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Ed Meek
CEO/Investment Advisor

Edge Portfolio Management

City:Winfield

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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Insurance Decisions Among Affluent Investors

Only 26 percent of wealthy investors own long-term care insurance, but many believe their portfolios will pay for their needs when the time comes.

| BY Kent McDill

Despite the apparent wisdom shown by owning life insurance, as well as the knowledge that it will eventually come to use, less than two-thirds of all affluent investors own life insurance policies. The numbers for long-term care insurance are even lower.

Spectrem’s latest research study – Asset Allocation, Portfolios and Primary Providers – shows the ownership levels of insurance policies among investors of different wealth levels, age and advisor-dependency. Age is an obvious consideration when it comes to both life insurance and long-term care insurance ownership, as the study indicates.

The Spectrem study examines affluent investors in three wealth categories: Mass Affluent (with a net worth between $100,000 and $1 million), Millionaire (with a net worth between $1 million and $5 million) and Ultra High Net Worth (with a net worth between $5 million and $25 million).

Surprisingly, the wealthier segments are less likely to own life insurance. Among Mass Affluent investors, 61 percent own life insurance policies, while only 59 percent of Millionaires own life insurance, and only 56 percent of UHNW investors have the policies that ultimately pay off.

Only 43 percent of Mass Affluent investors have a life insurance policy paid for by their employer, although that number jumps to 69 percent of Mass Affluent investors under the age of 36.

Of the Mass Affluent who own life insurance, 40 percent have policies that pay less than $100,000 and 24 percent have policies that pay less than $250,000.

Long-term care insurance is a policy that helps loved ones care for their elders when they become unable to care for themselves. Such policies are expensive, and the ownership of long-term care insurance is spotty among affluent investors.

Mas Affluent investors tend to be younger than wealthier investors, which may be why only 22 percent of Mass Affluent investors already own long-term care insurance, although 35 percent consider themselves “somewhat likely’’ to purchase such insurance in the future. Thirty percent of Millionaire investors have long-term care insurance (with 33 percent planning to purchase) and only 26 percent of UHNW investors owning long-term care products (and only 21 percent somewhat likely to do so in the future). UHNW investors report that they have other ways to pay for long-term care and do not require the insurance coverage.

 



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.