For Mark Roberts’ Use: You’ve certainly heard the news by now: The cost of healthcare in the US continues to rise, outpacing inflation and cost of living increases to pensions and Social Security. In retirement, healthcare becomes an even larger concern, both due to the fact that you’re more likely to suffer health problems, and the fact that you’re living on a more fixed income. You might be worried about medical expenses, in the event that you contract a serious illness or have an accident.
Contrary to common belief, Medicare doesn’t always cover everything you need. You will continue to pay co-pays and deductibles, and Medicare doesn’t cover some “optional” expenses that might not feel so optional when you need them! In particular, nursing home care or home health care can be expensive, and Medicare coverage for these services is quite limited.
You might be surprised by this option, but your life insurance policy might be able to help you out. As you know, the primary purpose of life insurance is to cover burial expenses and any debts left behind after you pass away. But some policies also allow you to build cash value within them, by paying more than your monthly premiums.
Cash-value life insurance policies can come in handy when you need to hire help at home, build a wheelchair ramp, or need special equipment that is not covered by your insurance. These are just some examples. In the event that you need to withdraw some of that cash or take a loan against the policy, you can use the money for any purpose you wish.
If you don’t ever need to withdraw the additional cash value within your life insurance policy, the money will pass to your heirs. Therefore, these policies are a terrific way to hedge against future risks, while preserving your investment in the event that you don’t end up needing it.
Does your life insurance policy include the option to build cash value? It might, or you might prefer to roll your old policy into a new, updated one. Call us to discuss the issue, and we can help you decide if this method of preparing for the future is right for you.