For the Long Haul

Welcome to the first official issue of our Zinsurance Blog! I am excited to bring this value-added resource to your inboxes and to feed your curiosity in virtual online browsing and fact finding. Since launching my business, this has been in the strategic plan to debut, and now was the perfect time to bring it into reality. Along with the blog, check out our Insights Library which debuted along with this first blog edition. You’ll find articles on everything from the basics on life insurance, disability, long-term care to tax implications. These articles feature expertise from our many providers we resource to bring you the best possible options to consider. And the library will continue to grow as we identify more articles from our expansive network of resources.

In this blog you will learn:

• Why we call our blog Zinsurance 
• A case example from one of our clients that will get you thinking
• What’s Important to You – 7 Questions to Ask Yourself

Why Zinsurance?

Insurance is all about peace of mind. Plain and simple. That’s why we knew calling this blog Zinsurance was the perfect name. It’s more than just a name, though. It is at the very core of why we are in business – to prepare you for life’s unexpected, so you have peace of mind now and long into the future. 

We’ve all grown up with the Japanese term Zen, which means peace and calm and has become a word that is at the heart of a desired state of mind when practicing mindfulness, whether being out in nature or meditating on a cushion.

The term Zin is slang for Zinfandel. Anyone who has enjoyed a full-bodied Zin with dark chocolate knows the calming and enriching effect it can have on one’s mindset, especially when shared with others.  According to the Urban Dictionary, Zin also means someone who can adapt to any situation and get along with everyone. This spoke to me as well, since I founded this company on the premise that we weren’t onerous to one single insurance or financial product line but could adapt and accommodate a client’s needs based on what is truly desired and in their best interests.

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Not Repeating the Same Mistake

A client of mine in her boomer years had recently gone through the harrowing process of a Medicaid spend down for her mother and stepfather, so that a portion of the nursing home bill for the stepfather would be covered by Medicaid. A life insurance policy that was believed to have been in place was discovered to have been cancelled when the client was investigating it to see if it had any long-term care coverage.

To learn that the policy no longer existed was devastating enough, let alone no access to long-term care assistance. This ultimately caused this client to incur significant costs out of her own pocket to make sure her mother could stay independently in their home in addition to what needed to be covered until Medicaid kicked in. 

When this client came to me, she was determined to have a life insurance policy with a long-term care rider on it that would also grow in value beyond the death benefit. She didn’t want her children to go through what she went through should she ever need to be transitioned into a nursing home. She also wanted a separate policy that could ultimately be a death benefit to her grandchildren. We looked at several policies including ones that would cover well past 100 years, because this boomer was in premium health and wanted no surprises. She fully expected to live past 100 in age. She even joked she was going to break the record and live to be 123! 

For her, peace of mind looked like this. 1) A policy high enough to cover several years of nursing home care, as well as in-home care; 2) A policy that would grow in value beyond the death benefit; 3) A policy that would cover her well past 100 (in this case 125); and 4) A policy that could also be a monetary benefit to her grandchildren. 

With these perimeters in place, it was very clear that one size did not fit all. It never does actually, and that is why the ability to be adaptive is essential to effectively finding the coverage that is truly going to be the best option for your needs. 

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What's Important to YOU - 7 Questions to Consider

In the above case example, our client had very specific desires for her protection. It took a catastrophic event to help her see the value of getting this additional policy for herself. What questions should you be asking yourself so you can anticipate and be prepared for what life may hand you down the road. 

1. Have you planned financially for your later years? Covering costs for extra or increased healthcare costs and long-term care expenses should be thought about now, not later. Will you need to invest in modifications to you home to accommodate aging in place? 
2. What is your financial plan for your family should something happen to you? While we never want to believe our life will end unexpectedly, or we will become disabled, having peace of mind to know your family will be taken care of in the event of the unexpected is important to consider now. If you have younger children, how will college be covered? What will it take to cover your mortgage if your spouse is unable to cover it with their income? Is your spouse significantly younger than you so that you need to consider his or her needs after you are gone?
3. Have you considered the pool of money you will need for long-term care? I touched upon it in question number one, however, with life spans continued to get longer, this is a critical consideration that is better to consider earlier versus later while your health is in prime shape.  There are four ways to approach your long-term care funding. First, you could consider self-funding through saving a pre-determined amount of money based on an anticipated expectation of needing in-home or long-term nursing care. Second, you could purchase a stand-alone insurance policy specifically for long-term care that strictly pays out if your use it for long-term care. Third, you could do what my client did and purchase a life insurance policy with a long-term care rider. You can either choose a policy that has a death benefit only or one like my client that also increases in cash value over time. Fourth, you could determine to rely on Medicare, however, you need to understand the repercussions of spend-downs and how that will impact you, your spouse and family financially.
4. Do you have a written financial plan? According to a study by Fidelity conducted in 2019, only 18 percent of Americans have a written financial plan. Does this include you? Having a written plan helps you stay focused and intentional on how your financial picture looks now and well into the future. 
5. Do you have an up-to-date will or estate plan? According to Caring.com’s survey, the advent of COVID saw an increase in wills being created in the 18-34 age category, causing for the first time in history this age group more likely to have a will than the 35-54 age group. Overall, even with the scare of COVID, people with wills across the country represents about 32% of the population, a decrease compared to 2017. In an AARP study, the top two reasons people didn’t have a will or estate plan was either that they hadn’t gotten around to it (47%), or they didn’t believe they had enough assets to leave to anyone ( 29%). The most important reason to have a will or an estate plan is to provide clear directives to your family members. This also includes a living will and designating a power of health attorney and a power of financial attorney should something happen that requires someone else to make decisions on your behalf because of being unable to yourself. Most important, a will or estate plan takes the pressure and stress off of your family because of the clarity they offer in the documentation. ​
6. Does your financial advisor and/or family know where all your important information, documents, and policies are located?  If something happened to you, would your financial advisor or family know where all of your important documents are located including your will, insurance policies, the name of your attorney, who has power of attorney for decisions related to your health or financials, who is the executor or your estate, and the list goes on. ​
7. Will your family experience negative tax implications? With current legislators looking at decoupling the gift tax and estate tax, should this occur, it will have significant ramifications on your legacy plan for your family. Also, to be considered is capital gains tax implications. Have you considered alternatives to shield and protect your financial legacy so that more can be left to your family without as high of a tax impact?

As the title of this first blog implies, when it comes to your financial future, you should always be considering it for the long haul and how it will play out over the different stages and transitions in your life and what it will ultimately do for you and your family, especially when the unexpected happens.  

Look for future blogs each month as we help you prepare for life’s unexpected one topic and perspective at a time. 

For Your Future,

​Lori Capozza Zeind