• Insurance,  Podcast

    Face The Fear Podcast – Tim Kukieza, Disability Insurance Expert

    What is disability insurance, how does it work, and when do you need it? Tim Kukieza, Disability Insurance Expert, answers these questions and many more on this podcast episode – all while cracking a few jokes along the way. Listen in to find out:

    • If someone is young and healthy, why do they need disability insurance now?
    • If someone already has disability insurance through their employer, is there any reason why they may need to buy additional coverage?
    • What exactly does Disability Insurance cover? Will it replace my entire income?
    • How much does DI typically cost for a Millennial?

    Don’t forget to subscribe and leave a review! XOXO

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

  • Insurance,  Podcast

    Face The Fear Podcast – Jenny Crabill, Life Insurance

    On this episode of Face The Fear, we break down the basics of life insurance with Jenny Crabill, a fellow Millennial and Advanced Life Insurance Case Analyst. Here are a few of the questions Jenny helps us answer:

    • What exactly is life insurance & why is it important?
    • Why do I need life insurance now if I’m young, healthy, and don’t have anyone depending on my income?
    • When is the best time to buy life insurance?
    • How much does life insurance really cost?
    • How do I purchase life insurance?

    LifeHappens.org

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

    Don’t forget to subscribe and leave a review! XOXO

  • Podcast

    Face The Fear Podcast – Chad Eyrich, Long Term Care

    In this episode, we sit down with Chad Eyrich, a Long Term Care Professional, to talk about what Long Term Care is, why it matters, and how to make sure you and your family have a plan in place if a Long Term Care event occurs. 

    Here are a few of the questions we get answered:

    • What is Long Term Care?
    • How does Long Term Care coverage work? What kind of options are available for Long Term Care coverage?
    • Why should Millennials be concerned about Long Term Care, especially when they are still so young and years away from needing this kind of service?
    • How can a Millennial start a conversation with their parents or grandparents about Long Term Care?

    Here are some quick Long Term Care Stats:

    • 52% percent of people turning age 65 today will need some type of long-term care services in their lifetimes
    • Average annual cost of private room in a nursing home (2017): $97,455
    • 34.2 million Americans have provided unpaid care to an adult 50 or over in the past 12 months
    • (https://bit.ly/2Mn8oL7

    Contact Us: facethefearfw@gmail.com

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  • Insurance

    Disability Insurance: The Base of Your Life Event Planning Strategy

    It’s reported that 40% of millennials would buy this product if they knew about it. No, it’s not the newest iPhone or even the latest Yeezy’s. It’s disability income insurance. Easily considered one of the most important insurance products available to your life event planning financial strategy. Trust me, I know what you are thinking. *Oh, great… another insurance policy that I need to buy but I’d probably be fine without.*


    I’ll tell you right now, you aren’t fine without it.

    Now what exactly is disability income insurance? Disability insurance is the foundation to all financial plans, as it protects and typically replaces about 60% your income in the event of an injury or an illness that prevents you from being able to work at your job and collect a paycheck. There are a two main types of disability insurance; Long Term and Short Term. Both are offered either on an individual basis or group basis offered through an employer. People insure their homes, cars and personal property yet they fail to insure the one thing that makes all of that a reality: their income! Here are some facts that might surprise you:

    • 1 in 4 Twenty-Year Old’s will have a disability event before they retire.
    • Most disability events last an average of 31.6 months.
    • More than 67% of Millennials have less than $1,000 in their savings account to cover any kind of emergency.

    Surprised? I know I was when I heard those statistics. Now with those numbers in front of you, you can easily see how a savings account with less than $1,000 wouldn’t sustain your Starbucks addiction, let alone pay your rent, car payment, or student loans for an extended period when dealing with an injury or illness that prevents you from working and collecting a paycheck.

    Many Millennials have a difficult enough time paying bills on time and not paying those bills with a credit card. Now imagine how a disability event could amplify your already difficult financial situation.

