Six Reasons to Replace Old Insurance With New

Six Reasons to Replace Old Insurance With New

Do a Personal Insurance Audit Now. Just like autos, new insurance policies are greatly improved over 10-year-old polices. Many now deliver more protection for less money. Individuals often continue to pay for insurance protection that is no longer needed and are under-insured in other areas.

Wellesley, MA (PRWEB) October 19, 2005

Anybody who owns a life insurance policy they bought 10, 20 or even 30 years ago, may be overpaying for insurance benefits they don’t need.

"Unfortunately life insurance companies and their agents seldom suggest changing outdated policies. Keeping old policies on the books can be more convenient and profitable," says Paul J. Mauro CLU, CHFC and CEO of Legacy Financial Advisors in Milford, MA.

" Since we now live longer, the mortality tables life insurance companies use to establish premiums have grown more favorable to consumers. Insurers are also developing products in response to demographic shifts -- especially products for the growing number of 50 to 65 year old baby boomers," explains Mauro.

Mauro, an independent financial advisor with three decades of experience, helps clients examine their overall financial situation before selecting insurance coverage from a broad range of qualified companies and products. Paul J. Mauro’s urges consumers to ask six questions before changing or buying life insurance.

1. Are current policies more than 10 years old? Since insurers revise mortality tables periodically to reflect how long people are really living, the existing policy may be overpriced. "A 50-year old today can buy a 20-year term life insurance policy for less than what a 40-year old had to pay for identical coverage only a few years ago," says Mauro.

2. Am I nearing retirement? Those about to retire on a pension plan are typically given a choice between receiving full benefits that stop when they die, or lower monthly payments in exchange for "survivor benefits" that continue until their spouse dies. "Instead of reducing pension benefits, it may be cheaper to replace existing life insurance with a new policy sufficient to cover your spouses living expenses should you die first." Those who are depending on 401(k) or IRA plan assets to cover retirement may want to drop life insurance policies altogether and replace them with annuities that provide a monthly benefit to both husband and wife for as long as they live.

3. Did I borrow against the cash value of my life insurance policy? Anyone who owes money on a life insurance policy loan can be in for a shock if they do not cancel or terminate the policy correctly. "Almost daily, clients tell us that when they cancelled the policy, their insurance company reported the proceeds from an unpaid loan to the IRS as income. This resulted in having to pay taxes on money spent long ago." This problem, known as phantom income, can be eliminated, but not after the fact. Life insurance products that extinguish the outstanding loan are available. Despite the increasing number of insurance policy holders who owe money on these loans and are moving toward a tax explosion, the industry is doing little to inform them about ways avoid income taxes on this phantom income."

4. Is a cash value policy sorely outdated? Life insurance products -- especially so-called variable life and universal life -- have been markedly improved. More investment options have been added. Internal costs for management and other expenses -- paid by the consumer -- are often lower in new policies. "In particular, drop policies from financially troubled insurance companies that have increased internal costs to cover a financial shortfall," urges Mauro.

5. What about the need for long-term care insurance? There are several ways to protect against the financially ruinous burden of paying for long-term care. Among them are new policies that combine both death and long term care benefits. A combined policy can provide, say, $500,000 at death and $250,000 for long-term care more economically than having two separate policies. "If you buy a policy that pays both death and long term care benefits you can be sure someone will collect from that policy someday," quips Mauro.

6. Have my needs changed dramatically? Says Mauro; "Those who have closed a business, divorced, or paid off a mortgage, may still be paying for life insurance they no longer need. As a bonus, consumers may get a significant payment from the insurer when they cancel. Surprisingly, some polices are worth more than their cash value when cancelled through a life settlement company.

Where to get advice. Says Mauro, "Insurance agents and brokers can help, but beware of those who steer customers to a particular company or are less than forthcoming about changing an existing policy. Independent financial advisors focus on overall financial health and are able to select products that best serve their clients without allegiance to specific companies."

Legacy Financial Advisors Inc. (www. lfsadvisors. com) has three decades of experience helping families plan for aging. Paul J. Mauro, CEO, was featured in the PBS special "And Thou Shalt Honor." Legacy has extensively used the new products and plans that are referred to as "Principal Protected Investing" recommended in the Ernst and Young LLP in a white paper on the changing face of the industry. Legacy Financial Advisors Inc. has six offices in Massachusetts; Milford, Duxbury, Yarmouthport, Natick, Peabody, and Braintree and offices along the East Coast. Tel: 800-427-9781.

