Long Term Care Insurance Policies
Long term care insurance (LTCI) policies are a little different than other types of health insurance. Health insurance usually covers medical services in case a covered person is sick or injured. LTCI, on the other hand, helps provide nursing care in case a person cannot perform the “activities of daily living” or other qualifications, as specified in a particular policy.
LTCI is meant to provide nursing care. That could be in a nursing home, assisted living facility, or home health care. Some even help with the costs of care that are provided by a family member. You need to look at the specific policy that you are considering to see what it covers. Some may only cover nursing homes, for example, while others allow more flexibility in determining how that care will be taken. You could learn more about the need for long term care insurance.
Tax Qualified vs Non-Tax Qualifed LTCI
If you are shopping for LTCI, you probably want to be aware that some long term care insurance policies are tax qualified. That means that the premiums could be deducted from your federal (and possibly state) income reporting when you prepare tax returns. [...]
Single Premium Whole Life
Are you planning for a secure retirement and eventual transfer of your estate to beneficiaries? You do not have to be very wealthy to plan for this. Let us look at one product that is becoming more noticed these days with advisors and people who are doing estate planning. It can help turn one amount of money into a larger estate to leave behind. This product is called single premium whole life (SPLI).
Why Is SPLI Different?
The most obvious difference is that you make one large cash payment when your coverage begins. You are probably used to having a monthly bill! That one lump sum funds your coverage, and so you do not have any more payments to make.
So you see that you have given the insurer a certain amount of money. In return, they issue you a policy for a sum that is probably a few multiples of the original amount. Many people are using this product to fund their estate.
An Example To Explain Single Premium Life
Look at the example of a healthy 70 year old who retired from the public school system. Her savings and teachers pension enable her [...]
What is PMI?
PMI (private mortgage insurance), is usually required by lenders if you do not put down, at least, 20%. If you get a loan which requires a lower down payment, you will probably be required to add this coverage in. What does PMI do? It products the lender in case you default on your note. It does not protect the borrower, but it protects the lender. Do I need to write that again? PMI protects the lender in case you default on your mortgage.
Why Avoid PMI?
This may seem like a small price to pay if you do not have a twenty percent down payment. In fact, it may be the best – or only – option for some buyers. However, in these days of mortgage problems, you may want to take at some reasons to avoid this coverage if you can.
Cost of PMI
This coverage usually costs about 1% of the loan value every single year. If you have a $200,000 loan, you are paying $2,000 a year to protect your mortgage company. That is very generous of you. But if you feel the need to donate money, I can suggest several charities [...]
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