    While many employers do offer group disability insurance, those policies will only cover a portion of the income you typically receive as they are capped at certain benefit amounts, usually around 60% with a strict capped dollar amount. Some employers have disability insurance that you can elect in or out of, while other employers automatically include this coverage in their benefit package and is typically employer paid. Disability insurance on an individual basis tends to be much stronger and is built around your unique parameters, such as age, occupation, annual income, and medical history. As stated previously, the typical replacement of your income is around 60%, as insurance providers need to give you some incentive to return to work when healthy and able to do so. With that said, there is also the option of supplementing your group disability coverage with an individual policy to get the income replacement percentage past 60%, but keep in mind your income will never be 100% fully replaced through a disability income insurance policy.

    An individual disability insurance policy can be tailored around your specific financial needs. The typical design of a disability insurance policy includes an elimination period, along with a benefit period, and a specified definition of disability that determines how the insurance carrier considers you disabled. The elimination period is the beginning period of a disability claim that must be satisfied before disability benefits can be paid out on a claim, typically 90 days. Once that elimination period has been satisfied, the specified benefit amount (income) would be paid out for however long you are deemed disabled, which is determined by the definition of disability outlined in the policy. Or, if you were permanently disabled, the specified benefit amount (income) would pay out for the whole benefit period, which can range between 2 years and all the way to age 67 (Long Term Disability Insurance). There are several different definitions of disability available to disability insurance policies and the need for each is determined by a couple of different factors. The 3 main definitions of disability include: a not-engaged definition, a reasonable definition and a true/pure own occupation definition. Depending on your doctor’s prognosis of the disability and treatment plan, these definitions of disability are the determining factors that will either pay out a monthly disability benefit…or not.

    To sum it all up, you should be protecting your income, the thing that makes life happen! Obtaining disability income insurance on an individual basis is quite easy. Get in contact with a licensed financial professional and start the conversation by stating you would like disability income insurance to set the foundation of your life event planning financial strategy!

    Article Contributed By: Cameron Hull

    Contact Us: facethefearfw@gmail.com

  • Insurance,  Retirement Planning

    The Bills and The Fees: How to Talk to Your Parents About Money (Without Making It Awkward)

    If the thought of talking to your parents about money makes you cringe, you’re not alone. In fact, the majority of Americans would rather talk about “the birds and the bees” than “the bills and the fees” of finances with their own family. When given the choice, we would prefer to talk about our own DEATH than asking our parents about their will or estate. (Now, that is just ridiculous). There’s no question that money is a taboo topic that makes you want to run 100 mph in the other direction anytime you hear the words “budget” or “debt.”

    But, why is it so uncomfortable to talk about cash money with our family? And does it even really matter? After all, you’ve made it this far without diving into the depths of financial awkwardness with your parents. What’s the worst that could happen?

    Well, here’s a few stats for ya:

    • 52% of people turning 65 will need some form of Long-Term Care
    • 64% of people with Long-Term Care needs rely exclusively on friends and family for care
    • 25% of all caregivers are Millennials
    • Average annual cost of caregiving ranges from $18,000 (Adult Day Care) to $91,00 (Private Room in Nursing Home)
    • 55% of Americans have no will or plan to transfer assets at death
    • Only 35% of Baby Boomers are confident that they are financially prepared for retirement

    To summarize these lovely statistics: the odds that your parents may eventually require some form of Long-Term Care (assisted living, nursing home, etc.) during their lifetime is 1 in 2 (a coin flip). The chances that you will need to help pay for some of these costs are also quite high, especially if your parents don’t have any kind of long-term care insurance coverage or other savings in place. AND, if your parents are in the minority of those who have already established a will, congratulations! But, even if they do have a will, are you sure it’s up-to-date? You’d hate for your mother’s ex-husband’s cousin’s half-brother to end up inheriting money that was meant for you, right?

