Do you think long-term insurance planning is important?
If you don’t plan ahead, you could find yourself paying out thousands of pounds in premiums without ever receiving a penny back.
What is Long-Term Care Insurance?
Long Term Insurance is an investment strategy designed to protect against future financial risks. LTI provides protection against life events such as illness, disability, unemployment, and retirement.
It is a type of health insurance designed to pay for nursing home care, assisted living facilities, adult day care programs, personal care attendants, and other services related to aging.
LTCI is a very important part of retirement planning because it can provide income for those who need it later in life.
How Does It Work?
LTI works by taking money from your bank account or investments and investing them in a portfolio that will generate interest over time. The policyholder receives regular payments based on their age and how much they have invested.
When you die, the proceeds go directly to your beneficiaries. If you choose not to leave any assets behind, the policy pays off the remaining balance at maturity.
Why Should You Consider Buying An LTI Policy?
There are many reasons why you should buy an LTI policy:
1. Protects Against Uncertainty – When you purchase an LTI policy, you are essentially buying a bet on yourself. This means that if something happens to you, your family will be financially protected.
2. Provides Income During Retirement – Once you reach retirement age, you may no longer receive Social Security benefits. In addition, it’s possible that your employer won’t offer a pension anymore.
3. Helps Reduce Estate Taxes – Because LTI policies are considered “life insurance,” they can be included in your estate plan. By doing so, you reduce the amount of taxes paid upon death.
4. Allows Your Family To Pay For Nursing Home Care – LTI policies allow your loved ones to continue to live comfortably while providing for your needs.
5. Offers Protection From Financial Ruin – If you suffer a major medical event like a heart attack, stroke, cancer, etc ., you’ll likely require extensive medical treatment. If you don’t have adequate resources to cover these costs, you could end up bankrupt.
6. Provides Peace Of Mind – While most people worry about dying, few realize that they might also become disabled. A good LTI policy will help alleviate this fear.
7. Gives You Options – If you decide to sell your business, you can use the proceeds to fund your retirement.
8. Can Be Used As A Tax Deduction – If you have an LTI policy with a company that offers tax-deferred status, you can deduct the premium payments from your taxable income.
9. Is Easy To Understand – Unlike traditional life insurance which requires a lot of paperwork, purchasing an LTI policy is easy. All you need is a simple application form and a check.
10. Doesn’t Require Medical Exam – Unlike traditional life insurance, LTI doesn’t require a physical exam. This makes it easier to obtain coverage.
11. Has Low Premiums – Most companies offering LTI policies charge premiums between 2% and 4%.
12. No Waiting Period – There is no waiting period associated with LTI policies.
13. Flexible Payment Option – With LTI, you can make monthly payments instead of lump-sum payments.
14. No Surrender Value – If you cancel your policy, you lose all of the value you’ve put into it.
15. No Age Limit – You can keep your policy as long as you wish.
Who Is Qualified For An LTI Policy?
You must meet certain requirements in order to qualify for an LTI policy. Here are just a few of them:
1. Must Be At Least 21 Years Old
2. Must Have Been Working For The Company For 3 Years Or More
3. Must Not Have Had Any Serious Health Issues
4. Must Not Have Taken Out Life Insurance Within The Last 12 Months
5. Must Not Have Made Any Large Purchases Within The Past 6 Months
6. Must Not Be Deceased
7. Must Not Have Owned Another Business
An LTI policy provides financial protection during retirement. It allows you to provide for your family without worrying about how much money you will need later in life.
Retirement planning is important, but it doesn’t have to be stressful. Planning ahead for your future is essential, but it doesn‘t have to be stressful! Our experienced team of professionals at Healthbridge Insurance Solutions can help you plan for the future by reviewing your current situation and helping you determine what options are available to you. We‘ll work with you and/or your financial advisor to identify the best solutions for your particular situation. Don’t let stress get in the way of your retirement plans! Let Healthbridge help you make sure that you have enough money to live comfortably during your golden years. Contact us today to learn more about our services!