In Episode 23 of the Intelligent Equity Podcast, host Ryan Kiefer talks with Todd Domsitz of Allstate Insurance. Todd shares why it’s important to protect not just your assets with proper insurance coverage, but also your income. He describes a special monthly income term policy that provides a way for your family to keep paying your mortgage even when faced with unexpected life events.
Episode Highlights:
- Todd is a financial specialist. He helps people with life insurance, retirement planning, disability and long-term care planning.
- He spent twenty years with New York Life and came to Allstate eight years ago.
- He helps people plan anything that would replace their income when their ability to earn that income stops.
- They have 50 other partner companies to help customers find the right product.
- If someone comes to him and wants to roll over a 401k to an IRA, can they do that?
- Absolutely. He does a lot of rollover business.
- Allstate is in the business of protecting people's assets so they do a lot of retirement planning.
- Allstate came up with a product with a monthly income term policy.
- Sometimes when you hand someone a lump sum when paying out a life insurance policy, they don't know what to do with it.
- The monthly income term product provides a small lump sum and then provides a monthly income over a two, five, or ten year period.
- This is very comparable to purchasing term life insurance.
- Imagine your family is used to having 5-10k per month and then you pass away. This product allows them to keep receiving that income to continue to pay bills.
- Sometimes they'll combine that with a bigger policy so you can pay off your mortgage and bills but still provide an income stream.
- This type of policy works particularly well for surviving spouses who are not of retirement age.
- You want to make sure that you have short-term or long-term or preferably both short-term or long-term disability insurance.
- People will spend $1,000 per year to protect a $40,000 car or $1,000 a year to protect a $300,000 home but they spend nothing to protect their income.
- Generally, disability insurance costs no more than your auto or home insurance.
- There's a likelihood that you will become disabled for at least a short period between now and age sixty-five.
- We know for certain that you are going to pass away at some point. Life insurance is a necessity.
- You've got to make sure you've got an income stream that can ensure that your mortgage can be paid.
- They sit down with people on a regular basis to make sure they can hang on to assets they are accumulating.
3 Key Points:
- Protect your income with short and long term insurance options.
- A monthly income term plan provides an alternative to traditional life insurance.
- Insurance will help you retain the assets you are accumulating.
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