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Nowadays, life insurance has become a critical component of financial planning. It gives peace of mind to you and your loved ones and provides them with financial protection if the worst occurs. While considering which life insurance policy to obtain, you need to consider various aspects to look into details. To make the right decision, we want to highlight one of the implicit benefits of some policies – you can borrow money from your life insurance. This option offers you a convenient and low-cost source of funding that you can rely on in different situations.
There are two main types of life insurance – permanent and term. However, if you’re looking for a financial backup plan – whole life or universal life insurance, also known as a permanent policy, is your way to go.
There is no cash value with term life insurance, which many people find a more affordable and practical option. It is only intended to last for a short time, typically between five and thirty years.
The cost of whole life and universal life insurance plans is higher than term insurance, but they do not have a set expiration date. The policy is in effect for the insured person’s entire lifetime if necessary premiums are paid. Although the monthly premiums are more expensive than the term, a cash value account that is an element of the policy grows as more money is deposited into it than the cost of insurance. It usually takes a few years for the cash value to increase to a point where borrowing from life insurance is reasonable. The cash value is a buffer against the escalating insurance costs as you age. This keeps rates stable throughout your life and prevents them from rising to unaffordable levels in your older years.
One of its key benefits is the ability to use permanent life insurance while still alive. A type of permanent insurance known as whole and universal life insurance offers lasting protection in addition to a cash value component. And also you can take benefit from it during your life for various purposes.
Whole life insurance policies have several tax benefits that make them a desirable investment choice. For instance, you do not pay taxes on the interest earned unless you withdraw the money. As the insurance’s cash value grows tax-deferred. Additionally, your beneficiaries obtain the death benefit tax-free, which might lead to significant tax savings.
Once a life insurance policy has built up enough cash value to allow you to take out a loan in the amount needed, you can borrow against it. Depending on how your policy is set up, this may take several years to accumulate.
The maximum you can borrow against your life insurance is generally up to 90% of its cash value. However, each insurance company will have different standards in place.
There is nothing to borrow because term insurance doesn’t include a cash value component.
Nevertheless, it’s crucial to maintain the condition of your policy. To keep the coverage in effect, pay your premiums on time. If you default on your loan payments, the policy might lapse. In this case, the death benefit could be reduced or lost entirely.
Working with a competent insurance broker is essential if you want to get the most out of your life insurance coverage. At Baker Consulting, we can assist you in understanding many aspects of life insurance options available and suggest one that best suits your requirements.
Additionally, we may guide you in the following:
Regardless of what happens, remain financially secure and prepared.
Moving to a personal care home is a big decision based on many factors. Cold winter months are drawing near, and the Farmers Almanac is forecasting a Winter Wonderland for the northeastern United States. Keeping this in mind, and to avoid winter chores, this is a great time to consider a respite stay and experience first-hand what life is like living in a personal care home.Experience an easier moveWinter weather conditions like snow and ice can complicate the move to a personal care home. Moving before bad weather conditions arrive allows seniors to avoid potential weather-related delays, accidents or other challenges during transportation and when moving belongings.Try out the personal care homeRespite care offers seniors a chance to try out a retirement community without making a long-term commitment. Country Meadows offers all-rental retirement living accommodations, so seniors are not beholden to a lengthy lease or an ownership stake. A respite stay can help older adults see for themselves whether or not the community is a good fit for a permanent move.Avoid winter weather challengesMany older adults struggle with winter chores such as shoveling snow, chipping away ice, walking on icy sidewalks, managing heating systems and driving in inclement weather. A temporary respite stay at a personal care home eliminates these responsibilities, as well as many other daily chores, removing worries. It provides seniors the opportunity to settle into their new living arrangement without the added stress of winter weather.Access daily assistance and health servicesAlong with cold weather, the winter season can also bring several challenges for older adults to maintain wellness. A major benefit to living at a personal care home is prompt, easy access to health resources and assistance. This is especially beneficial for seniors with health concerns and mobility issues. If a resident requires assistance with medications, dressing, bathing or another daily activity, simply push a call button and a personal care associate can provide needed help. And a wellness team keeps an eye on each residents overall health.Reduce lonelinessMany seniors experience loneliness and isolation while living at home. The winter months can magnify these feelings. Respite care offers opportunities for social interaction and engagement with new neighbors and friends in the same age group, reducing feelings of loneliness and providing mental stimulation.Participate in activities, enjoy entertainment and outingsSenior living communities often offer a variety of enriching activities and events. At Country Meadows, our Vibe program considers each residents physical, cognitive, social and spiritual needs and customizes activities, entertainment, outings and purposeful service opportunities. Events are organized seasonally by categories and offer opportunities for socialization and fun. When living at a personal care home, one doesnt need to brave the elements outside, because all the fun during winter is happening indoors, fostering a sense of belonging among residents.Provide relief for family caregiversA respite stay offers a break for family members and friends providing care in a seniors private home. This break is especially appreciated during winter months when private caregiving responsibilities might become more demanding due to inclement weather, illnesses or holiday-related activities.When considering respite care at a personal care home or retirement community over the winter months, its important to do some homework. Families and seniors should research and visit potential facilities to ensure the community can meet specific needs and preferences of each individual. The decision for respite care should prioritize the well-being, comfort and specific needs of each person, aiming to provide a supportive and enriching experience. Contact Country Meadows Retirement Communities today.