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General Wesley K. Clark, US Army, Retired, will speak on Civil Military Affairs and U. S. Diplomacy at the State Department on May 30

General Wesley K. Clark, US Army, Retired, will speak on Civil Military Affairs and U. S. Diplomacy at the State Department on May 30.

General Wesley K. Clark, US Army, Retired, will speak on Civil Military Affairs and U. S. Diplomacy and sign copies of his new book, WAGING MODERN WAR on May 30, 12:00 noon to 1:00 p. m. at the State Department in Washington, DC.

(PRWEB) May 19, 2001

The SecretaryÂ’s Open Forum, U. S. Department of State

The Bureau of Political-Military Affairs, U. S.

Department of State

The American Foreign Service Association

The Elliott School of International Affairs - The

George Washington University

Center for Peace and Security Studies -

Georgetown University

University of Maryland University College

And

The United Nations Association - National Capitol Area Chapter

Proudly Present

A Conversation on Civil Military Affairs and U. S. Diplomacy *

Featuring

General Wesley K. Clark, US Army, Retired

Keynote Speaker

And

Ms. Dana Priest, Military Affairs Correspondent, The Washington Post; Guest Scholar, U. S. Institute of Peace; and Recipient of The Gerald R. Ford Prize for Distinguished Reporting on National Defense

Series Moderator

Date: May 30, 2001

Time: 12:00 to 1:00 p. m.

Location: The Dean Acheson Auditorium

U. S. Department of State, Harry S Truman Building

Immediately following this event, General Clark will sign copies of his new book, WAGING MODERN WAR.

Open Forum visitors should arrive at the 23rd Street entrance of the Harry S Truman Building

U. S. Department State (between C and D Streets NW). The U. S. Department of State's Bureau of Diplomatic Security requires the following information:

Name:

Date of Birth:

Social Security # or Passport #:

Citizenship:

Telephone:

Fax:

E-mail:

Organization/Agency:

To register, please fax this information to:

(202) 647-4040; Attention: Mr. Alan Lang

Or send it via email to: A. Lang@state. gov

About the Keynote Speaker:

General Wesley Clark

US Army, Retired

General Wesley K. Clark is currently associated with Stephens Group, Inc., working high technology venture capital. He is also a noted speaker presenting key insights on strategic leadership, foreign and military policy and high technology to corporate leaders and other audiences. General Clark serves pro bono as a distinguished senior advisor for the Center for Strategic & International Studies (CSIS), a Director of the Atlantic Council and a member of the board of the International Crisis Group. On August 9, 2000, he was awarded the Presidential Medal of Freedom, the NationÂ’s highest civilian honor.

General Clark was the Supreme Allied Commander Europe from 10 July 1997 through 3 May 2000. He was also the Commander in Chief of the United States European Command.

As Supreme Allied Commander, Europe, General Clark was in overall command of NATOÂ’s military forces in Europe. Responsible for safeguarding an area extending from the northern tip of Norway to the eastern border of Turkey, he assured the peace, security and territorial integrity of the NATO member nations. In his position as SACEUR, General Clark was also the overall commander of the approximately 75,000 troops from 37 NATO and other nations participating in ongoing operations in Bosnia-Herzegovina and Kosovo. In 1999, General Clark commanded Operation Allied Force, the AllianceÂ’s successful military action in response to the Kosovo crisis. This was NATOÂ’s first major, combat action, and largest air operation in Europe since the Second World War.

Simultaneously, as Commander in Chief of U. S. European Command, General Clark commanded United States military activities in 89 countries and territories covering more than 13 million square miles of Europe, Africa and the Middle East and involving approximately 109,000 American Soldiers, Sailors, Airmen and Marines.

General ClarkÂ’s previous assignment was as Commander in Chief of the United States Southern Command, Panama, from June 1996 to July 1997, where he commanded all U. S. forces and was responsible for the direction of most U. S. military activities and interest in Latin America and the Caribbean. His prior assignment was Director, Strategic Plans and Policy, J5, the Joint Staff (April 1994-June 1996) where he was responsible for worldwide politico-military affairs and U. S. military strategic planning. He also led the military negotiations for the Bosnian Peace Accords at Dayton.