    (Yikes, talk about awkward!)

    With that said, yes. Having a conversation about finances with your parents is obviously very important. So, what are you waiting for?? Go ahead and throw those taboos to the wind and dive right in! OK, easier said than done, right? Let’s look at three simple conversation starters that will make the money talk a little less awko-taco.

    1. You’ve taken good care of me, so I want to take good care of you.

    When I was visiting my parents over the holidays, I asked them if we could set aside some time to talk about money. Specifically, I wanted my parents to know that, if anything should ever happen to them, I would be adequately prepared take care of them and their finances. Just as my parents have spent years caring for me and preparing me for my future, I want to be able to return the love by taking care of them when the need arises. We discussed what kinds of insurance policies, investments, and savings they have in place, where they keep financial records, and who they use as a trusted financial advisor. I didn’t ask to see any financial statements or specific policy information (because that’s usually where the awko-meter starts to rise) — only where this information is kept, so I know where to look if I need to access it at some point in the future. By emphasizing that my purpose behind the conversation was love and care for my parent’s wellbeing, we were able to talk open and honestly — without any hurt feelings or awkward outcomes.  

    YESSSSSSSS

    2. I’m interested in visiting a financial advisor, but I’m not sure where to start. Would you mind introducing me to yours?

    This is a win-win conversation starter. Not only does it provide you an opportunity to visit a financial advisor for the first time (without spending lots of money), but it also provides an ideal environment to discuss difficult financial topics with your parents. Their advisor can guide the conversation and act as a third-party mediator if needed. While meeting with the advisor, you may want to discuss your parent’s current retirement plan, including protection against long-term care events, and to review any beneficiaries on your parent’s insurance policies to ensure they are up-to-date. (You’d be shocked how often an ex-wife, ex-husband, or estranged family member ends up receiving a death benefit, simply because policy information was not current). AND, while you’re in the office, you might as well glean some insight from the advisor on your own financial plan. Most likely, the advisor will be more than willing to assist you, as they see you as a potential future client. (If the advisor doesn’t see your value, you may want to look for another advisor).

    Even if your parents don’t already have a trusted financial advisor, this is the perfect time to find a reputable professional together. It will be an opportunity to bond as a family, while also tackling your finances in an efficient and holistic manner.

    3. Do you have a legacy plan? AKA: If you die tomorrow, what kind of legacy to do you want to leave and how do you want it accomplished?

    Most people don’t like to think about dying until a death actually occurs. Can’t blame you. Death isn’t the first topic that comes to my mind when I think of “fun conversation starters.” BUT, the problem we create when we avoid talking about death is that we miss out on the opportunity to plan for a legacy — until it’s already too late. While your parents may want to leave their house behind to the family, donate their art collection to a local museum, and divide the rest of their assets equally among you and your siblings– if they don’t have these wishes expressly written in a will, they’re not likely to happen. When someone dies without a will (called intestate in legalese), your state will then determine how your assets should be dispersed. This could be okay, except that your state has no idea that you don’t even really like your spouse, you’re estranged from your son, and your daughter is a compulsive shopper who blows every penny she has on lottery tickets. But, the state doesn’t really care about your family issues. It will still divide up your assets among each of these individuals anyway. (Sorry ‘bout your luck).

    This is exactly why a will is important.

    Contrary to popular belief, establishing a will (and keeping it current) is not as much of a headache as many people think. For a simple estate (think: relatively small and not paying estate taxes), it may only cost around $100-$150 for an attorney to draft a will. (If you’re looking for a lawyer, start here). Or, you can also write your own will by using a reputable online software program or following a template. HOWEVER, if you complete your will on your own, you are doing so at your own risk, as each state has different regulations surrounding what is required to validate a will and, if done incorrectly, it may not hold up in court.

