What is your most valuable asset? Home? Retirement accounts? Health? For most people it is their income. Without your income, you and your family cannot afford basic needs. “Disability Insurance is an often overlooked, but important planning tool.”
Disability Insurance Basics:
- Average cost of an individual policy is 1.5-3% of your income
- Individual policy benefits are TAX-FREE and typically replace 55-65% of your income
- Individual policies are highly customizable to meet your needs and budget
- Group Disability Insurance offers basic coverage and benefits are usually taxable
- Group Disability Insurance often terminates when you leave your job
- Helps to maintain the lifestyle of loved ones by covering living expenses
“If you have assets, protecting them with some form of Long Term Care Insurance should be discussed.” According to the U.S. Department of Health & Human Services, 52% of Americans turning 65 today will need some form of Long Term Care Services and support.
Importance of Long Term Care (LTC) Insurance
- Let your family enjoy their time with you rather then the stress associated with being a caregiver
- Nursing home costs in Hawaii exceed $110,000 annually
- An extended need for LTC Services can leave you and your family destitute
- LTC Insurance provides TAX FREE benefits when qualifying services are needed and used
- Flexibility to choose care in your home or an Assisted Living/Nursing Facility/Adult Day Care Facility
- Individual premiums may be tax-deductible*
- Business owners probably have the ability to deduct all or a portion of premiums*
How People Pay for Long Term Care:
- Traditional Long Term Care Insurance
- Hybrid of Life Insurance and Long Term Care Insurance
- Hybrid of Annuity and Long Term Care Insurance
- Self Insure by setting aside funds designated for Long Term Care expenses
- Spend down qualified assets below government limits and receive Medicaid (welfare)
*Please consult with your CPA or qualified tax advisor.
