Life Insurance & Long Term Care Combinaton Policies

This subject no one seems to want to talk about.  To do so would admit we are mere mortals.


Old policies(ten years old or older) should be reviewed every ten years for many reasons.

1. Policy rates or premiums are lower today than ten years ago and may be lower in ten years from now if people continue to live longer.  That means you may be able to 1035(tax free transfer the cash value) from an old policy to a new policy that could increase your death benefit, reduce your premium payments or both.  The IRS Code 1035 lets you accomplish this without tax consequences.

2. Most of our new Life Policies offer a Long-Term Care Rider which would allow you to access the Death Benefit of the policy for acute care or to withdraw funds for a long-term care facility.

3. With just Long-Term Care Insurance, "you either use it or lose it."  Numbers vary, but about sixty percent of the Long-Term Care policy holders "lose it!...all of it!."  Long-Term Care Insurance is a giant abyss that the policy holder has been "swayed" into buying so as not to become a burden to his or her children.  Rates continue to go up every year and there is no way out except to cancel.  The worse increase in rates is for women when the reach 72 - Look Out! will not believe the amount of increase.

4. A Life Insurance & Combination Long-Term Care Policy may very well answer your long-term care concerns.

5. Simple other reasons for your review of an old life policy.  Suppose a client was working on a 1035 when we discovered that he had his x-wife of twenty years as his beneficiary on that old policy.  Suppose a client that had not had a cigarette in fifteen years, finds out that he is still paying  the same very high premiums based on his still being a smoker.  There are a host of other compelling life examples to convince you of doing an Insurance Review with us.  In short,  just do it.  It cost nothing.

Is your "X" still your beneficiary? How about being a non-smoker now -  is your policy updated?

"Neither NEXT Financial our its representatives are qualified to give tax advice."