by insurers will let you decrease the coverage and pay Employers are finding that they can achieve better results by year-end. less, Ashe says. taking a more holistic approach to managing workforce well- "The only other time they being, one that includes a strong financial foundation. One key were higher was right in the component is supporting financial wellness with a variety of peak of the financial crisis as Different Goals, Different Policies we saw a flight to safety and efforts, including broad insurance benefit options for more people getting out of equity- You may have other reasons to buy coverage, adequate protection such as voluntary life insurance, college based products and looking besides replacing income. Some examples: tuition savings, financial education and benefits enrollment for principal protection," Todd support.  Small-business owner needs: You may need a Giesing, LIMRA’s director of term policy to take care of the family and another to annuity research, said of 3. Increase employee satisfaction and productivity quarterly sales. cover business loans or fund a buy-sell agreement.  Fixed-rate deferred and Long-term care: A hybrid life insurance policy When employers help set employees on a path toward better indexed annuities, a subset can be used to pay for long-term care if you need it. financial wellness, it pays off. Research shows that financial of fixed products, have been If you don’t max out the benefits for care, it pays out the primary drivers of growth. stress impacts working Americans emotional and physical well- Fixed-rate sales were up at death. You might own traditional life insurance to being significantly. The results of this can be a large negative for 23% year-on-year in Q2, to take care of financial dependents and a hybrid an employer since financial-related stress can distract $11.4 billion. Meanwhile, the policy to cover long-term care. employees at work, driving down productivity and overall job $17.6 billion in indexed  Estate planning: If you want to leave life satisfaction. annuity sales was the insurance money to someone no matter what when (Source: The Star Tribune) highest-ever quarterly total for the product line; sales you die, you’ll need a permanent policy, such as were up 17% year-on-year. whole life. LIMRA is predicting (Source: USA Today) annual sales of fixed-rate products will increase 15-20% year-on-year in 2018, and as much as 25% in 2019.

(Source: Investment News) The Underwriter's Corner: Underwriting Q & A Why Underwriters View Diabetics as Risky

When you apply for life insurance coverage, the insurance agents are going to look at a variety of different factors to determine how much of a risk you are to insure. The more risk that you are, the more they are going to charge you for insurance coverage. If you’re too great of a risk, then the company could decline your application. Life insurance underwriters are employed to assess the risk that you pose to a company should they choose to insure you. Since diabetics have a much higher chance of developing long-term health complications, like heart disease, neuropathy, and kidney failure, insurance underwriters automatically label your application as risky. A diabetic who poses an average, or standard, amount of risk, can be charged a standard premium. If you have a good A1C and no complications then you will fall into this category with certain insurers. (Source: Life Insurance for Diabetics) 03

INSURANCE 101 Famous Estate Planning Failures

NAME: DJ AM

DIED: August 28, 2009; AGE: 36 CAUSE:

ESTATE BLUNDER:

Not leaving a will or estate plan

Famous musician DJ AM (real name Adam Goldstein) did not have a will at the time of his death. Goldstein had an annual gross income of $3.5 million and other property valued at $400,000. However, he carried a debt of $2.9 million, leaving his estate valued at approximately $1 million.

Goldstein was found dead in his apartment. were found nearby. The New York medical examiner subsequently determined that Goldstein's death was an accident caused by "acute intoxication" from a

(Source: Global Atlantic) combination of , , , , , , and levamisole.

As his sole heir, his mother had to file letters of administration that revealed the deejay had left no will and no instructions on how to disburse his fortune.

(Source: E! Online) 04

HERE’S A THOUGHT...

“October is about Trees revealing colors they've hidden all year.

People have an October too.” www.theziffagency.com - Jm Storm

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