Asset preservation is a critical part of a sound financial plan. Not only is it important to have the right coverage, but also enough. Preserve the assets you’ve spent a lifetime building.
If you’re choosing a life insurance policy for the first time, it’s important to decide which type of life insurance policy is appropriate for your specific situation. Life insurance can help your loved ones pay for living expenses after you’re gone. These can range anywhere from the mortgage, car payments, gas, groceries or utilities.
Generally, life insurance can be broken down into two categories – term and permanent. Term life insurance is a more popular type of policy of life insurance as it provides benefits that are attractive to people of most ages and situations. Coverage is provided for a specific length of time which you choose. Policies are generally between 10 and 30 years in length and provide both a fixed premium (the amount you’ll pay) as well as a fixed payout (the amount your family receives).
Permanent life insurance is designed to give you life-long coverage. Unlike term life insurance, permanent life insurance plans do not expire. A key feature of many permanent life policies is a savings portion known as cash value. Cash value accumulates over time as you make regular payments toward your policy (these payments are known as premiums). You can typically borrow against your policy’s cash value, which accumulates on a tax-deferred basis.
While the policy allows for cash in the short-term, such as loans and withdrawals, there are costs and risks associated with those transactions. Policy loans and/or withdrawals also reduce the cash surrender value and the policy death benefit. Taking a policy loan could have adverse tax consequences if the policy terminates before the insured’s death. You should know that there may be little to no cash value available for loans and withdrawals in a policy’s early years.
With any life insurance purchase, it’s important to find coverage that fits your individual needs. Let us walk you through this vital step in creating a solid financial plan.
Long-term care Insurance
Most health insurance covers things like hospital stays, medical procedures, doctors’ office visits, and prescription drugs. However, there are certain things that your healthcare policy won’t cover – especially if you were to suffer a long-term illness or disability. Long-term services such as nursing home stays and in-home care is generally not covered, and even Medicare will only cover them under specific conditions.
Long-term care insurance pays for certain coverages that you could be left paying for out of pocket. Without it, you may have to cover these expenses by liquidating your retirement savings or even selling your home or other assets. When planning for retirement, long-term care insurance may make sense as a way to safeguard against the high potential costs of nursing homes, assisted living, and in-home health services.
Disability Income Insurance
Your most valuable asset is your ability to make a living. If you can’t work for an extended period because of an illness or injury, disability insurance will pay a portion of your income. There are two main types of disability insurance — short-term and long-term coverage. Both will replace a portion of your monthly base salary up to a cap, during disability. Some long-term policies will even pay for additional services, such as training to return to the workforce.
We help find affordable insurance options to help meet your families needs.