tag:blogger.com,1999:blog-6660460810418738523.post1238514245616784207..comments2007-05-14T01:19:34.477-04:00Promod Sharmahttps://profiles.google.com/106341044498666213775noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6660460810418738523.post-52738089544639942432007-05-14T01:19:00.000-04:002007-05-14T01:19:00.000-04:00dj, the post about critical illness is <A HREF="http://riscario.blogspot.com/2007/05/critical-illness-basics.html" REL="nofollow">here</A>. I hope it helps.Promodhttp://www.blogger.com/profile/11239089296177027814noreply@blogger.comtag:blogger.com,1999:blog-6660460810418738523.post-37275391536740103382007-05-09T21:32:00.000-04:002007-05-09T21:32:00.000-04:00dj, you can learn more about critical illness insurance here. Your timing is good. This week, I spent several hours getting updates from experts. So I've got fresh insights to share. <BR/><BR/>I'll post an article within a few days. <BR/><BR/>The product is simple enough: you get a lump sum a month after something dreadful happens to you (as defined in the contract). <BR/><BR/>I'll skip the usual fear mongering statistics and give you tips on what you can ask your advisor.Promodhttp://www.blogger.com/profile/11239089296177027814noreply@blogger.comtag:blogger.com,1999:blog-6660460810418738523.post-12506368827059860242007-05-09T20:51:00.000-04:002007-05-09T20:51:00.000-04:00Thanks for the comments, financialjungle.com.<BR/><BR/>I'm glad you're preparing for longevity. <BR/>1. With the dividend paying stocks, are you going to live off the dividends? That'll give you less income than selling some stocks periodically. <BR/>2. If you're going to sell stocks, your portfolio is subject to market fluctuations. Selling in a down market makes it harder to recover the losses when markets recover.<BR/><BR/>Term insurance is best for temporary needs because it's gone by the ages people normally die. If you want to maximize your financial legacy (e.g., for family or a charity), you'll want to consider the effect of taxes upon your death. If you have stocks, for example, your estate is taxed as if you sold them just before death. So there's tax on the capital gains. Permanent life insurance is often used as a cheaper way to pay those taxes, leaving a larger estate after tax.<BR/><BR/>Disability is much more likely than death during the working years. As is getting a critical illness. Naturally, we think that we'll be spared and don't want to "waste" money on insurance.Promodhttp://www.blogger.com/profile/11239089296177027814noreply@blogger.comtag:blogger.com,1999:blog-6660460810418738523.post-55584493504850620692007-05-09T11:10:00.000-04:002007-05-09T11:10:00.000-04:00Where do you recommend getting more info on critical illness insurance? (before speaking to my salesperson)djhttp://www.blogger.com/profile/16170352853017782328noreply@blogger.comtag:blogger.com,1999:blog-6660460810418738523.post-544731810975705532007-05-08T02:23:00.000-04:002007-05-08T02:23:00.000-04:00Very well organized, Promod. <BR/><BR/>Longevity – I have my own custom-made annuity: a diversified basket of dividend paying stocks.<BR/><BR/>Mortality – Term insurance rocks. Regarding estate planning, my opinion is that we should only buy insurance to protect against catastrophes, not to maximize profits. I can see insurance premiums being higher than the tax-saving by the time you hit 70.<BR/><BR/>Disability – Very well written. I’m terrified of becoming disabled. Disability insurance is arguably more important than life.FinancialJungle.comwww.financialjungle.comnoreply@blogger.com