As much as we try to prepare for them, tragic events like death, disability or critical illness sometimes strike. When faced with such a situation, insurance can help protect policy holders and their families from undue hardship. For this reason, a variety of insurance coverage is essential to any comprehensive financial plan.
Insurance planning is best when tailored to fit its owner’s personal situation: whether designed for a single person or family; professional or seasonal employees; executive or small business owner, everyone can benefit from an appropriately customized plan.
Life insurance is more than planning for the security of one’s loved ones: it can be a cornerstone in any multi-generational financial strategy.
Life insurance can provide financial resources in a number of concrete ways, from immediate expenses such as hospital bills to income replacement and assistance in settling outstanding debts. It can also help with estate planning and charitable contributions. Furthermore, some forms of life insurance enjoy tax advantages, and so can be an ideal addition to any financial plan. In the event of death, life insurance offers surviving family members increased financial resources. As a tax-free lump sum payment, the so-called ‘death benefit’ can pay for final expenses and debts, as well as provide income for the deceased’s dependents.
There are two main ways to organize life insurance policies: term insurance and permanent insurance.
Term Insurance involves paying a premium to secure a death benefit payment to beneficiaries. It provides protection for a specified period and is usually renewable. There are several different kinds of term life insurance, including Level Term, Annual Renewable Term, Decreasing Term, and Return of Premium life insurance.
Permanent Insurance involves comparatively high premiums at first, but costs may drop significantly over the long term. Furthermore, some permanent insurance plans include a cash value, and associated tax-advantaged borrowing privileges. There are several kinds of permanent life insurance, including Variable Life, Whole Life, and Universal Life coverage.
The advantages of life insurance include:
- An instant estate for loved ones at a time when funds are most needed
- Death benefits are generally non-taxable
- Life insurance plans with a cash value component offer tax-advantaged borrowing opportunities
- Some plans allow policy-holders to invest the cash value or death benefit in sub-accounts containing stocks, bonds, or other investments
- Gain tax advantages and help support a charitable interest through a charitable life insurance program
I can help you select coverage from a variety of life insurance options to meet the needs identified in your financial plan.
Life Insurance policies are subject to substantial fees and charges. Policy values will fluctuate and are subject to market risk and to possible loss of principal. Guarantees are based on the claims paying ability of the issuer.
Life insurance can play a vital role in your financial plan—contact us today to find out how.
Long Term Care Insurance
Help guard against the impacts of an unexpected event through long-term care insurance.
Unfortunately, present forms of federal and state-sponsored health care programs do not comprehensively cover long-term care. Medicare generally offers temporary assistance, while Medicaid, which varies by state, may require out of pocket expenses and very low levels of asset value before public assistance becomes available.
You spend a lifetime working toward your goals, so it’s important to prepare for an expense that could impact the financial health of your future long-term care costs. By planning ahead, you’ll help protect your retirement and what’s important in your life.
Hybrid life/long-term care insurance is a life insurance policy with an optional qualified long-term care insurance rider. The primary advantage of this life insurance combination product is that you’ll get benefits for your premiums whether you ever need long-term care, as long as all planned premiums are paid.
A comprehensive financial plan can protect income through long-term care insurance.
Contact me today to find out which policies are best for your unique circumstances.
*Guarantees are based on the claims paying ability of the issuing company.