Life Insurance vs. Long-Term Care
As health conditions change, many employees now offer life insurance plans that offer extensive coverage for long-term care. Traditional term-life insurance policies pay out benefits upon death, but new plans are often structured in a manner that accounts for long-term care needs while you’re still alive. According to AARP, approximately 63% of seniors over the age of 64 will need long-term care at some point before they die. By the year 2050, this means that an estimated 27 million Americans will need in-home assistance after an illness or for a chronic condition (up from 13 million in 2000). Review the specifics of your life insurance plan for long term care coverage. While you may sacrifice your death benefits, you can dramatically increase your quality of life with adequate benefits.

Old Policies
Traditionally, you can keep old individual life insurance policies, even when you start a new job. Double coverage may be ideal if your out-of-pocket expenses for premiums don’t outweigh the benefits of each plan. To compare, calculate the cost of your debts versus your assets. If you still need both plans, continue paying premiums as you normally would. If not, drop the more expensive policy.

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