Life Insurance and Long Term Care
Nearly 70% of Americans 65 and older need long term care at some point, according to the U.S. Department of Health and Human Services. And according to the most recent statistics, 10 out of 10 Americans will die at some point in their lives.
Humor aside, life insurance and long term care insurance are financial services that are extremely useful, especially to someone who has family depending on them or someone who is getting on in age and starting to consider what might happen to their family as the inevitable approaches.
Something that is gaining traction in the financial services world is “hybrid insurance.” It’s life insurance with a long-term care rider that allows you to use that money for healthcare if you need it.
Considering that long term care insurance policies are some of the more complicated ones that you may encounter, this hybrid product may be just the ticket to simplify the process.
After all, a life insurance policy stands apart from others, in that the policyholder has a certain need for the benefits at some point in time.
Your needs will depend on a number of factors, including the size of your family, the nature of your financial obligations, your career stage, and your goals. For example, when you're young, you may not have a great need for life insurance. However, as you take on more responsibilities and your family grows, your need for life insurance increases.
“Whatever you don’t use gets passed along to your family after you die. You can pay for it either all at once or over the course of 10 years or so,” says Executive Vice President of Investor Services, Daniel Lerner of David Lerner Associates.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC