Life Insurance: Is It Missing From Your Plan?

Life insurance may be a cornerstone of a sound financial plan, providing potential financial stability to a surviving spouse, children, or other family members in the event of your untimely death. Sadly, many Americans have no life insurance coverage whatsoever, and of those who do, many don’t have enough.¹

Appreciating the importance of having adequate life insurance is one step, while assessing your own unique needs is quite another. As a starting point, determine your net earnings after taxes as well as your routine living expenses. Then take into account any outstanding debt — such as a mortgage, education loans, or other loans — as well as future tuition bills and how much a surviving spouse might need to adequately fund a retirement nest egg.

Generally, you’ll want a benefit that will cover all of these expenses. Planning specialists sometimes say that it’s a good idea to buy a policy that would provide the equivalent of five to seven times your annual salary. That standardized approach may work for some people, but in reality, your decision may not be that simple.

Contact Us to learn more about Term Life vs. Whole Life Insurance and Potential Uses Throughout Life.

Source/Disclaimer: ¹Life insurance policies are subject to substantial fees and charges. Death benefit guarantees are subject to the claims-paying ability of the issuing life insurance company. Loans will reduce the policy’s death benefit and cash surrender value and have tax consequences if the policy lapses. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value | Not Guaranteed by Any Government Agency | Not a Bank/Credit Union Deposit.

Tracking No: 1-771396

Life changes quickly; that’s why it’s important to periodically evaluate your financial and life insurance needs. When was the last time you looked at your life insurance policies? How long ago were they purchased? Have there been any changes in your life or financial plans that might affect the amount of insurance coverage you desire? An insurance review can help you make sure your policies fit your current goals and financial plans. Your family’s financial future is too important to leave to chance.

Is it Time for an Insurance Review? Here’s a List of Things to Look For:

Changes in Beneficiaries

• Recent marriage or divorce?
• New child or dependent? o
• Children grown and out of the house?
• Death of spouse or dependent?

New Debt

• Purchased a home?
• Started or own a business?
• Need to fund a higher education

Changes in Your Financial Responsibilities

• Change in employment status or salary?
• Need to plan for retirement?
• Need to support anyone with special needs or an elderly family member?
• Received an inheritance?

If you answered “yes” to any of these questions, Contact Us about an insurance review today.

Disclaimer:  To the extent you are receiving investment advice from a separately registered independent investment advisor,
please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value | Not Guaranteed by Any
Government Agency | Not a Bank/Credit Union Deposit

Tracking #1-683005

Thinking about the need and the costs of long-term care is enough to make anyone uncomfortable. But while it’s a difficult subject to talk about, it’s also a topic that often generates lots of questions and misunderstanding.

Consider this: The median cost of a semi-private room in a nursing home now exceeds $85,000 per year, with wide-ranging variations from state to state.¹

Who Pays?

For the most part, those who need long-term care are left to foot the bill on their own. Neither Medicare, nor Medicare supplemental coverage (“Medigap”), nor standard health insurance policies cover long-term care. That’s why long-term care insurance may be so important. Since premium costs are based on your age and health at the time of purchase, the younger and healthier you are when you purchase a policy, the lower the premium you’re apt to pay during the life of the plan.

As you evaluate long-term care insurance, consider the following variables:

• Coverage Parameters. Policies will differ in the types of services they support, making the choice of a policy that best meets your particular needs so important.
• Benefits Payout. How much does the policy pay per day for care in a particular setting? How does the policy pay out (e.g., a fixed daily amount, as reimbursement for the cost of care up to a daily maximum)? Does the policy have a maximum lifetime limit? Are there adjustments for inflation?
• Eligibility. Does the policy use certain triggers to determine benefits eligibility, such as the formal diagnosis of an illness or disability? What is the maximum issue age for the policy?
• Women May Need More. Longer life spans for women may signal the need for additional coverage.

Finally, keep in mind that most long-term care policies sold today are federally tax qualified, which means premiums paid and out-of-pocket expenses are typically deductible. Also, long-term care benefits received are, in general, not taxed as income up to certain limits. Consider meeting with our team to discuss your particular situation. Contact Us today!

Source/Disclaimer:
¹Source: Genworth Financial. Genworth 2017 Cost of Care Survey, Novemebr 2017..  This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Tracking No: 1-776292