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After a Historic 2023 COLA, What Can We Expect in 2024?

August 8, 2023

As we have experienced rising inflation in the past few years, the topic of Social Security and its cost of living adjustment (COLA) has once again become a focal point of interest for millions of Americans. The Social Security Administration (SSA) often makes adjustments to benefits to help maintain their value relative to inflation. These adjustments are announced in October during most years and take effect the following January.


So, what can we expect ahead of this October’s update? As we wait to hear from the Social Security Administration, let’s review how they calculate each year’s COLA. Then we can discuss what you might be able to expect in January. 


The Social Security COLA is a crucial annual change that aims to protect the purchasing power of Social Security benefits against the rising cost of living. This adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation that tracks the prices of goods and services typically purchased by urban workers and clerical employees. If the CPI-W increases, beneficiaries can expect a COLA increase to keep up with inflation.


2023 COLA Recap. Before we delve into the predicted 2024 COLA, let's take a brief look back at the 2023 adjustment. In 2023, Social Security beneficiaries received a substantial 8.7% COLA, the most significant increase in decades. This sizable adjustment came as a result of surging inflation rates and rising costs of essential goods and services, such as food, housing, and healthcare.


Predictions for the 2024 COLA. While it's important to note that no official announcement has been made at this time, most financial analysts and economists are projecting a moderate COLA for 2024. Based on economic indicators and inflation trends leading up to the adjustment calculation period, experts anticipate a COLA ranging from 2.0% to 3.0%. 


We’ll be sure to update you on the 2024 Social Security COLA when the news is released in October. For now, remember that Social Security is meant to serve as supplementary retirement income only, and keep in touch with us so that we can help you investigate other retirement planning opportunities.

The Benefits of Hybrid Life and Long-Term Care Insurance Policies

March 18, 2025
Planning for both future healthcare needs and financial security can be challenging. A hybrid life and long-term care (LTC) insurance policy offers a unique solution by combining life insurance benefits with coverage for long-term care expenses. Depending on exact needs and circumstances, this type of policy might be a smart choice for retirees and their families. What Is Hybrid Life and Long-Term Care Insurance? Hybrid policies blend life insurance coverage with long-term care benefits, providing financial support whether you need extended care during your lifetime or leave behind a death benefit for your beneficiaries. Unlike traditional long-term care insurance, which operates on a "use it or lose it" basis, hybrid policies ensure that your investment isn’t wasted if you never need long-term care. Key Benefits of Hybrid Policies Dual Protection – These policies provide coverage for both long-term care costs and life insurance payouts, ensuring that funds are used efficiently. Guaranteed Benefits – If long-term care is not needed, your loved ones will still receive a death benefit payout. Premium Stability – Traditional LTC insurance premiums can rise unpredictably, but hybrid policies often have fixed or limited payment periods. Flexible Use of Funds – Policyholders can use long-term care benefits for various needs, including home care, assisted living, or nursing home care. Potential Tax Advantages – Benefits used for qualified long-term care expenses are often tax-free, providing additional financial relief. Is a Hybrid Policy Right for You? A hybrid life and LTC policy is ideal for those who: Want to ensure their long-term care needs are covered while still leaving an inheritance. Prefer predictable premiums without the risk of losing their investment if care isn’t needed. Are concerned about rising healthcare costs in retirement. Have funds available for a lump-sum or limited-time premium payment. Plan for Your Future Today Choosing the right insurance policy is crucial for securing your financial future and protecting your loved ones. If you’re interested in learning more about hybrid life and long-term care insurance, contact us for expert guidance on finding the best coverage for your needs.

Burial Insurance vs. Traditional Life Insurance: Which Do You Need?

March 11, 2025
When planning for the future, many people consider life insurance to ensure their loved ones are financially protected after they pass away. However, not all life insurance policies serve the same purpose. Two common types are burial insurance and traditional life insurance, and understanding the differences can help you make the right choice for your needs. What Is Burial Insurance? Burial insurance, also known as final expense insurance, is a type of insurance policy designed specifically to cover funeral and burial costs. Policies typically range from $5,000 to $25,000, ensuring that expenses such as cremation, a memorial service, or a casket are paid for without placing a financial burden on family members. While burial insurance provides peace of mind for covering end-of-life expenses, it has limited benefits and does not offer financial security beyond funeral costs. It won't help cover other expenses like: Medical bills left behind Living expenses for surviving family members Mortgage or debt payments Replacement income for dependents What Is Traditional Life Insurance? Traditional life insurance, which includes term life and whole life policies, offers a broader financial safety net for beneficiaries. These policies provide a larger death benefit, often starting at $100,000 or more, which can help with: Paying off outstanding medical and credit card debt Replacing lost income for surviving spouses or children Funding education costs for children or grandchildren Covering long-term living expenses Unlike burial insurance, traditional life insurance is meant to provide lasting financial protection for your family rather than just covering funeral costs. Which One Do You Need? The best option depends on your financial situation and what you want your insurance policy to accomplish. If your primary concern is ensuring your funeral and burial costs are covered without burdening your loved ones, burial insurance may be sufficient. If you want to protect your family’s financial future, cover major expenses, and replace lost income, a traditional life insurance policy is the better choice. In some cases, individuals choose to have both types of policies—burial insurance for final expenses and traditional life insurance for broader financial protection.
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