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Long-Term Care Insurance: Who Needs It?

Tuesday, November 30th, 2010

We will all need long term care insurance at some point in our lives. The basic principle behind this financial term is ‘plan for your future early’. And while you are thinking of the future, consider inflation and the rise of costs and expenses. It only makes sense to secure your health starting today.

We came across this article which clears all confusion on who needs a Long-Term Care Insurance.

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Long Term Care Insurance: 6 Ways to Buy It Right

Monday, November 29th, 2010

Analyze what is most necessary and don’t go overboard. A long-term care insurance policy which covers both institutional and community-based care is enough. Doing so helps you stick with your resources and prevents you from spending too much. You need to be certain the insurance company is reputable and that both the company and the agent are properly licensed to sell long term care insurance.

We came across this article which gives a clear view that you need to keep in mind when buying long term care insurance.

It’s not only the insurance companies and investment markets that are messing with the future of long-term care. They’re doing it in the name of consumer protection. But that adds to the need for even higher premiums later, Some states don’t permit short-term policies or other money-saving designs that could reach a wider market.

Nevertheless, this industry isn’t going away. People with assets should get their heads out of the sand and protect themselves against these old-age costs. Here are six rules for buying LTCI today:

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Split Dollar Life Insurance – Benefits at Half the Cost

Tuesday, May 4th, 2010

Insurance. A reassuring word. Your fallback and your contingency plan in case of unforeseen risks. But of course you know that this assurance comes at a premium…quite literally.

The greater you want, your amount of compensation to be, the larger the premium amount. But if one can’t afford large sums to be paid out as insurance premiums, it doesn’t mean that they have to settle for a smaller insurance amount.

The solution here is to opt for a split dollar life insurance. In this kind of an insurance policy, both the premiums and proceeds of the policy are split between multiple people.

This can mean an employer and an employee, or even a parent and a child. This is a clever planning tool, especially for younger people just starting out their lives, since it enables you to obtain an insurance policy at a subsidized cost, since the policy premium can be divided with your employer or family member. It is a mutually beneficial agreement, wherein all benefits can also be shared.

There are two types of split dollar polices available:

* Endorsement: This policy is owned by the employer, and the insured person’s chooses his beneficiaries and terms of death benefits.
* Collateral: This policy is owned by the employee and the employer’s contributions towards premiums are considered as loan, to be paid off with the compensation from the policy proceeds.

What needs to be kept in mind is that the premium paid is not tax deductable for either party involved. Whoever, with the help of a good financial advisor, all concerned can reap full benefits of such a policy.