Life Insurance and Long Term Care-A Match Made in Heaven
Permanent life insurance and long term care are a match made in heaven. When you identify a desire to have permanent life insurance, you are indicating that you want to protect your family’s financial future with a death benefit. The reasons for this could be for income replacement, to cover a mortgage, kid’s college expenses or even to plan an estate.
Did you know that today there are many permanent life products that allow you to take your future long term care risk off the table at the same time? It’s as simple as adding a rider to the policy. Typically, once the need for the life insurance has been identified, you will make a determination as to how much death benefit you want. If you’re thinking about solving for long term care at the same time, then that death benefit amount might change. For instance, if you are in your sixties, the need for a long term care situation could be more than twenty years away. My thinking is, why not plan for it now and take that risk off the table?
With most life insurance carriers, it’s as simple as setting the correct face amount for the death benefit to generate the amount of monthly long term care you’re going to need later in life. Usually the carriers are offering a 2% rider against that face to be a long term care benefit should you need to dip into the death benefit pool for a long term care situation.
So if you already have a permanent life policy and you’re thinking about addressing a future long term care scenario, you also have the ability to move the cash value over to the new policy that offers the long term care rider. Generally, if you are pre-planning for retirement, you are reviewing your life insurance at the same time. It’s a great time to investigate and consider looking into a policy that can give you long term care benefits at the same time. Combining life insurance and long term care insurance can be a seamless solution for your financial plans.
About the author: Mark Yurkovic has been in the life insurance business for over 12 years, and holds CLTC, LUTCF, and CES designations. He enjoys building remote control boats, and playing instruments including the piano, guitar, banjo, and mandolin. Mark would love to discuss life insurance options and work towards finding the best policy fit for your family. You can contact Mark at 1-800-651-1953 or MYurkovic@Pivot.com.