As a Licensed Agent with New York Life Insurance Company, Jeffery A. Perry is committed to providing individuals, families, and businesses with life insurance and financial products that meet their needs. Jeffery is a native to the San Francisco bay area with strong familial ties to Mexico and speaks Spanish and Portuguese in addition to English. Jeff is trained to help you identify your needs and goals, while also building a strategy that will help you reach your objectives. From key-person and executive bonus policies for businesses to family and individual plans, Jeff is experienced in designing customized solutions for each situation.
Passare Expert Series Kickoff | Jeff Perry
Welcome to the Passare Expert Series, a forum where we give our panel of experts an opportunity to speak directly to you. Today we’d like to introduce Passare contributor Jeff Perry, a licensed agent with New York Life Insurance Company. He will advise you on how to build an insurance strategy that will meet your End of Life goals.
Passare: Welcome Jeff, we are pleased to have you as a Passare partner. Why is life insurance such an important part of a solid Estate Plan?
Jeff: I’m happy to be part of the Series. Life insurance plays a key role in any Estate Plan because it helps protect your assets while giving you peace-of-mind. Whether you’re considering life insurance or a long-term care policy, a solid insurance plan eases some of the financial fears that comes with End of Life.
Passare: When it comes to Estate Planning, how do you determine coverage that is right for you?
Jeff: Life insurance policies can cover a range of expenses like any outstanding debts you may have (like your child’s education or paying off the home mortgage). My advice is to talk with an insurance professional that will listen to your concerns and recommend a policy that best suits your needs. In many cases, the best recommendation is a combination of policies.
Passare: Can you give us an overview of the different types of insurance policies typical in an Estate Plan?
Jeff: Here is an overview of the “big four”; each serves a specific purpose:
Universal Life Insurance
This is a great policy for people who have fluctuating seasonal income like teachers because it provides flexibility with the amount of premium you pay each month. You can lower your premium when business is slow and raise it when your income is higher. This allows you to keep your policy enforced without having to pay a set amount each month. During good months, you may even opt to contribute more so your policy grows.
Whole Life Insurance
This option offers more guarantees, but less flexibility. You pay in the same amount each month, usually with guarantees on: the cash value component, interest on the cash value, and guaranteed death benefits. Whole life may also offer dividends that can add to the cash value of your policy. Some insurance companies may also offer the option of a paid up policy, which means it’s paid off but is still enforced.
Term Life Insurance
Always temporary, term policies are the most popular because it’s what most companies offer employees in their group insurance plans. Strictly for death benefits, it is often used to protect a particular asset that will be paid off over time. For example, say you have a home mortgage and you want to protect it. You may get a term policy in the amount of your mortgage. So after your mortgage is paid off you drop your policy because you won’t need it anymore. You don’t want to keep a term policy permanently because it would become expensive over time and it wouldn’t make sense to keep it.
Long Term Care
Long-term care insurance is a fairly new concept and because of that it isn’t as prominent in most people’s estate plan. A lot of people do not buy it because they think – or hope – that they will pass away peacefully in their sleep. No one wants to actually use a long-term care policy but its purpose is to protect your estate from unexpected events. Most people associate long-term care with nursing homes, however it can pay for assisted living or elder care facilities. In addition, most people think it’s just for elderly people when realistically anyone may need it.
Passare: What do you find interesting about our Passare?
Jeff: What interests me about Passare is that you have a service that everybody needs. So many people don’t think about End of Life planning until they are in a crisis, and then they don’t know what to do. I read something on your site about “wanting a graceful exit in this life.” I think that’s really true. Passare is a very valuable resource for people to plan for themself or for a loved one. The various tools and information Passare provides can help anyone create a solid End of Life plan.
Passare: Thank you Jeff. We appreciate your perspective and look forward to further discussions with you about how life insurance fits into End of Life planning.