Protecting Your Principle
Life insurance has typically been a way to protect a family in the event of unforeseen death. There are a number of different life insurance options, including term, whole life, universal life, variable universal life insurance, and guaranteed premium universal life. These various types are chosen by individuals and families based on their situation and goals. At Rhodes & Associates, we strive to find the most up-to-date, efficient, and cost effective programs for clients based on their unique needs.
Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared?
When properly designed, certain life insurance policies (or a combination of policies) can provide you with retirement income streams that never go down and last for your entire lifetime.* In addition to loss protection, the insured can leave behind a tax-free legacy to their beneficiaries.
While proceeds from life insurance policies are included in the estate for estate tax purposes, there is a way to avoid this by establishing an Irrevocable Life Insurance Trust (ILIT). By setting up an ILIT, you transfer ownership of your policies to the trust or trustee, which can be your spouse or children. This may provide valuable tax benefits that serve to pass along more of your wealth to your surviving spouse or heirs.
Long-Term Care Riders
Historically, clients have had a hard time prioritizing their needs including life insurance for their family, long-term care insurance for themselves, and concerns regarding terminal or end of life care costs. Oftentimes, clients are hesitant to invest in long-term care insurance because they may never use it. However, the truth is, there is a 1 in 2 chance you’ll need long-term care.** For women, there is an even higher chance that they’ll need long-term care within their lifetime.
Today, life insurance has become a vehicle to cover many risks and now comes with optional riders to cover long-term care and critical and terminal illness. Hence, one policy can cover many situations in the future.
Long-term care is costly and can significantly deplete assets. Often, it can be less expensive to choose a life insurance policy with a long-term care rider, which allows you to reduce the face value of your policy to use for long-term care expenses. Upon your death, the unused portion immediately transfer to your beneficiary. And if you don’t end up needing long-term care, you still have the benefits of your life insurance policy.
Another rider many may not be aware of is the no-lapse guarantee rider benefit for life insurance policies. This rider offers permanent life insurance protection, meaning if the cash value of your policy drops to zero, the policy still remains in force for the guaranteed period without increasing your premium.
Insurance riders may help you minimize the impact of unanticipated care expenses and preserve your wealth. Clients can leave behind a legacy for their family and may feel confident in their financial futures.
Learn more about the many different riders, including Waiver of Premium and Accidental Death and Dismemberment, available and how life insurance can help you and your family by contacting Rhodes & Associates today. We offer free online policy reviews.
*Income guarantees are contingent on the claims paying ability of the issuing insurance company. Some products require additional fees for this protection.
**LTC Tree, "The Chances of Needing Long-Term Care," 09/19/12