Buying life insurance which can also be used for care.
Our financial advisor wants my husband and I to buy a life insurance that can also be used for care should we need it. My husband’s health is not the best so the insurance will probably decline him. I was accepted. I can get a better rate if I respond by Friday because the rates are going up next week. I can choose a 200K or more insurance starting at 4800K a year. I have a $6600 paid up Life insurance that would Be used as a first payment. All other payments can
come out of our savings or IRA or both. At the end, the benefit is having money for care if needed and not paying high taxes for large withdrawals. Should we do this or is it better to save or invest our money? Thank you
Terry Says
I think you should go ahead with the combo purchase, if your advisor has seen your entire financial picture. If you don’t understand how they work, read this article.
BUT have you considered this: If your husband is ill and needs care, you will be spending a lot of money out of pocket on his care. Will you have enough to continue paying that combo policy premium for the next 10 years? (typically they are sold on a 10-year premium schedule maximum). That’s something to consider before getting involved. It would give YOU the benefit of LTC — but do you need the life insurance benefit on YOUR life after your husband dies — if he predeceases you? Did you discuss all this with your advisor? You can get good independent advice on policies at MAGA LTC 800-533-6242. I trust them completely.
