Whole or term life insurance can provide more than just a simple payout to beneficiaries when the policy holder dies. Many people are unaware of the benefits of life insurance that are typically offered in their policy. Some policies may provide riders that can help pay for chronic care needs as a person ages.
For example, for a baby boomer who may need nursing home care in the future and expects to live a long time, the anticipated costs may be quite scary. When a person gets ill, he or she already may have a lot to deal with. Financial worry may only add to this burden. How do you prevent this? If you can start this conversation with your future beneficiaries earlier, you may figure out which of your long-term care needs can be addressed and which could need additional assistance. Consider your options. So many people avoid telling beneficiaries about their problems but then they are overwhelmed and ill-equipped to handle the outcomes. To read more about life insurance benefits, check out this page: life insurance benefits.
After determining your options, think about your expenses, as this could help you determine the right policy and coverage for your whole or term life insurance. For a person who has a long-term illness that requires chronic care, there are typically two kinds of insurance policies, such as the traditional long-term care insurance policy and a policy that offers you an optional rider to advance a death benefit for long-term care. Different policies may also offer different benefits of life insurance.
While the need for using your death benefits and chronic care seem in the distant future right now for people who are young and in good health, it may still be something good to plan for. As you plan, you may increase the possibility of getting the help that you want at home or in a nursing facility, and if you use the rider, you could know the benefits ahead of actually using them. It is good to know that some rider benefits could also be taxable and using them may decrease the death benefits of life insurance for your beneficiaries. Hence it may be important to consider the specifics of your whole or term life insurance policy well to help you figure what to expect for you and your beneficiaries.
For more information on how to modify your life insurance policy, check out this article, “What are Life Insurance Riders?”
