Increasingly, seniors are aware of their need for long-term care insurance. However, paying expensive premiums for insurance remains a burden, especially with the cost of premiums rises as a person advances in years.

Now a three-dimensional policy is available: (1) it offers a death benefit that passes to beneficiaries income-tax free, thus providing a wealth-transfer vehicle for estate planning; (2) the accumulated value of the policy continues to function as a savings vehicle from which needed funds can be withdrawn; and (3) the policy provides long-term care, which many people need, especially in later life.

An added bonus is that the policy offers a guaranteed return of premium, minus any long-term benefits paid out.

Call Ann Wolfson Associates to find out more.

If you once purchased life insurance, you may need to adjust the appropriate amount. Life insurance needs change as your life changes and time goes on. For example, you need more coverage when your children are young and you have a new home then you do when your mortgage is nearly paid and college days are passing. And remember as your savings increase to the point that there is enough to cover future expensed the need for insurances lessen.

How much should you purchase?

Add up your total debt (all debt) plus children’s remaining or future college cost, plus burial cost, then divide your income by one-half; then multiply that number by your remaining years of work. This should equal the amount of coverage you will need to purchase.

Here are some other reasons to adjust your life insurance coverage.

You remarry (new relationships bring different circumstances, new children and/or estate planning complications).

You divorce or widowed

You acquire a big expense

Your employer stops heavily subsidizing group life

You are unemployed or underemployed