ABSTRACT
General Types of Insurance Policies Covering Doctors................................................................. 162 Life Insurance Overview ........................................................................................................... 162 Term Insurance .......................................................................................................................... 162
Annual Renewable Term ...................................................................................................... 162 Level Term Insurance ........................................................................................................... 162 Decreasing Term Insurance .................................................................................................. 163 Triple X ................................................................................................................................ 163
Permanent Insurance ................................................................................................................. 163 Common Types of Permanent Insurance .............................................................................. 163 Whole Life ............................................................................................................................ 164 Universal Life Insurance ...................................................................................................... 165 Variable Life Insurance ........................................................................................................ 166 Other Varieties of Life Policies ............................................................................................ 166 The 5-100 Rule .................................................................................................................... 168
Death Benefit Settlement Options ............................................................................................. 168 A Look at Level Life Insurance Commissions: Of Interest to All Insurance Agents .................... 169 Taxation of Life Insurance ............................................................................................................. 170
Income Tax Free Death Benefit ................................................................................................. 170 Transfer for Value Problem ....................................................................................................... 170 Tax-Deferred Growth ................................................................................................................ 170 Withdrawals and Loans ............................................................................................................. 170 Violating the 2 out of 3 Rule ..................................................................................................... 171 Policy Replacement: Section 1035 Exchanges ......................................................................... 171 Modified Endowment Contracts................................................................................................ 172
Tax Warning! .................................................................................................................................. 172 Annuity Overview .......................................................................................................................... 173
Deferred Annuities .................................................................................................................... 173 Fixed Deferred Annuity ........................................................................................................ 173 Variable Deferred Annuity.................................................................................................... 174
Immediate Annuities ................................................................................................................. 174 Immediate Fixed Annuity ..................................................................................................... 174 Immediate Variable Annuity ................................................................................................. 175
Qualified Annuities.................................................................................................................... 175 Annuity Taxation ............................................................................................................................ 175
Qualified Annuity Taxation ....................................................................................................... 175 Nonqualified Annuity Taxation ................................................................................................. 175 Wealth Transfer Issues .............................................................................................................. 176
Health Insurance Overview ............................................................................................................ 176 What Types of Traditional Health Coverage Are Still Available? ............................................. 176 Fee-for-Service .......................................................................................................................... 176 Managed Care ........................................................................................................................... 177
Health Maintenance Organizations ...................................................................................... 177 Preferred Provider Organizations ......................................................................................... 177 Point-of-Service Plan ........................................................................................................... 177
High-Deductible Healthcare Plans ............................................................................................ 178 U.S. Medicare............................................................................................................................ 178 Medicare Premiums and Deductibles for 2014-2015 ............................................................... 178 Medicare Part A Premiums ....................................................................................................... 179 Medicare Part B Premiums ....................................................................................................... 179 Medicare Part D Premiums ....................................................................................................... 179 Medicare Part A Deductibles .................................................................................................... 180 Medicare Part B Deductible ...................................................................................................... 180 Medicare Part D Deductible ...................................................................................................... 180 The Patient Protection and Affordable Care Act ....................................................................... 180 The Four Basic (Colors) Health Plan Categories ...................................................................... 180
Bronze .................................................................................................................................. 181 Silver .................................................................................................................................... 181 Gold and Platinum ................................................................................................................ 181 Copper Plans? ....................................................................................................................... 181
The Essential Benefits ............................................................................................................... 181 The Carrot and Stick Approach ................................................................................................. 181 Who Gets Government Aid through the Health Insurance Exchanges? ................................... 181 Understanding the Premium Assistance Tax Credit .................................................................. 182 Health Savings Account ............................................................................................................ 183
Disability Income Insurance ................................................................................................. 183 Disability Income Taxation .................................................................................................. 185 Disability Income Statistics .................................................................................................. 185
Long-Term Care Insurance ............................................................................................................ 186 Medicare .................................................................................................................................... 186 Critical LTCI Policy Features and Markets ............................................................................... 186 ADLs ......................................................................................................................................... 187 Long-Term Care Insurance Taxation ......................................................................................... 188 Selecting Nursing Homes .......................................................................................................... 188
The Checklist ........................................................................................................................ 188 New Thoughts on LTCI ........................................................................................................ 189
General Types of Insurance Policies Covering Possessions .......................................................... 190 Homeowners (and Renters) Insurance Overview ...................................................................... 190 Replacement Cost versus Actual Cash Value ............................................................................ 191 Inflation Protection .................................................................................................................... 191 Other Homeowner Policy Endorsements .................................................................................. 191 Title Insurance ........................................................................................................................... 192 Renter’s Insurance ..................................................................................................................... 192
Unless you are a financial advisor, Certified Medical Planner™, or insurance agent advising physicians, there will be a strong tendency to skip this chapter. The word insurance seems to have that effect on many doctors. The physician is assured, however, that each topic, while important, will not be covered in laborious detail.
