Paved With Good Intentions

Many years ago, well before modern culinary science or convenience made the scene, folks would put foodstuff in ground or underground to delay or capitalize on putrefaction. Those were days when hell was a good thing. When the term was more a verb and families gathered ‘round the harpsichord to sing about hearty times ahead when they would celebrate the harvest and hell some potato. Or perhaps your omma still has you dig up the back yard to hell some Kimchi. That road to hell is paved with delicious intentions.

Yet as etymology would have it, the word was eventually tagged as #fieryplaceofburningdamnation and the rest is history. Spoiler alert: The ‘road to hell’ proverb is not about food storage, unless you’re that rare potato capable of intent (eyes on you, Irish Lumper).

The aforementioned notwithstanding, it seems to us that evaluating or upgrading our life insurance, or even worse, acquiring long-term care insurance are a couple of goals that often go unrealized, despite that bag full of good intent. But it’s kind of understandable.

Doubtless we know that both types of insurance are important. Still, end-of-life matters can feel abstract—even more so when we’re younger and perceivably immortal. As we age life gets busy, time goes by fast and insurance can be the chore we keep relegating. Then there’s that term policy—say no more—and our good intentions are losing steam.

Blame life’s fleeting nature. Or avoid blame altogether. Alternatively, here are some reminders about why these insurance instruments are a crucial part of financial planning. And how adding these to your wealth-management strategy can serve well to enhance and preserve your investment legacy.

First, life insurance. One problem is that while life insurance talk is out there its more dynamic value can be overlooked or understated. For example, tax savvy investors may know that similar to the Roth IRA, investment in some form of permanent life insurance can include tax-free access to policy cash values or dividends. Too, they can be used to establish trusts to fund estate taxes, satisfy debt, or provide needed liquidity for business continuation.

Long-term care insurance is arguably less familiar but certainly no less important. Traditional retirement planning vehicles are not typically designed with long-term care in mind. But if or when* it becomes necessary, long-term care can bring a heavy financial burden. Today, we believe long-term care insurance is crucial to your strategy and to preserving your wealth.

The ideal time to capitalize on the investment potential of both life and long-term care insurance is before retirement. Starting early typically makes it easier to negotiate terms and optimize your benefits. Even so, take heart, you’re rarely out of options. Start today and turn your good intentions into better things ahead.

How much life insurance do you need? Check out our Life Insurance Calculator ↓

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* Long-Term Care Numbers

  • 69%: Percentage of adults who are 65 years or older who will require some form of long-term care
  • 3 years: Average time those who need it will require long-term care
  • 20%: Percentage of adults who are 65 years or older who will require long-term care for more than 5 years

— U.S. Department of Health and Human Services / 2020

None of the information in this document should be considered as tax advice. You should consult your tax professional for information concerning your individual situation.

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