Life Insurance and Long-Term Care Insurance
For retirement planning, specialized insurance policies provide solutions. Life insurance plans provide income for our loved ones. Long-term care insurance is designed to supplement government plans like Medicare in helping to pay for care expenses not covered under Medicare.
There are many types of life insurance plans. These are typically divided into two major categories: term life insurance and whole life insurance. Term life insurance is a policy that provides coverage for a specified period of time. If you survive past the end of the policy term, there is no payout. Whole life insurance provides coverage until death. Many of these policies build value over time. In both cases, if you die while your plan is in effect, the insurance will pay death benefits to your surviving family members.
Long-term care insurance is another part of the retirement planning puzzle. Medicare and other government-provided benefits available to retirees only cover certain aspects of healthcare, particularly direct medical expenses. Medicare does not help pay for care costs associated with bathing, transportation, clothing, or household needs like cleaning, grocery shopping, and money management. Long-term care insurance “fills the gap”, providing the funds needed to cover these expenses when you need care after retirement.