Life Insurance & Hybrids" for Long-Term Care
Life insurance can serve a very important role in one's retirement plan. Today's insurance policies are very innovative and provide more solutions for pre-Retirees. The living benefits of life insurance offer so much flexibility in the benefits, beyond just the death benefit of a policy.
Even if you’re retiring in 5+ years, life insurance can still play a critical role in your financial strategy:
Life Insurance for Medical or Long-Term Care: a LTC rider provides payments for LTC needs, without the cost of a stand-alone policy. Plus if you don't need it or only use part of your LTC benefits, the remaining policy value will be passed on to your beneficiaries or heirs.
Income Replacement for Dependents: If your spouse, children, or other dependents rely on your income, life insurance ensures they are financially supported if you pass away unexpectedly.
Debt or Mortgage Protection: If you have significant debt (e.g., a mortgage), life insurance can provide funds to pay off these obligations, sparing your loved ones from financial strain.
Estate Liquidity and Taxes: For individuals with sizable estates, life insurance can help cover estate taxes or other final expenses, preserving other assets for beneficiaries.
Supplementing Retirement Savings: Certain types of life insurance, like permanent policies with cash value, can provide supplemental funds for retirement or emergencies.