American Investment Planners LLC
500 North Broadway, Suite 260, Jericho, NY 11753
(516) 932-5130 / (866) 932-5130
Upon deciding that you are ready to retire, one of the first things you should do is meet with your financial advisor to ensure that all of your finances are where they need to be. While you may be convinced that you have enough money put away to relocate or embark on the dream vacations you have thought about for so many years prior, one aspect of retirement that is often overlooked is long-term care. Just imagine would happen to your retirement savings if you or your spouse needed additional care and support due to an unforeseen illness or disability! Although you may be prepared to cover the cost of things you dreamed about having once you officially entered the retirement phase, one mustn't forget to think about the things they may need.
In preparing for you and your spouse's future after retirement, we suggest sitting down with an experienced financial planner to learn the options you have to keep your savings from being wiped out due to a long term ailing illness. Here are just a few options you may want to consider -
Combine Forces - Depending on your insurance carrier, you might be able to take advantage of permanent life insurance policies or annuities that come with long-term care riders; when all is said and done, either of these options could be more cost-effective than a standalone long-term care policy. This is because unlike other policies, the premiums for these types of plans are typically paid up front or in pre-determined payments, therefore eliminating the opportunity for your rate to increase. However, be mindful that your premiums must be up to date for fixed rates to be applicable.
Permanent Life - If a long-term care option with life insurance is your first choice, you must have a true need for life insurance. Furthermore, as you go through possible policies, they should primarily be evaluated based on the quality of its life insurance offerings. However, keep in mind that the cost and availability of life insurance considers factors like age, health, and the type/amount of insurance purchased, so be sure that you qualify for this type of coverage before pursuing it.
Annuity - By definition, annuities are insurance contracts that provide future payments at regular intervals in exchange for the current premiums. If any amount is withdrawn before age 59½, it may be subject to a 10% federal income tax penalty. Generally, the earnings portion of annuity withdrawals is taxed as ordinary income. Once acquired, this income can be used to cover the cost of life insurance or long term care premiums.
Regardless of which route you choose to take, you and your spouse can rest assured knowing that you will have the financial security you need to enjoy your years in retirement when you take the time to carefully plan for it. Are you ready to get started? To learn how American Investment Planners LLC can assist you with your retirement planning needs, please visit us at www.
Above Information Courtesy of Emerald Connect
Above Information Courtesy of Emerald Connect
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