Life insurance is one of the most essential purchases for your family’s future. It provides peace of mind in knowing that they will be cared for financially if something happens to you.
At Long Point, we understand the importance of life insurance and work with our clients to incorporate it into their overall financial plans. We advise on the best policies for each individual and help them prepare to make the right decision for their family. Contact us today to learn more about life insurance and how it can benefit you and your loved ones.
Healthcare costs can be a significant expense in retirement, but there are steps you can take now to help prepare for them. In this video, we discuss the importance of insurance and other planning measures to help you cover the high cost of healthcare in retirement. Planning is critical to ensuring you have the resources you need when you need them most. For more information on retirement planning, visit our website or speak to one of our advisors.
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A Quick Look at Life Insurance Needs
Have you ever wondered how much life insurance is “enough”? One general rule of thumb says that you should buy an amount equal to five to seven times your annual income. Sure, it may be a reasonable guideline, but this method does not relate life insurance needs to your personal financial goals. A better method may be to implement a “needs analysis.” This process helps you determine the future short-term and long-term financial needs of you and your family. Once your needs have been identified, you can design a plan to help assure that money will be available to meet those objectives.
Keep Your Homeowners Coverage Up To Date
When you sign up for a homeowners or condominium owners’ insurance policy, you take the first step in protecting what may be one of your most significant assets. It is essential to know the appropriate amount of coverage needed and the extent of the coverage provided by your insurance contract.
The homeowner’s policy is a package that covers your dwelling, other structures on the premises, unscheduled personal property on and away from the premises, loss of use, personal liability coverage, and the medical coverage of others.
Nearly all insurance companies require that your policy be issued for at least 80% of the replacement cost of your home. Failure to maintain proper coverage may result in sharing in a partial loss as a penalty.
What to Do When Your Term Life Insurance Is Expiring
In an ideal world, you buy life insurance when your kids are young, or you’ve purchased your first home, and you need the coverage only for about 20 years. By the time your policy nears the end of its term, your kids are on their own, your house is mostly paid off, and you’ve accumulated enough money in retirement savings for your spouse to pay the bills if anything happened to you.
Long-term care insurance can help protect you and your loved ones from the high costs of long-term care. LTC insurance helps cover the expenses of nursing homes, assisted living facilities, adult daycare, and home health care. Most policies also offer a death benefit, which pays out a set amount of money to your beneficiaries if you die while receiving LTC benefits.
To find the right policy for you, it is essential to understand the different types of coverage available. Some policies pay a fixed dollar amount each day that you receive benefits, while others pay a percentage of the total cost of care. Policies may also have an age cutoff, meaning you will no longer be eligible for coverage once you reach a certain age. Be sure to read the fine print and ask lots of questions so that you can make an informed decision about Long-term Care Insurance.