NEWS & RESOURCES

Provided By: Adelae Winters, Financial Advisor

Adelae Winters, Financial Advisor

As you navigate the complexities of planning for the future, insurance products have become increasingly sophisticated to address a variety of needs. One solution is for individuals who are aging and looking to secure or change their life insurance coverage is to consider the benefits of a hybrid plan that includes long-term care benefits.

Combining the benefits of both life insurance and long-term care, a hybrid policy can offer individuals and families a comprehensive and flexible approach to protecting your financial well-being. It’s important to remember, however, that not all hybrid policies provide the same level of coverage or financial security, so it’s critical to consult a financial advisor or insurance agent who can evaluate your insurance needs, conduct research and compare policies before making a purchase.

What does a hybrid policy offer?

• Long-term care coverage: If you need long-term care, you can use part of the policy’s death benefit to help pay for medical and non-medical expenses related to care, including home assistance care or assisted living.
• Life insurance benefits for loved ones: Unlike traditional long-term care policies, if you never use the policy’s long-term care benefits, your loved ones will receive the death benefit when you pass away. If you do use the policy’s long-term care benefits, loved ones can get a portion of the death benefit.

What Happens If I Don’t Need Care Before I Pass?

If long-term care benefits are not used, the hybrid life insurance policy still provides a death benefit to beneficiaries. This ensures that loved ones are financially protected, allowing them to cover final expenses, outstanding debts or simply maintain their standard of living after the policyholder’s passing. The death benefit is a tax-free lump sum, providing additional peace of mind to policyholders and their families.

Additional Benefits

• The policy can work as an estate planning tool. Hybrid life insurance policies that also offer long-term care coverage can serve as an effective tool for estate planning. These policies not only provide a partial or full death benefit to your loved ones, but the death benefit is also usually exempt from income taxation. Moreover, long-term care coverage can help mitigate the financial impact of care costs, which may otherwise diminish assets earmarked for your heirs.
• Rest easy at night knowing you won’t need to dip into your retirement savings. With long-term care coverage included, you can rest easy knowing that it’s there if you need it. This way, you won’t have to worry about draining your retirement savings to cover care costs for yourself or a loved one.
• Say goodbye to paying premiums forever. With hybrid life insurance policies, you have flexibility when it comes to paying premiums. You can choose to pay for the policy in full upfront or opt for a multi-pay plan. With the latter, your premiums can be spread over several years.

Insurance planning, specifically long-term care planning, might seem complicated ­– but it’s ultimately about protecting you and those you love through properly managing your risk. Each insurance policy and type have advantages and disadvantages, so it is essential to speak to a financial advisor who can review your complete financial picture and can make recommendations that fit your unique circumstances.

Our team is trained and licensed to review existing policies, identify gaps in coverage, secure unbiased quotes from multiple insurance carriers, and make recommendations on policies that best fit your needs. Cordell, Neher & Company, PLLC takes an integrated approach to financial planning by blending tax professionals and financial advisors to give you a complete financial team in your corner. For more information, visit our website at cnccpa.com or give us a call at (509) 663-1661, and we’ll begin helping you, your family or your business today.

Investment strategy may not be suitable for all investors, please consult with a financial professional.