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Another reason to add life insurance to estate planning

5/13/2016 | Kaplin Stewart Blog

Many Americans think of insurance policies as safeguards against the unpredictable nature of life. There are policies that can help pay for health care, auto repairs and damage to one’s home. Purchasing insurance is required when a home or vehicle is financed, and many in Pennsylvania purchase other types of coverage simply to have a degree of peace of mind. When it comes to estate planning, there are certain types of insurance that should be considered.

It is estimated that as many as seven out of 10 people who are nearing the age of 65 will eventually require some type of long-term health care. However, only one out of 10 people have purchased long-term care coverage to help with that expense. The reason why many people shy away from long-term care insurance is the fact that there is no benefit from such a policy unless the policyholder ends up having to seek long-term medical or nursing care.

Often, people are more comfortable buying a life insurance policy that will ensure that their beneficiaries are taken care of after the policyholder has passed on. What many people don’t know is that there are life insurance policies available that include a long-term care rider. This means that if the policyholder ends up needing long-term care, the death benefit can be accelerated and can be used to help fund a move into a long-term care facility.

Best of all, if the policyholder does not end up needing long-term care, then the full value of the life insurance policy will pass down to the designated beneficiaries. This means that the policy will be of value at one point or the other. Either the person who purchased the policy can use the benefit to help cover the cost of long-term care, or loved ones will benefit from a financial windfall after the loss of the policyholder. That is an attractive estate planning option for many in Pennsylvania.

Source:, “Integrating Life Insurance Into Estate Planning“, May 6, 2016