If youre part of a blended family (meaning you are married with children from a prior marriage in the mix), youre no stranger to the extra considerations and planning it takes to keep your familys life running smoothly from which parent your children will be with for the holidays to figuring out the schedule for a much-needed family vacation. Youve also probably given some thought to what you want to happen to your assets and your family if something happens to you. But what you might not have realized is this: If you dont create a plan for your assets before you die, the law has its own plan for you that might not reflect your wishes for your assets, especially your retirement assets. And if youre in a blended family, this can have a significant financial impact on the ones you love and even create expensive, long-term conflict.This week, we explain how the law affects retirement distributions for married couples, and why you need to be extra careful with your retirement planning if youre in a blended family to ensure your retirement account assets go to the right people in the right amounts after youre gone.Be Aware of How ERISA Affects 401K DistributionsIf youve remarried, you and your new spouse have probably talked about updating the beneficiary designations on your retirement accounts to reflect your blended family arrangement. (If you havent talked about it, you need to talk about it ASAP). Sometimes, people who are remarried decide to leave their retirement funds to their children from a prior marriage and leave other assets like their house and savings accounts to their current spouse. You may do this to avoid future conflict between your spouse and your children over your assets.But even if you want to leave your retirement for just your children, if youre married and your retirement account is a work-sponsored account, your children wont inherit the entire account even if you name them as the sole beneficiaries. Thats because the federal Employee Retirement Income Security Act (ERISA) governs most employer-sponsored pensions and retirement accounts. Under ERISA, if youre married at the time of your death, your spouse is automatically entitled to receive 50 percent of the value of your employer-sponsored plan even if your beneficiary designations say otherwise.The only time that your surviving spouse would not inherit half of your ERISA-governed retirement account is if your spouse signs an official Spousal Waiver saying they are affirmatively waiving their right to inherit 50 percent of the account, or if the account beneficiary is a Trust of which your spouse is a primary beneficiary. IRAs Have Different Rules Than 401KsIf you want your children to inherit more than 50 percent of your work-sponsored retirement benefits, and completing a Spousal Waiver isnt an option, consider rolling the account into a personal IRA instead.In contrast to 401(k)s and similar employer-sponsored plans, IRAs are controlled by state law instead of ERISA. That means that your spouse is not automatically entitled to any part of your IRA. When you roll a 401(k) into an IRA, you gain the flexibility to name anyone you choose as the designated beneficiary, with or without your spouses consent. On the other hand, if you want to ensure your spouse receives half of your retirement savings, make sure to include them as a 50 percent beneficiary or better yet, have your individual retirement account payout to a Trust instead. With a Trust, you can:Document exactly how much of your retirement you want each of your loved ones to receiveControl when they receive the funds outrightEasily update and change the terms of your Trust without having to remember to update your financial accounts.Beneficiary Designations Always Trump Your WillWhether you have an employer-sponsored 401K or an IRA you manage yourself, there is one critical rule that everyone needs to know: beneficiary designations trump your Will.A Will is an important estate planning tool, but most people dont know that beneficiary designations override whatever your Will says about a particular asset. For example, if your Will states that you want your retirement account to be passed on to your brother, but the beneficiary designation on the account says you want it to go to your sister, your sister will inherit the account, even though your Will says otherwise.Similarly, lets imagine that you get divorced and as part of your divorce decree your ex-spouse agrees that they will not have any right to your retirement fund. However, after the divorce, you forget to take their name off of the beneficiary designation for the account. If you die before updating the beneficiary designation, your former spouse will inherit your retirement account. If you forget to update your ERISA-controlled account and have remarried, your current spouse would receive half of the account and your former spouse would receive the other half. Thats why its so important to work with an estate planning attorney who can make sure your accounts are set up with the proper beneficiary designations and ensure that your assets are passed on according to your wishes.Work With An Attorney Who Makes Sure All Your Assets Will Be Passed On How You Want Them ToUnderstanding how the law affects different types of assets is essential to creating an estate plan. But theres more to it than just having a lawyer you need an attorney who takes the time to really understand your family and your assets so they can design a custom plan that achieves your goals for your assets and your legacy. Thats why we help our clients create an inventory of all of their assets to ensure that every asset they hold is accounted for and passed on to their loved ones exactly as they want it to.Contact Entrusted Legacy Law at 412-347-1731.