    I’ve only scratched the surface on the importance of writing a will (both you and your parents). And I haven’t even started to explain all of the incredible information that can be contained in a will, such as designating power of attorney or establishing a living trust. But, I realize I’ve already bored you to tears, so I’ll save these enthralling topics for a different time. (Psst: stay tuned for an upcoming Face The Fear Podcast episode on Estate Planning 101, coming soon!)

    In summary, you know you should probably strike up a conversation with your parents about money. It’s on your to-do list, right below “Clip grandma’s toenails” and “Watch paint dry.” At least now you’ve got a few conversation starters in your back pocket to break the ice. I promise, it won’t be as bad as you think. (Or, maybe it will be. In that case, I don’t know you). Either way, challenge yourself to start a conversation with your family about finances this week. Even simply cracking the door open today could provide fruitful opportunities for future discussions and prevent a flood of heartache, confusion, and financial strain later in life. Friend, it’s time to #FaceTheFear!

    Written By: Kaitlyn Duchien

    Contact Us: facethefearfw@gmail.com

  • Insurance

    Life Insurance: What Kind Is Best For Me?

    Welcome back! Hopefully you read my last article, where I discussed three reasons why considering life insurance should be a priority. If one of these reasons resonated with you, or you have one of your own, I want to give some thoughts as to the different types of life insurance. Broadly, there are two categories: term insurance and permanent insurance.

    Term insurance is simple – you pay an annual premium for the number of years in the term, and, other than a few exceptions, the insurance company will pay your beneficiary the death benefit if you were to die during the term of the policy. For example, I own a 20 year term policy, running from 2018 to 2038. If I were to die in 2030, my wife would receive the $1,000,000 death benefit, tax-free.

    Permanent insurance is a little more complex. Within the category of permanent insurance, there are several types, but we will focus on the two main “flavors.”

    First, there is “protection-based” permanent insurance. Protection-based permanent insurance is designed to provide a death benefit for your entire life. Instead of securing a death benefit for a 20 year period, this kind of policy can provide a death benefit to your beneficiary regardless of how long you live.

    Second, there is “accumulation-based” permanent insurance. It also has a death benefit, but is really designed to grow cash value within an account housed at the insurance company. A portion of the premium you pay goes to cover the cost of your death benefit, a portion goes to the insurance company’s operating expenses, and a portion goes into an account for you. As you pay premiums, the cash in the account grows. Depending on the strategy of distributions, you can leverage this cash value in tax-advantaged ways.

    So you are probably thinking…why wouldn’t I always buy permanent insurance over term, as it has much more benefit?

    You guessed it: permanent insurance is more (and can be much more) expensive than term insurance. But, most millennials are at a point in their financial journey where permanent insurance is not only too expensive, but is unnecessary. You are likely better off focusing on maximizing your contributions to tax-advantaged accounts like a 401(k) or IRA, but also securing term insurance to protect your finances. (And, if you remember from the last article, term insurance sometimes can be converted into permanent insurance!)

    Remember: the cheapest day to buy life insurance was yesterday. If you just need term coverage, you are in good company. If you can afford permanent coverage, that may be a better fit. Either way, make sure you are protecting the financial plan you work so hard to build.

    Want more information on life insurance? Let’s talk! Face The Fear is here to help millennials make smart financial decisions that fit their lifestyle.

    Article Contributed By: Xavier Serrani

    Contact Us: facethefearfw@gmail.com.

  • Videos

    Welcome to Face the Fear!

    Hi Friends! Nicole Ellsworth and Kaitlyn Duchien here. We are two motivated millennials facing the fear of our financial futures. Join us on the journey, as we dive into topics such as investing, retirement planning, life insurance, budgeting, and so much more.

    YouTube: https://www.youtube.com/channel/UC5PcXSzVvR9KZKWm4Ihh3pg

    Instagram: @Face.The.Fear

    Twitter: @Face_The_Fear

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    Podcast: Face the Fear (on iTunes, Spotify, and Stitcher)