Risk Management

Each of us encounter risks throughout our lives, and most losses can be emotionally and financially devastating. If there is a possibility of loss, it is important to protect yourself with the proper risk management strategies.

Our risk management process begins with a thorough review of your potential risk exposures. After analyzing your needs, our advisors will recommend the proper amount of coverage and the product type to best fit your needs. Whether you are concerned with outliving your savings, an untimely disability or death, comprehensive healthcare or a catastrophic loss, we will work with you to find a suitable strategy.

Lifetime Income Annuities
If you are like most retirees, you may have concerns about outliving your money. learn more >>
Life, Disability & Long-Term Care
If you could suffer financially due to your untimely death, disability or long-term care situation, we offer strategies. learn more >>
Affordable Care Act Health Insurance & Medicare
learn more >>
Property & Casualty
Property & Casualty coverage is something to consider as part of your plan to protect you and your family against a catastrophic loss. learn more >>

Lifetime Income Annuities

If you are like most retirees, you may have concerns about outliving your money. Many retirees have fixed income sources such as pensions and entitlements. These sources of income may not cover all of your expenses. Many retires want to have their essential expenses covered by a steady stream of income. Various types of annuities are available to provide a dependable source of fixed income:

  • Immediate Annuities
  • Deferred Fixed/Indexed Annuities
  • Deferred Variable Annuities

Annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59½ are subject to a 10% IRS penalty tax and surrender charges may apply.

Immediate Annuities allow you to invest a lump sum and receive an income for one or two lives. To protect your beneficiaries, the income can also be paid for a period certain. When investing in an immediate annuity, you lose control of your money, but you will receive the largest income stream of any annuity product available.

Deferred Fixed Annuities allow you to invest a lump sum and defer your investment and income. As you wait, your balance grows at a fixed rate of return. Over time, your potential lifetime income grows, and you can elect can elect single or spousal income options. Unlike immediate annuities, you own the account balance and have the ability to name your beneficiaries.

Deferred Variable Annuities allow you to invest a lump sum and defer your investment and income. As you wait, your balance grows at a variable rate of return. Over time, your potential lifetime income grows and you can elect single or spousal income options. Unlike immediate annuities, you own the account balance and have the ability to name your beneficiaries.

Life, Disability & Long-Term Care

Life Insurance
In the event of your death, it is important to protect your loved ones. The tax-free proceeds from a life insurance policy can help your family:
  • Cover your final expenses
  • Provide care for children
  • Pay for education
  • Eliminate debts
  • Fund savings and generate income
  • Create estate liquidity
Types of Coverage
Life Insurance can be a complicated topic. Many people feel they are covered through their employer, but this is not always the case. Group life insurance isn’t designed to meet all of your needs, and you risk losing this benefit if you change employers. It is important to review your benefits with an advisor to better understand your group coverage and determine if supplemental coverage is needed.

Cornerstone Wealth offers life insurance products which provide coverage for your current and future needs. Depending on your needs, many individuals elect a combination of coverage. The two types of life insurance are:

Term Life Insurance provides coverage for a specific period of time.

Permanent Life Insurance offers lifelong coverage when your needs exceed a specific period of time.

Disability Insurance
Your ability to earn income is essential, but very few people think to protect their ability to earn a living. If you cannot work due to an illness or injury, you must determine how to provide income for yourself and loved ones. Disability income protection ensures you’ll continue to receive income when you are unable to work.

Disability Insurance helps protect your current and retirement income needs. If the insured paid the premiums, the policy pays tax-free benefits. Most policies pay an annual benefit while you are disabled, while other forms of coverage offer a lump sum or even a retirement benefit.

Long-Term Care (LTC) Insurance
If you or a loved one face a chronic illness or disability, providing custodial and skilled care may be necessary. The type of care needed can range from assistance with simple activities, such as bathing and dressing, to skilled care provided by nurses, therapists and other professionals. Medicare covers limited expenses associated with long-term care, and the majority of your assets must be exhausted to utilize Medicaid. Long-term care expenses include care at home, an adult day care, an assisted living facility or nursing home. To many families, providing this type of care can be physically, emotionally and financially overwhelming. Having long-term care insurance can reduce the financial burden and ensure you can afford long-term care for yourself and your family.

Cornerstone Wealth offers innovative products to cover the cost of long-term care:

Traditional LTC insurance provides a tax-free benefit in exchange for an annual premium. Policies can be designed to cover one or more persons, including husband and wife, two partners, or two related adults. The premium is determined by the features and benefits included in the policy. Premium options include lifetime or limited pay, although premiums cease once the insured goes on claim.

Hybrid Life/LTC Insurance allows the insured to pay one lump sum or limited premium payments for long-term care benefits and a cash value life insurance policy. This type of policy provides a tax-free benefit for long-term care expenses, but it also provides a tax-free death benefit if the policy isn’t used to pay for long-term care. The policy also includes a cash value, so the policy owner can terminate the policy and recover the cash value.

Hybrid Annuity/LTC Insurance offers a tax-deferred annuity with long-term care benefits. The policy owner pays a lump sum premium, which is invested in a fixed or variable annuity. The policy offers tax-deferred growth for future income, but it also provides a benefit for long-term care expenses. Some policies only cover skilled cares, while others include home care and adult day care.

Affordable Care Act (ACA) Health Insurance & Medicare

Paying for healthcare is an important consideration throughout our lives. Many of us have coverage through our employer, while others are self-insured or qualify for Medicare. Understanding healthcare options is complicated, so it’s important to work with a qualified health insurance professional.

ACA Health Insurance requires Americans to be covered by a healthcare policy. Depending on your income, you may be eligible for a stipend to offset the annual premium. If you are nearing retirement but not yet eligible for Medicare, premiums can become a financial burden. Often a proper portfolio distribution strategy can significantly lower your premium outlay. When faced with such situations, seeking professional guidance is imperative.

Medicare is our country’s health insurance program which is available to individuals age 65 or older, and recipients of social security disability benefits under age 65.

Once eligible, Medicare Part A and Part B cover the majority of your doctor and hospital expenses but offer no coverage for prescription drugs. Private insurance companies offer policies to cover the gaps in Part A and Part B including Medicare Supplement, Medicare Advantage and Part D prescription drug plans. Based on your personal circumstances, our team can assist you with navigating the options available to you.

Property & Casualty

Providing a secure future for yourself and your family typically involves investing in a variety of assets. As your portfolio grows, you build significant value in savings accounts, real estate and other investments. As your net worth grows, it becomes even more important to protect yourself against financial loss. We spend our lives building our net worth, and none of us can afford to start over. Unknowingly, many people expose themselves to significant risks. We can often alter your risk management strategy and provide additional protection against loss.