Insurance is something you pay for that you hope you never use. Even the best financial plan can be derailed if an unexpected event happens. Life insurance and long-term care insurance provide a financial safety net to families.
Life insurance proceeds are tax-free. The benefit may mean stability to a family who loses its primary bread winner or it may be become a lasting legacy for children and grandchildren in a well-formed estate plan.
Please keep in mind that the primary reason to purchase life insurance product is the death benefit. Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. Policy loans and withdrawals may create an adverse tax result in the event of a lapse or policy surrender, and will reduce both the cash value and death benefit.
The average cost of a nursing home in Arizona is $70,000 a year. Without long-term care insurance, a couple could drain most of their savings on care, leaving the healthy spouse with little resources.
There are various ways to provide life insurance and long-term care protection. The first step is a discussion to determine which method would best fit your situation, goals and budget.