Life and Long Term Care Insurance
The main purpose of life insurance is to provide financial security for your family. Life insurance helps ensure that, when you die your family will have the financial resources it needs to provide for your spouse, children, an elderly parent or some other dependent. Life insurance also may be used to meet a variety of long-term financial planning goals. It can help provide educational funds for your children or funds for your own retirement.
So How Much is Enough?
There are no hard and fast rules for determining how much life insurance is enough, because no two families have exactly the same needs. The bottom line is, if you provide financial support for people who depend on you, you probably need life insurance.
The Importance of Life Insurance Policy Review
As part of your life insurance review, some additional components can be critical to your plan and to keeping pace with changing lives.
- Beneficiary designations—those who will receive proceeds-- may need updating.
- Health may have improved since the policy was purchased, creating an opportunity for lower cost insurance.
- Premiums on term insurance can increase upon renewal, prompting a move to consider a permanent, fixed premium policy.
- Loans or withdrawals may affect your policy performance
Take the time today, to help ensure your family’s financial security. Talk to your CFS* Financial Advisor and get help in finding the right products to fit your specific needs and budget.
Long-Term Care Insurance
Long-Term Care Insurance (LTCI) is insurance that will pay for your care in a nursing home, assisted living center, or in your own home in the event that extended health care is needed in your lifetime.
With the national average cost for nursing home care running about $81,030 a year, your assets can be depleted extremely quickly if you require this kind of care. LTCI can help protect you and your loved ones from dealing with this stress. It will help ensure that you get the care you need in the way you prefer while keeping assets available for a surviving spouse who may need the income, or to pass down to the next generation.
Many people believe that Medicare or their health insurance will pay for their Long Term Care costs, but typically there is limited or no coverage for Long-Term Care under these policies. Medicaid will only cover you for Long-Term Care once you are impoverished and have spent most or all of your assets on your care. Medicaid also requires, in most states, that you receive care in a nursing home if you rely on them for payment. If you have LTCI, you get to decide where you would like to receive your care.
Long-Term Care as Part of Your Financial Strategy
Purchasing Long-Term Care Insurance can be expensive and confusing. We focus on helping you understand this coverage so you buy only the features you want and need. This may help those on a budget be able to afford coverage they might not think they can obtain.
To make an appointment or just ask a question, call Financial & Investment Services at 800.852.5886 or email us today!
Source for Source for life insurance: www.lifehappens.org
Source for average nursing home care costs: https://www.metlife.com/assets/cao/mmi/publications/studies/2012/studies/mmi-2012-market-survey-long-term-care-costs.pdf
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. UMassFive College Federal Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.