General Clark was an Armor Officer who had commanded army forces at every level, from a mechanized infantry company in combat in Vietnam through command of the 1st Calvary Division, Fort Hood, Texas (1992-1994).

General Clark spent five years training leaders and soldiers at the National Training Center (NTC), Fort Irwin, California, and with the Battle Command Training Program (BCTP). As the Commander of National Training Center (October 1989-October 1991), General Clark trained many of the forces that won the victory in Desert Storm.

He also served as Deputy Chief of Staff for Concepts and Doctrine and Developments, U. S. Army Training and Doctrine Command, Fort Monroe, Virginia (October 1991-August 1992), where he created new systems to evaluate and prioritize high technology and helped pioneer the digital revolution in the Army.

General Clark is a 1966 graduate of the United States Military Academy of West Point, New York, where he graduated first in his class. He holds a MasterÂ’s Degree in Philosophy, Politics and Economics from Oxford University where he studied as a Rhodes Scholar (August 1966-August 1968). He is a graduate of the National War College, Command and General Staff College, Armor Officer Advanced and Basic Courses, and Ranger and Airborne schools. General Clark was a White House Fellow in 1975-1976 and served as a Special Assistant to the Director of Management and Budget. He has also served as an Assistant Professor of Social Science at the United States Military Academy.

Among his military decorations are the Defense Distinguished Service Medal (five awards), Distinguished Service Medal (two awards), Silver Star, Legion of Merit (four awards), Bronze Star Medal (two awards), Purple Heart, Meritorious Service Medal (two awards) and the Army Commendation Medal (two awards), NATO Medal for Service with NATO on Operations in Relation to Kosovo, NATO Medal for Service with NATO on Operations in Relation to the Former Republic of Yugoslavia.

His Foreign awards include the Honorary Knight Commander of the Most Excellent Order of the British Empire (United Kingdom); Commander of the Legion of Honor (France); Grand Cross of the Order of Merit of the Federal Republic of Germany; Knight Grand Cross in the Order of Orange-Nassau, with Swords (Netherlands); Grand Officer of the Order of Merit of the Republic of Italy; Grand Cross of the Medal of Military Merit (Portugal); The CommanderÂ’s Cross with Star of the Order of Merit of Republic of Poland; Grand Officer of the Order of Merit of the Grand Duchy of Luxembourg; Grand Medal of Military Merit (White Band) (Spain); The Grand Cordon of the Order of Leopold (Belgium); Cross of Merit of the Minister of Defense First Class (Czech Republic); Order of Merit of the Hungarian Republic; CommanderÂ’s Cross, The Silver Order of Freedom of the Republic of Slovenia; Madarski Konnik Medal (Bulgaria); Commemorative Medal of the Minister of Defence of the Slovak Republic First Class (Slovakia); First Class Order of Lithuanian Grand Duke Gediminas (Lithuania); Order of the Cross of the Eagle (Estonia); The Skandeberg Medal (Albania); Order of Merit of Morocco; Order of Merit of Argentina; The Grade of Prince Butmir w/Ribbon and Star (Croatia) and the Military Service Cross of Canada.

General Clark and his wife Gert live in Little Rock. General Clark grew up in Little Rock, Arkansas.

About the Series Moderator:

Dana Priest

Dana Priest is the Washington Post Pentagon reporter and Guest Scholar at the U. S. Institute of Peace. A Post reporter for 15 years, Priest began as an assistant foreign editor, worked on the Metropolitan staff and then covered regulatory issues and the White House health care initiative. For the last six years she has written about the U. S. military. Priest has covered the military's increasing role in implementing U. S. foreign policy overseas with a series on a worldwide Special Forces training program, an unprecedented U. S. military program to reconstruct the defense departments of Central European countries and the Army's peacekeeping deployments to Bosnia and Kosovo. She produced a three-part series NATO's air campaign against Kosovo. On June 4, 2001, for her three-part series on the growing foreign policy clout of the regional commanders-in-chief (CINCs) published last fall, she will received the coveted Gerald R. Ford Prize for Distinguished Reporting on National Defense.