Life Insurance / Long Term Care

Life insurance is a crucial step in planning for your future and the future of your loved ones. It can fulfill promises made to your family if you are no longer around by providing a death benefit to your beneficiaries in return for premiums paid to the insurance company.

Life insurance can also provide benefits while you are living.

Advantages of the Death Benefit

  • Provides income tax-free money to your named beneficiary(s) that can be used to pay funeral expenses, debt, tuition, estate taxes or virtually any financial need you leave behind.
  • Can provide business security by enabling partners to buy out the interests of a deceased partner and prevent a forced liquidation.

Advantages of Living Benefits

  • The cash value growth of a permanent life insurance policy is tax-deferred, which means you do not pay taxes on the growth of the cash value unless the money is withdrawn.
  • Loans or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses, such as college tuition or the down payment on a home.

There are several different types of life insurance available. The most common include:

Term Life Insurance

Term provides life insurance protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It’s generally less expensive than permanent life insurance, and is available in varying term periods with fixed premiums from a one- (annual renewable term) to 20-year period (level term). Furthermore, term insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.

Whole Life Insurance

Whole life is a form of permanent life insurance that remains in force during the insured person’s lifetime, provided premiums are paid as specified in the policy. Whole life insurance can build cash value.

Universal Life Insurance

Universal life is a form of permanent life insurance characterized by its flexible premiums, flexible face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.

Long-term Care Insurance

We are all living longer today.  Living longer, however, carries concerns for you about how you will pay for your care when you can no longer care for yourself.  Your chances of living longer presents concerns for you as to whether your family and loved ones will be burdened by your care needs.  Government studies show you have a 70% chance of needing care at some point in your life.  And contrary to what you might believe, private health insurance and Medicare will not cover your costs.

Currently, the 2016 nationwide average cost for a private room in a nursing facility is $240.00 day or $87,600 per year.  The average costs increase with inflation by approximately 4% per year.

Securing your future with planning will allow you to protect your retirement assets, enable you to receive your care with dignity in the setting of your choice, and most importantly will guarantee you will not burden your loved ones with caregiving.

The need for long-term care will most likely become a need in your life.  Talk to us at IBRG to go over the MANY OPTIONS.  Coverage may be needed now to avoid a catastrophic event.

Below is a chart that shows the most common types of insurance and the very limited long-term care coverage they provide.

Public Private
Long-term care Service Medicare Medigap Insurance Private Health Insurance
Overview Limited coverage for nursing home care following a hospital stay and home health if you require a nurse or other skilled provider Insurance purchased to cover Medicare cost sharing Varies, but generally only covers services for a short time following a hospital stay, surgery or while recovering from an injury
Nursing home care Pays in full for days 1–20 if you are in a Skilled Nursing Facility following a recent 3-day hospital stayIf your need for skilled care continues, may pay for the difference between the total daily cost and your copayment of $137.50 per day for days 21-100. After day 100 does not pay May cover the $137.50 per day copayment if your nursing home stay meets all other Medicare requirements Varies, but limited
Assisted living facility (and similar facility options) Does not pay Does not pay Does not pay
Continuing Care retirement community Does not pay Does not pay Does not pay
Adult day services Not covered Not covered Not covered
Home health and personal care Limited to reasonable, necessary part-time or intermittent skilled nursing care and home health aide services, some therapies if a doctor orders them, and a Medicare-certified home health agency provides them.Does not pay for on-going personal care or only help with Activities of Daily Living (also called “custodial care”)

(reference longtermcare.gov)

Having the right plan is critical call IBRG today – 224-333-0550

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