As we journey through life, many people find themselves facing one of the most pressing concerns: ensuring that they provide care and support to their loved ones, particularly their aging parents, as they transition into their senior years. Long-term senior care frequently raises questions and concerns, with one of the most common worries being, What if my parents run out of money?The cost of senior care services can indeed be a significant burden on families. Many are apprehensive about the affordability of these services and the potential financial strain they might impose. This is where a comprehensive continuum of care approach, like the one offered by Grace Pointe of Greeley, can make all the difference.Tailored Care for Your Unique NeedsOur team of experienced care professionals adopts a personalized approach to assess the specific care needs of each resident. We commit to ensuring that you dont pay for services that you or your loved one dont need. This ensures that you wont bear unnecessary costs, and your loved ones will receive the appropriate level of care to enhance their quality of life.If the affordability of long-term senior care concerns you, Grace Pointes approach is here to help. We dedicate ourselves to providing the right care at the right cost, supporting both your financial peace of mind and your loved ones well-being.To learn more about our long-term senior care services and our continuum of care approach, visit our Grace Pointe of Greeleys Long-Term Senior Care Services page.Frequently Asked Questions About Long-Term Senior CareAt Grace Pointe, we understand the financial concerns that come with long-term senior care, and were here to put your mind at ease. Our continuum of care services is designed to ensure affordability while providing your loved ones with the precise level of care they need. We understand that every individual is unique, and their care requirements can vary greatly which is why we have compiled this list of FAQs about long term senior care services below.What is long-term senior care, and when is it needed?Long-term senior care is a comprehensive service designed to provide assistance and support for seniors who may require help with daily activities due to age-related challenges or medical conditions. It becomes necessary when individuals find it increasingly difficult to maintain their independence and well-being.How do I know which type of long-term senior care is suitable for my loved one?Our experienced care professionals at Grace Pointe will assess your loved ones individual needs and recommend the most appropriate level of care. We believe in personalized care plans to ensure your loved one receives the best possible care.What is the cost of long-term senior care at Grace Pointe, and how can I afford it?The cost of long-term senior care varies depending on the level of care and services required. Grace Pointe offers a continuum of care approach, ensuring you only pay for the care your loved one needs. We will work with you to explore financing options, including community resources for Medicaid and Veterans benefits, to make care more affordable.Can I visit my loved one in long-term senior care at Grace Pointe of Greeley?Yes, we encourage family visits and understand the importance of staying connected. We also encourage you to enjoy activities and events to see the life of Grace Pointe experienced by your family members. There are some guidelines for visiting after hours to ensure the safety and comfort of the Grace Pointe residents, which can be discussed with our staff.How can I learn more about Grace Pointes long-term senior care options?You can explore more details about our long-term senior care services on our Long-Term Care Services page. Feel free to contact our team for specific information and to request a tour.How can Grace Pointe of Greeley help ensure that I dont pay for services my loved one doesnt need in the long term?At Grace Pointe, we understand the importance of affordability in long-term senior care. We offer a continuum of care approach, which means we tailor care plans to your loved ones specific needs. By doing so, we ensure that you only pay for the necessary services, maximizing affordability while maintaining high-quality care. Can I modify my loved ones care plan if their needs change over time?Yes, we understand that care needs can change. At Grace Pointe, we regularly review care plans and adjust them to accommodate changing requirements to ensure your loved one receives the best care.For answers to common questions about long-term senior care and all our services, visit our FAQ page.Dont let financial concerns hold you back from providing the best care for your aging parents. Grace Pointe of Greeley is here to support you every step of the way. Reach out to our care team with any other questions you may have about your familys care.
We offer coverage for all situations: Individual, family, small business, and large group. With Healthcare Reform and the industry's ever-changing landscape, Baker Consulting still has options to choose from. Whether you are looking for better coverage, recently uninsured or its your first time purchasing health insurance, we will help you find a high-quality, affordable plan. Depending on your budget and your need, we will custom design a plan for you. Whichever fits you best, Major Medical-ACA Compliant, Short Term, Fixed Benefit, and Guaranteed Issue plans are all available to you. Even if your employer offers you coverage, an individual plan could still be the best option for you. Additionally, dependent coverage through your employer may not always be the most affordable option either. Customizing your coverage is essential as health insurance is not a one size fits all type of product. Therefore, a BCS agent will assist you in determining what will work best for your situation. With all the different deductibles options and product designs, choosing the right plan could be difficult and our mission is to simplify this process. Licensed States: UH, SD, PA, OH, KY, NC, SC, VA, WV, GA, TN, TX, FL, AL, AZ, IN
We offer coverage for all situations: Individual, family, small business, and large group.With Healthcare Reform and the industrys ever-changing landscape, Baker Consulting still has options to choose from. Whether you are looking for better coverage, recently uninsured or its your first time purchasing health insurance, we will help you find a high-quality, affordable plan. Depending on your budget and your need, we will custom design a plan for you. Whichever fits you best, Major Medical-ACA Compliant, Short Term, Fixed Benefit, and Guaranteed Issue plans are all available to you.Even if your employer offers you coverage, an individual plan could still be the best option for you. Additionally, dependent coverage through your employer may not always be the most affordable option either.Customizing your coverage is essential as health insurance is not a one size fits all type of product. Therefore, a BCS agent will assist you in determining what will work best for your situation. With all the different deductibles options and product designs, choosing the right plan could be difficult and our mission is to simplify this process.