Utilizing a Life Policy Early
The typical life insurance policy is purchased and placed in a safe place to collect dust. A life insurance policy is a living document and needs to be updated as "life" happens. I know what you're thinking right now.... "that can't be?" "How can I access life insurance proceeds before death?"
Not all life insurance is the same, but here are 2 ways a Pekin Life Insurance Policy can benefit you while you are still living.
- Early access - terminally ill. This rider allows the owner of the policy to access up to the lessor of $250k or 50% of the face amount of the policy. The insured must be deemed "terminally ill" with less than two years to live.
- Cash Value - Take a loan out from the cash value and be your OWN BANKER. Take that much needed trip, pay for school, or assist with planting the crop.
- LTC - Long Term Care Insurance can be added as a rider with a benefit up to $350k. A maximum of 5% can be withdrawn per month.
When meeting with clients, I find all too common, the long-term care insurance box is not checked off and in effect. Long term care insurance is much broader than stand-alone nursing home insurance. Medicare will only cover the first 100 days of skilled nursing care. Then what is the plan? 70% of Americans over the age of 65 will need long term care. Now, select companies are offering long term care insurance can be attached to a life insurance policy as a rider. This ALLOWS access to your life insurance before you pass.
Receiving care from home is the preferred method among retirees. It is much more comforting to know, your final days at home, at the nursing home, or assisted living home will be covered, rather than having loved ones taking turns to care for mom/dad, taking a loan from the bank or selling assets to offset the cost. We often see families struggle financially and emotionally with the fact that prior planning was not offered or acted upon.
Pekin Insurance offers Long Term Care Insurance as a rider with the ability to access the death benefit before one’s passing. Adding Long Term Care Insurance to your portfolio is doing the necessary risk management to protect your loved ones and allowing you the opportunity to pass on assets to future generations. Life Insurance is for your loved ones. How does your current LIFE POLICY look?
