Long Term Life Insurance – Why Get It?
We think of our bodies as the most valuable thing that we possess. The time and knowledge we have put into them is what gives us our current life and everything in it. We trust that they'll keep us alive, but these days, it doesn't just mean living to see another day. We're now more likely to live longer than ever before — and to spend a lot longer in retirement, too!
But while many people are living for a long time with the right safeguards in place like good insurance coverage for long term life insurance, some people continue on without it. And that's kind of a waste.
It may be because we don't understand long term life insurance, or we're afraid of how it might affect our finances — or both. We get asked this question all the time: "Should I buy long term life insurance?"
The answer depends on what you want from your life insurance policy and who you are. Here's a quick summary of the most common reasons why you should consider having a long term policy added to your protection needs:
The first is to keep estate taxes lower. Nowadays, people are living to be well over a hundred years old — and they're not dying out. As more and more people find that they're living longer than ever before, more estates in the U.S. will need to pass through probate courts and have estate taxes paid on their assets.
When you buy long term life insurance, the policy is yours until you die — so your gains won't be subject to estate taxes at that point in time.
In fact, only the first $650,000 of your life insurance proceeds will be subject to federal estate tax if you die before age 90 (depending on marital status). This means that those who die at a later age will save more than $15 million when they pass on their wealth to their heirs.
We've seen this in practice — where someone has bought the policy and, because they're taking such good care of themselves, is still alive at age 100. Because of those federal estate taxes, this person's heirs are paying on only around $1 million dollars in assets — which is less than for a 70 year old with no life insurance!
Where do you get the money? Your life. Your health is critical when you make decisions about your future and need to ensure that your finances are protected if something goes wrong.
Making sure your finances are stable is important to do — and you can make sure they are by purchasing a long-term policy. Without life insurance, it's difficult to 100% secure your financial future, but with life insurance, you'll have the peace of mind that things will go as planned.
The second reason you might be thinking about long term life insurance is because you're worried about what will happen if you get sick and are no longer able to work. You can take out short term coverage that covers doctors' bills and medical expenses — but what happens if something more serious comes along? With long term coverage, your family will have the benefits all the way until your end.
If you're worried about your financial future, your protection needs could also include long term life insurance coverage. There's more to it than just having a healthy lifestyle — and you need to be sure that no unforeseen events in the future will hurt your finances.
Long term life insurance is an investment in your long-term plan. It's designed to help you protect against the possibility of a major claim on your finances. When something like this happens, it's nice to know that you'll still have something to fall back on if you end up needing it!
The idea of being able to take care of yourself when you're old is appealing — but not everybody can make this happen in their own lives. That's why you should consider protecting yourself with long term life insurance.
In the United States, roughly 37% of all adults believe that there's a good chance they will live into their 90's and 40% are confident they can make it to age 95.
That means by the time you reach 50, you can expect that more than one out of every two people you know will live into their 90s — and people who are in the same age range as you now have just a 1 in 20 chance of dying by age 55.
From your 30s to your 50s, chances are that if the average person lives through this period, they'll see at least 40 more years on Earth.
This is why it's even more important that you exercise caution around this time of your life. You will need health insurance in your 60s, 70s, 80s and beyond to help deal with the struggles of aging. Long term health care insurance can be crucial to the survival of you and your loved ones.
Even still, many people misunderstand what long term insurance is. Some people are afraid that these policies are too expensive — or that they exert too much control over their lives — when this isn't really the case.
Begin your research and get a quote from an independent agent today. But, let's take a closer look at long-term insurance. What is long term life insurance? How does it work? How much does it cost? The truth can help you understand what's most important for you to know before purchasing long term care insurance.
What is Long Term Life Insurance?
Long term life insurance is the kind of coverage that can provide financial support after a person has passed away. You're typically covering someone who is still alive, and needs the security of having money from their estate to cover bills such as medical costs and funeral expenses after their death.
Long term care insurance is a type of long term life insurance that covers some of the costs associated with making sure you're able to live long, productive lives. This provides the ultimate backup for your financial security as you age.
You can also opt for Alzheimer's, COPD, or dementia coverage if you want to protect your loved ones from a major health crisis or debilitating disease. These types of plans can provide much needed financial reimbursement for the long-term issues surrounding dementia and other sicknesses.
How Long Term Life Insurance Benefits Your Loved Ones
There are many benefits to having long term life insurance. Most importantly, these policies offer peace of mind knowing that you and your loved ones are covered should you ever pass from illness or accident.
In fact, there are many great reasons for purchasing this type of coverage, including:
Provides a source of income when you need it most. Long term life insurance can provide a lifeline for events such as the following: You pass away unexpectedly . This can provide support for any immediate bills that may come up in the wake of your death — and help ensure that your family won't be out on their own financially. You're diagnosed with a debilitating illness or condition .
Conclusion
Long term health insurance can lessen your financial burden when it comes to all of the health expenses that could come from someone becoming ill. That is why it's important to have long term life insurance in place.
You may run into some of these individuals who are under the impression that they don't need long term care insurance. Sometimes, this is because they believe that there are other sources for paying for things such as medical bills and costs related to their estate. However, these individuals aren't taking the time to understand how much money they need to save up in order for their families to remain financially stable.