Consider Reviewing Your Insurance Package

Hello from Sycamore,

Insurance is a way to transfer risk from you to a larger group of people through a firm, the insurance company. For example, many people choose to insure against potentially bad outcomes that could be catastrophic like the death of the family earner in the case of life insurance or large unexpected medical expense through medical insurance. On the other hand, you may not choose to have collision or “full coverage” insurance on your $3,000 extra vehicle. Assuming a collision in which you walk away just fine but the car is totaled, the $3,000 loss may be something you can live with.

There are many forms of insurance: life, medical, homeowners, auto, disability, malpractice, and many more. All insurance has a time and a place. For example, we often review what, if any, life insurance you may have during our annual reviews. Life insurance can be a handy tool that you purchase when you need it but at times, we find that there are still policies in force that may not be needed anymore. On the other hand, we sometimes see situations where people are not insured to the extent that possibly they should be in areas like long-term disability or personal liability insurance.

Having the necessary insurance for your individual circumstances can be an integral part of your overall financial plan. It’s important to meet with your insurance agent periodically to review your overall insurance package to see where you may be over or under-insured. Of course, we would be happy to give you some general insurance guidance as well if you have any questions as you review your coverage.

As always, do not hesitate to reach out to our offices at (765) 455-1554 to discuss this.

Thank you for your continued trust and support,

Sycamore Financial Group

***This article is distributed for general informational and educational purposes and is not intended to constitute legal, tax, accounting, or investment advice.***

By |2023-02-14T01:21:22-05:00February 14th, 2023|2023 Newsletters|0 Comments

Long Term Care Insurance – Summer 2004

Hello from Sycamore,

Should you consider long term care insurance?

Almost every time we are completing a financial or investment plan the discussion gets around to long term care insurance. Of course most clients want to know three things…1) Do I need it? 2) How does it work? & 3) How much does it cost?

Do you need it?

Lets look at the needs part of this threesome first. First, you should understand that as we identify who needs this type of insurance we are considering the financial need only. Your personal preferences are not a part of this calculation but of course when you are applying our analysis, your “feelings” are VERY important. The annual cost of staying in a nursing facility for one year in Indiana, is about $50,000 and the average stay is 2.6 years, so who really needs long term care insurance? Well, we can easily eliminate two groups of people, those that are very wealthy & have substantial income and those that have virtually no assets or income except social security.

If you have substantial assets, and a reasonably good income, we feel that you should consider self insuring and do not necessarily need long term care insurance. As an example, let’s assume that you have investment assets of $600,000 and a current income from Social security and pension of $24,000. The income you receive would be used to pay almost one half of the cost of your care. If your $600,000 was invested and earned only 5% per year, it would provide another $30,000 annually. That amount would be enough to pay for the balance of your care. Under this scenario, you could self pay and still maintain your current assets. This example assumes a very simple situation. You, however will likely will need to consider other variables such as a spouse, dependent or other financial obligations.

For individuals that have very limited assets, we feel that insurance is not needed because Medicaid will very soon be paying for the care. Additionally, long term care insurance is an additional expense and if you have limited resources you may find it unpleasant to pay the premiums.

We generally recommend that the clients with assets between 100,000 and $600,000 and the desire or need to protect those assets for their survivors should consider long term care insurance.

How does it work?

The are several different kinds of policies and a variety of coverage’s available. One that we feel should be given serious consideration is the Indiana Long Term Care Insurance Program. The following is a very brief discussion of how this program works.

Administered by the Office of Medicaid Policy and planning, these policies are a partnership of sorts between Indiana and certain insurance companies who have agreed to offer long term care policies that meet the standards set by the state. The goal of these policies is to allow you as an insured the option of protecting a part or all of your assets if you need to go to a long term care facility. There are variations on the theme but the general drift is that a holder who has purchased a policy with a minimum benefit that will cover the full cost of an average stay in a facility (about $187,613 currently), will qualify for Medicaid without spending down their assets. This does not protect your income, only your assets.

How much does it cost?

The premiums vary depending on the amount of coverage you select and your current age and health. We have listed a few samples below but your best path is to get a personal quote if you feel that you need or would like the coverage.

These selected premiums are for policies that will give you asset protection under the Indiana Plan. They are general estimates only.

  Aproximate Annual Premium

If you have specific questions or would like more information, feel free to send an e-mail or call.

Thanks for your business and trust,

Sycamore Financial Group


Past performance does not assure future results. Investors cannot invest directly in the stock market indexes such as the S&P 500. Invest return and principal value of an investment will fluctuate. Investor value, when sold, may be worth more or less than their original cost. The material in this presentation is for illustrative purposes and does not reflect any particular investment.

By |2020-01-13T06:02:48-05:00March 12th, 2004|2004 Newsletters|0 Comments
Go to Top