Annuity
A long-term contract sold by life insurance companies that guarantees fixed or variable payments to the purchaser at regular intervals. Payments are usually scheduled to begin at a future time, such as retirement. Some annuities provide tax-deferred earnings, often as part of retirement plans.

Annuity Cash Refund
The contract for an annuity offering income for life may include a death benefit for the total premiums paid. When the annuitant dies, the annuity cash refund will be the net sum of premiums paid minus the amount received in annuity payments.

Annuity Certain
An option in an annuity contract that allows the annuity owner to select a future level of income covering a specified number of years (generally 10 years). If the annuitant dies before the end of this period, the remaining obligation is transferred to a designated beneficiary.

Annuity Joint Life
An annuity option for two or more individuals where payments cease at the death of the first annuitant.

Annuity Joint and Survivor
An annuity option that provides payments for two designated annuitants. Upon the death of the first annuitant, the surviving annuitant receives prearranged, continued payments for life, based on a percentage received by the first annuitant.

Annuity Modified Refund
In a contributory retirement plan, the annuity beneficiary of a deceased retiree receives the accumulated balance of the pension fund, which is referred to as the annuity modified refund.

Annuity Payout Option
The choice of how payments from an annuity will be received: as a fixed dollar amount, for a fixed period, or over the lifetime(s) of one or two annuitants.

403(b)
A qualified retirement plan similar to the 401(k), available to employees of nonprofit and government organizations.

Adjusted Gross Income (AGI)
The amount of income subject to federal income taxes. To determine AGI, subtract deductions (e.g., business expenses or IRA contributions) from gross income (employment income, interest income, dividends, and capital gains).

Aggressive Growth Fund
A mutual fund designed to maximize long-term capital growth, rather than dividend income, by investing in narrow market segments, small company stocks, and companies with high growth rates.

Annual Percentage Rate (APR)
The yearly cost of credit or a loan, expressed as a simple percentage. All consumer credit agreements and loans are legally required to disclose the APR.

Annual Report
A yearly statement that describes company management, operations, and financial information. The Securities and Exchange Commission (SEC) requires all corporations issuing registered stock to publish annual reports, which are sent to shareholders and also made available for public review.

Taking Steps

Although planning for the future of those you care about may seem difficult, there are many simple and effective measures you can take now to protect your estate and provide for your family. The financial experts will help you find these steps and put your plan into motion. They will also help you with more complex issues, such as using trusts to protect the financial future of your family and your business.

In order to ensure every detail is handled correctly, work closely with a team of experts including attorneys, insurance specialists, investment advisors and financial planners. They examine a range of strategies so you have the plan that works best for you. Whatever your goals, they will find a way to achieve them.

Putting Experience on Your Side

Income tax planning has always been a vital part of financial service. They can put this experience to work for you to help avoid many of the taxes that can take more of your estate than is necessary. The tax experts know the steps you need to take now to protect your finances in the future. They stay informed and up-to-date with the variety of strategies and options available for lessening the effect of estate taxes. Even if you are already working with an attorney, they can provide the financial and tax expertise you need.

Unlike firms that sell, manage or invest trust or personal assets, their only goal is to help create and implement an estate plan that meets your needs. In this way, you can be assured they have no outside or special interest in a particular plan, financial institution or product.

The four main factors that you will want to take into consideration when looking for a LTCI policy are: flexibility, eligibility, inflation, and duration.

Check to make sure that the flexibility of your policy allows for personal help so you can stay in your home for as long as possible before assisted living is absolutely necessary. Some of the policies will allow you to be paid cash for you to distribute as you please.

Make sure that your policy will pay for more than just what is medically necessary. These policies may not cover all of your needs.

Make sure that you are protected against inflation; you can place a clause into the policy that your payout adjusts 5% annually to cover you against raising prices.

Remember that a policy which lasts 5 years is probably more than you would need. A policy of two to three years will generally be enough.