Cornerstone Insurance Group specializes in Retirement Readiness and Senior Insurances. We provide personalized recommendations relating to Medicare Planning, Long Term Care planning, Final Expenses, and Asset Protection.

Why is Life insurance important?

• To pay final expenses: cremation/burial, memorial service, final medical expenses, and family needs. *nobody else pays for this!
  
  
• To provide an income or nest egg for remaining family members: children- who will care for them and how will they afford a new expense? (Grandparents, siblings, or friends). Spouse- replacing a lost income or the duties that were provided. The goal of keeping life as normal as possible- grief is already hard enough- life insurance can help alleviate the financial stress.
  
  
• Clean up existing debts- wipe out as much debt as possible for loved ones.

How do I accomplish this?

There are several types of life insurance available- we are here to help you find the best fit both in coverage and expense.

• Term- largest available amount now for least cost. – Expires (like renting)
  
  
• Universal- builds equity but does not have guaranteed fixed costs- these could go up. (like buying a mobile home on a rented lot)
  
  
• Whole- more costly but creates a life long protection and builds cash value. May be used for retirement needs or future income. (like buying a home)

Why do people put this off?

1. Assume I can get it later.
   
   
2. I’ll buy it when I have a family.
   
   
3. I have group insurance through work.
   
   
4. My husband has coverage- I don’t need it.
   
   
5. My family can cover the expense.

Why Annuities?

“I am not as concerned with the return ON my money as I am concerned with the return OF my money” -Will Rogers

In the midst of our current financial crisis we have been fielding several calls from clients with concerns about their retirement savings. Current clients with fixed/fixed-indexed annuities want to be reassured that their money is safe, while other clients without fixed annuities want to know how to save what money is left.

We are proud to say that of the millions of dollars our clients have in fixed/fixed-indexed annuities- not one client has lost even a penny. Clients who are not familiar with annuities, may ask “how can this be?”

The answer is simple: fixed annuities are not a flashy product but they are safe, secure and contractually guaranteed.

• Annuities are free from any market risk- you cannot lose money in a FIXED annuity (this is not true of variable annuities and we do NOT offer those).
  
  
• No sales charges or commission deduction- we are paid by the company you chose to work with- these fees are not charged to you or deducted from your account.
  
  
• Tax-Deferred growth- you do not owe taxes on the interest earned until you actually withdraw that money.
  
  
• Guaranteed rate of return- your interest rate is contractually guaranteed for the term of the contract. On indexed products you can also take advantage of the market upswing while protecting your principal from the market downturns (pretty attractive strategy right now in our current economic environment).
  
  
• Annuities avoid probate- your account value goes directly to your beneficiary.
  
  
• Create a stream of income- the annuity is the only product that has the option (if you chose) to create an income stream that cannot be outlived. This is an important factor to people who are concerned about outliving their assets.
  
  
• Liquidity- there are many ways to access your money: monthly/annual interest payments, 10% penalty free withdrawals yearly, many policies have riders allowing early access to money for nursing home care or terminal illness.

In your retirement years – it’s no longer about growth and accumulation, it is about preservation.

What is an Annuity?

The annuity is basically the exact opposite of life insurance. While proceeds of life insurance are paid at the time of death of the insured, the proceeds of an annuity are paid while the annuitant is alive. Generally, the annuitant can never outlive the income from the annuity. However, you can also purchase an annuity with certain terms, which will provide income only for a specified period of time. Annuities are primarily intended to provide a source of retirement income. Payments can be made to the annuitant monthly, quarterly, semiannually or annually. While there are many types of annuity products available, they can be classified into three general categories: single premium immediate payment annuities, deferred annuities, and variable annuities. Both the deferred and variable types are available on a single premium or flexible premium basis, while also allowing account values payable to beneficiaries upon death.

Single Premium Immediate Annuities

With this type of annuity, you pay a single premium, and immediately receive payments, usually in monthly installments, as long as you live. Since payments cease upon your death you might consider the purchase of a life annuity with a guaranteed payment period, known as a life annuity with period certain. If your guaranteed payment period is ten years, and you die before collecting for ten years, your beneficiary would continue to receive the annuity payments until the end of the period.

A variation is the cash refund life annuity which provides that if you have not received installment benefits equal to the original premium payment before your death, the balance would be payable to your beneficiary in a lump sum payment. The installment life refund option would continue until the total to both you and the beneficiary equals the original premium payment.

Another common version is the joint and survivor life annuity, which provides for installment payments as long as one of the joint annuitants remains alive. For example, a married couple would receive an income as long as both spouses are alive. Thereafter, payments would continue as long as the surviving spouse is alive, usually for a smaller amount. This type of policy is well suited for a husband and wife in that it guarantees the surviving spouse an income for life.

A joint life annuity is one in which income payments continue until the death of the first of two or more annuitants. This type of annuity is not appropriate for a husband and wife since at the death of the first spouse income payments cease. The monthly benefit is greater than with other annuities since income payments cease at the first death.

