Colorado Life and Long Term Care Together
Long term care continues to be a very important issue for all Americans. Life insurance is also part of financial planning for both individuals and businesses in Colorado. 60% of Americans will at some point become impaired enough to need long term care of some kind. Annual costs of care can range from a high of $200,000 to a low of $75,000, depending on services required. 50% of bankruptcies are due to medical expenses.
There is a product that combines both life insurance and long term care under one insurance policy. Chronic illness riders and long-term care riders offer added benefits. This is done on a tax-advantaged basis to the policyholder. The product is called life insurance with “accelerated benefit riders” (ABR’S).
The terms of the life insurance will allow the insured to apply for a settlement to have a portion of the life insurance paid in advance. There is a documentation process but the payments are still considered nontaxable. There are dozens of illnesses that qualify.
Call Gail at Mountain Insurance: Longmont today for more information. 303-808-9351, x5