Life & Long-Term Care Insurance

Life Insurance

Life Insurance Basics
A life insurance policy is a contract between a policyholder and an insurance company. The policyholder pays agreed-upon premium payments in order for a designated beneficiary(s) to receive a specific benefit when the policyholder dies. The two main categories of life insurance are term insurance and permanent insurance.

Term insurance pays a death benefit only if the policyholder dies during the set term of the policy. Permanent insurance pays the death benefit when the policyholder dies no matter when that is. For an equal death benefit, term insurance premiums are lower than permanent insurance premiums. And there are now various hybrid policies and policy riders which can add features to a life insurance policy, such as a long-term care rider.

Advantages of Life Insurance

  • Financial protection for loved ones in the event of your death: Provide coverage for mortgage loan payoff, higher education costs, business continuity, and other life events to lessen your family’s financial burden in your absence
  • No federal income tax on life insurance benefits
  • Permanent insurance often includes a cash surrender value the policyholder may withdraw or borrow against

Investors Who May Want to Consider Life Insurance

  • Anyone with loved ones who would be financially vulnerable in the event of their death
  • Investors whose heirs may face an estate or inheritance tax situation due to a large estate valuation
  • Business owners and partners who wish to structure business succession plans

What Northland Provides

  • Access to vast insurance planning options to fit the individual’s situation
  • Premier individual and group insurance products that keep pace with the evolving marketplace, inflationary and increasing costs, and changing legal environment
  • Experienced professionals to guide you through your insurance options

Life Insurance Policy Review Services

A review of an old or existing life insurance policy is vital for individuals to ensure that policy ownership, intended beneficiaries, performance, cost efficiencies, and policy benefits are aligned with the individual’s actual net worth and extenuating circumstances.

While life insurance death benefits are generally income tax-free, estate tax implications are considered when there is an incidence of policy ownership.  Other benefits of this service:

  • Comparative analysis of administrative/mortality expenses
  • Cash value/death benefit analysis
  • Historical, current, and projected performance review
  • Update intended beneficiary listings
  • Coordination of ownership

Policy Structure: Aligning Goals & Objectives

We work with over thirty insurance companies to provide life insurance policies to meet the following needs:

  • Family protection
  • Wealth transfer and estate tax planning
  • Retirement income
  • Annuity maximization planning
  • Key person insurance and buy/sell agreements for business owners

Long-Term Care Insurance

Long-Term Care Insurance Basics
The good news is we are living longer. The challenge is how we as a society will meet the expanded need for care for an aging population.
Long-term care insurance (LTC) is a contract between a policyholder and an insurance company. The policyholder pays agreed-upon premium payments, so that the insurance company will pay a pre-determined portion of the costs to provide for the policyholder’s everyday needs in the event they are unable to do so because of illness or injury. Daily needs include eating, bathing, dressing, transferring – the basic functions of everyday life. Long-term care costs can be associated with in-home care, assisted living care, adult day care, hospice care, or nursing home and extended care facilities.

A great misconception is that programs from the U.S. Government (e.g. Medicare, Medicaid, Social Security) will cover these costs, but that is not true. Self-insuring or providing for one’s own LTC insurance coverage is the only way to mitigate the risk of possible chronic long-term health issues with their associated increasing costs later. LTC is more affordable the earlier it is purchased; waiting until it is needed is usually not financially viable.

Advantages of Long Term Care Insurance

  • Financial protection for you and your loved ones against the ever-rising costs of debilitating injuries or chronic illnesses
  • More flexibility to determine where and when you receive health care when it is needed

Investors Who May Want to Consider Long Term Care Insurance

  • Anyone without sizable net worth to take care of themselves in the event of debilitating illness or injury
  • People with family health histories which required providing care for loved ones
  • Anyone with sizable net worth whose loved ones would be severely financially burdened by unexpected health care costs because of illness or injury

What Northland Provides

  • Access to various LTC providers and policy structures to find the right fit for the individual’s need
  • Premier individual and group insurance products that keep pace with the evolving marketplace, inflationary and increasing costs, and changing legal environment
  • Experienced professionals to guide you through your insurance options

Contact a Northland Wealth Management specialist to learn more

Annuity and Insurance products are guaranteed, underwritten, and issued exclusively by, the respective insurance companies. Penalties may apply for early withdrawal, and a 10% IRS penalty may apply for withdrawals prior to age 59½. Northland Representatives do not provide tax or legal advice: Consult your tax or legal advisor for specific information.