Life Insurance is Multifaceted
Life insurance is often thought of as simple financial protection for your loved ones in the event of your death. It is that, but it isn’t just that. Life Insurance comes in all shapes and sizes.
Whole life insurance provides coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. These policies are also known as “permanent” or “traditional” life insurance.
Indexed Universal Life
Indexed Universal Life insurance is a type of permanent life insurance, which means it has a cash value component in addition to a death benefit. The money in your cash value account can earn interest based on a stock market index chosen by your insurer, such as the S&P 500 or the Nasdaq Composite.
Convertible Term Life
A convertible term life insurance policy can be converted by the owner into a permanent life insurance policy during a specific period of time, without requiring an exam or proving the insured is healthy.
At My Legacy Group, we put a heavy emphasis on tax planning. We bring the goal of tax-efficiency into every plan and strategy we create. One way we do that is by taking advantage of life insurance contract law. This means the way the IRS traits the cash value that builds up over time inside your life insurance contract. We use life insurance in the same way we would use a Roth IRA, however, the benefit is we are not limited or restricted by the IRS restrictions that Roth IRAs have.
Funding Long-Term Care Insurance
At My Legacy Group, we believe that preparing for Long-Term Care is one of the smartest things you can do. The trouble is that LTC is expensive. There are essentially four ways you can pay for LTC for a loved one. We work with our clients on preparing for “affording” LTC Insurance so they can avoid self-funding or asking family to pay for LTC.
Four Ways to Pay for Long-Term Care
b. Ask Family
c. Long-Term Care Insurance-Long-term care (LTC) insurance is coverage that provides nursing-home care, home-health care, and personal or adult daycare for individuals age 65 or older or with a chronic or disabling condition that need constant supervision. LTC insurance offers more flexibility and options than many public assistance programs, such as Medicaid
d. Hybrid Life Insurance-A hybrid long-term care policy combines the benefits of life insurance, or an annuity, with long-term care benefits. You can buy a hybrid policy by paying a one-time lump sum premium or by paying over a number of years.