LIFE INSURANCE AND LONG-TERM CARE INSURANCE

Insurance is often an essential estate planning tool for many families. Below, different types of insurance tools are discussed. If you have questions about whether insurance makes sense for you, contact our firm today for all of your life insurance and long-term care insurance needs.

Term Insurance: This type of insurance is cheaper to purchase, and is used for temporary needs. A great use of term insurance is for new families with young children. By using term insurance, you ensure that if a spouse dies at a young age, the family will be taken care of.

Whole Life Insurance: Whole Life Insurance does not expire, assuming you continue to pay premiums. Whole life insurance usually has cash value and a guaranteed death benefit. Life insurance passes tax free to your heirs and also avoids probate.

Universal Life Insurance: This is a popular type of whole life insurance policy, and can be used in many ways. Universal life can be a great investment, wealth transfer tool, cash accumulation tool, or death benefit tool. Universal life insurance proceeds go tax free and probate free to your heirs.

Long-Term Care Insurance: Traditional long-term care insurance provides a daily monetary benefit for your long-term care needs. However, there is no death benefit, so if you pay premiums and never need long-term care, your heirs do not get the money back.

Single-Premium Long-Term Care Insurance: A great example of this type of insurance is Lincoln’s MoneyGuard. You pay one lump sum premium (for example, $100,000) and in return, receive a guaranteed long-term care benefit. These types of products also include a minimal death benefit, unlike traditional long-term care.

Whole Life Insurance with Accelerated Death Benefits: This type of product combines a whole life policy (with cash value, death benefit) with long-term care coverage as well. If you need long-term care, your death benefit will go towards the cost of the care. If you never need long-term care, your heirs receive a tax free and probate free death benefit.

Our firm can help you with all of your life insurance and long-term care insurance needs. Contact us today for your consultation.