Deferred Annuities (Single Premium and Flexible Premium)

Under a deferred annuity, paid premiums accumulate and earn interest, and installment payments are deferred until some future date. When annuity benefits commence, the accumulated value is used to purchase the annuity benefits you selected. Most deferred annuities provide the same annuity payment options as are available with single premium immediate annuities.

Deferred annuities are available on a single premium or flexible premium basis. Interest is credited to the accumulation value from the date that the premium payment is received until the earliest of the retirement date, the annuitant's death or the date that funds are withdrawn.

If the annuitant dies on or before the retirement date and no annuity payments have been made, the company will pay the accumulated value as of the date of death. The contract also gives the option to withdraw the cash value before commencement of annuity payments. Cash withdrawals are usually subject to a surrender charge in order to recover expense costs.

Most contracts provide a free annual withdrawal of 10% of the cash value without a surrender charge. In addition, some contracts, especially single premium deferred annuities, will waive all surrender charges if the credited interest rate falls below a particular rate commonly known as the bail-out rate.

Variable Annuities

Variable annuity premiums are invested in stocks, bonds, money market instruments, mutual funds, and real estate. The cash value is not guaranteed and it will increase or decrease in direct proportion with investment results. You can choose your own investment strategy and you bear the entire investment risk. Some contracts provide an additional guaranteed cash value investment option similar to deferred annuities.

Variable contracts are available on either a single premium or flexible premium basis. You may elect an annuity payout option with guaranteed payments similar to options offered with deferred annuities. You may select a payout option where the amount of your income will increase or decrease based on investment experience.

Medicare has become one of the most frequently asked about lines of coverage in our business. With all the options available and Medicare Advantage plans becoming more popular, we find that our clients appreciate the local and personalized service we are able to provide.

Medicare Supplements

There are 12 standardized plans lettered A-L and are the same from company to company. These plans are created to "supplement" or "fill the gap" that Medicare leaves. There are no co-payments or network restrictions with these plans, they simply cover any expenses that Medicare approves. The benefits that are paid out under these plans are the same no matter which company you choose. As a consumer you will want to look for a premium and service level that coincide with your expectations.

We currently represent Medicare Supplements from Regence BlueShield and Mutual of Omaha to PacifiCare Liife and Health, providing both reasonable and competitive premiums. We, at Cornerstone, strive to provide the best personal and local service possible.

Medicare Advantage

Medicare Advantage plans have become increasingly popular since the Medicare Modernization Act of 2005. These plans differ from company to company, plan to plan, and year to year. Often times referred to as "Medicare with Perks", these plans typically offer lower monthly premiums coupled with co-pays and co-insurances, and may offer services not covered by Traditional Medicare, such as annual physicals, vision, dental benefits, and prescription benefits. These plans may have network restrictions or geographical restrictions. We are finding that many area doctors are choosing to work with some plans and choosing not to work with others. Due to the complexity of these plans and various restrictions, we urge you to enlist our guidance to make sure you are matched with the best plan for your needs. We currently represent: Essence, RegenceMA, Secure Horizons, AARP Medicare Complete, Evercare, and Advantra Freedom.

Medicare Part D

Introduced in 2005, this is the prescription plan that Medicare offers. There are over 50 plans in our area, each with different premiums, co-payments, and deductible amounts. Let us do the legwork for you: provide us a list of your current medications and we will find the best plan for you. We do recommend reviewing your plan annually as the formularies (how they list the drug) may change, causing a higher or lower co-payment on your part.

Long Term Care Planning does not always include Long Term Care Insurance (LTCI) but when it does, utilize an agent that has multiple companies to choose from. Cornerstone offers plans from the top LTCI companies. There are many variables to consider when creating a Long Term Care plan, below we have listed the "basic" benefits of a plan. You can contact us at anytime for a free consultation; we will discuss with you what your goals are and match a plan to those goals.

1) Care Settings: When the time comes, where would you like your care to be provided? At home, Assisted Living, an Adult Family Home, or a Nursing Home? Some plans will cover care in a facility such as a Nursing Home, Assisted Living, or Alzheimer's Units. Some plans will cover care in a home setting and other plans will provide care in either setting- these plans are considered comprehensive plans.

2) Benefit Amount: This is the amount of money that is provided for care; most plans will offer amounts ranging from $100 a day to $400 a day. The amount you chose will depend on how much you want the insurance company to pay in the event of your care and how much you are willing to pay for that care out of your own resources. The care in the greater Puget Sound can reach as much as $10,000 a month with an average of roughly $6500 a month. We will help you determine how much is appropriate for your situation.

3) Benefit Period: This is how long your total benefits will last: 2 years, 3 years, 5 years or longer.

4) Elimination Period: This is like a deductible. How long will you have to pay for care before the insurance kicks in? Most plans have 30, 60, 90 and 180 day options frequently offering riders to waive the Elimination period for Home Health Care.

5) Inflation Benefit: This option will determine if your benefits will grow over time. You can chose from simple inflation (usually 5%) or compounding inflation (options starting at 3% going up to 5%).