Life Insurance & Long-Term Care

LIFE INSURANCE & LONG-TERM CARE

Life Insurance

Protecting our family is something we often do without even thinking. But what if we told you that Life Insurance is an often overlooked, yet-fundamental component of a sound financial plan for you and your family.

According to Life Insurance Statistics and Facts, about 43% of the population don’t have a life insurance policy in any amount. This report released by the life insurance industry reveals the harrowing reality that most of us are not prepared for an unexpected life event like death, leaving our families unprepared and possibly in debt.

Here are some reasons why Life Insurance is so important:

• Peace of Mind: A term life insurance policy is an inexpensive way to give you and your family members peace of mind, knowing that they will be protected if something happens to you. You will no longer have to worry about their financial future and can rest easy knowing they will be able to continue their current lifestyle.

• Pay Off Debts: A life insurance policy can pay off any debts that you leave behind that would be a burden to your family. Debts such as a mortgage, credit cards, car loans and even your funeral expenses can have a dramatic impact on your family and their lifestyle.

• Funerals Are Pricey: Even a basic funeral can cost $7,000-$10,000. A small life insurance policy will make sure your final expenses are covered so your family doesn’t have one more worry at an already stressful time.

• Provide for Your Kids: A life insurance policy will ensure that your children can go to college, buy a home and even pay for their wedding if you die unexpectedly.

• Protect Your Business: Regardless of whether you are using a life insurance policy to insure a key employee, fund a buy/sell agreement or simply provide a tax-free cash infusion (borrowing against the cash value of a permanent policy), life insurance can be a major asset to your business.

• Supplement Your Retirement: Permanent life insurance policies accumulate a cash value over the life of the policy that can be borrowed against tax-free. These policies can be used to supplement your retirement if your other investments fall short. These policies often come with fairly high fees, so be sure to compare the costs to those of other investment options.

Cirigliano Agency offers a variety of life insurance options, including term life, whole life, universal life and variable universal life insurance. Protect the life you want, for those who matter most. A life insurance policy can help provide financial security for your loved ones.

WHAT ARE THE TYPES OF LIFE INSURANCE COVERAGE AVAILABLE TO YOU?

• Life Term Insurance provides life insurance protection for a specified period of time. Term life is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.

• Whole Life Insurance is a form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy.

• Universal Life Insurance is a form of permanent life insurance characterized by its flexible premiums, face amounts and unbundled pricing structure. The savings element, premiums and death benefit can be reviewed and altered as a policyholder’s circumstances change.

• Variable Universal Life Insurance is a type of permanent life insurance policy with features that include cash value, investment variety, flexible premiums and a flexible death benefit.

Long-Term Care

The high cost of long-term care may not be something you want to think about, but you probably should. According to the U.S. Department of Health and Human Services (HHS), nearly 70 percent of people turning age 65 can expect to use some form of long-term care in their lives.

With such care averaging $229 a day for a private room in a nursing home, according to the HHS, it can quickly deplete your savings if you're not prepared.

That's where Long-Term Care Insurance can help. Let's break it down so you can decide if it's the type of policy that's right for you, or for a member of your family.

WHAT TYPE OF CARE DOES LONG-TERM CARE INSURANCE COVER?

Long-term care insurance is designed to help pay for services that offer you two kinds of assistance:

• Custodial care: Support with personal everyday tasks, like bathing, eating or going to the bathroom

• Skilled care: Support from a medical professional, like a nurse or therapist

Most people picture these types of services taking place in a nursing home, but such care can also happen in an adult day care, an assisted living facility, or even at home, says the Insurance Information Institute.

HOW DOES LONG-TERM CARE INSURANCE WORK?

So, how can long-term care insurance step in to help fill the gap?

Daily, Lifetime Limits

Policies are typically designed to reimburse you for qualifying expenses, with daily and lifetime maximums, says the Insurance Information Institute.

Triggers

Policies typically have certain "triggers" that need to take place before they'll start providing coverage, says the III. One common trigger is experiencing cognitive impairment due to Alzheimer's or Parkinson's disease. Another might be inability to perform two or three everyday personal care tasks because of an illness.

Waiting Period

There's also typically a waiting period before an insurance company will begin paying benefits, the III says. If you recover from your illness before the waiting period ends, the policy likely won't pay for expenses you may have accumulated during the waiting period.

Duration of Coverage

The length of time that you can receive coverage depends on the specifics in your policy. You may have insurance that provides protection for two years of care, or even up to a lifetime. The cost of a policy is usually lower for shorter-term coverage, the Insurance Information Institute says.

The ultimate cost of your policy will depend on these and other factors, like your age at the time of purchase. But it's important to know that if you're already in poor health or currently receiving long-term care, you may not be able to qualify for a long-term care policy, according to the HHS.

That is yet another good reason to consider long-term care insurance (or otherwise address the financial risks of extended care expenses) long before you'll ever need it.

Call 631-758-7225