Transitional benefits is a term that The Benefit Guys coined to describe the various benefits that will go with you throughout your life.
Peoples’ needs for various insurance products change over the years. In your 20’s and 30’s you are probably more concerned about mortgages and liquidity for your families, and life insurance is on the top of your mind, as it should be. Your budget is also key, and probably, a large amount of term insurance would be appropriate. As you start to age, you have more concerns about developing a critical illness such as cancer and heart attacks. Get into your late 40’s and 50’s and suddenly the reality of long term health and long term care requirements set in.
How do you plan ahead and make any sense of it? There are now some products available in the marketplace, that will allow you to do just that, plan ahead.
The Benefit Guys would like to review the flexibility of term insurance. As you age your needs will change. The requirement of insurance is no longer to cover debts, but more permanent challenges set in, such as the reality of capital gains taxes and final expenses. Most term insurance can be converted to a permanent type of life insurance that will last until you die. There are no medical requirements to make this change, and you can usually do it right up until you are age 65.
Universal life is also a very flexible insurance product that again can be easily changed and modified over time to meet your ever changing needs.
There are new “hybrid” products starting to appear in the market place. This type of insurance starts as one type of insurance benefit and at age 56, this benefit begins to change, over the next 10 years, into a different type of coverage. Let’s use an example. You require some life insurance, and/or critical illness, and/or disability insurance during your younger and working years. You have one or a combination of these personal benefits in force. You get to age 55 and haven’t had any claims. You are starting to think about long term facility care for your later senior years.
With these hybrid plans, starting at age 56, and over the next 10 years, the basic amount of your original life insurance, critical illness or disability coverage begins to decrease and the new available monthly income becomes available for the purpose of paying for long term care costs. This is all done automatically, without any medical requirements or paperwork. In some cases, if you haven’t made any claims, you will in fact get a refund of a portion of your previously paid premiums. You can also take advantage of home care rather than care in a facility.
The Benefit Guys cannot in a few short paragraphs begin to explain how these transitional benefits apply to your personal situation. If you have looked around at the other various pages on this site, then by all means complete the Client Data page, by clicking here. The Benefit Guys will get in touch with you by your chosen method of contact and answer any other questions you may have.