When it functions correctly, long-term care insurance, or LTCI, helps cover the rising costs associated with long-term care. People in the United States are living much longer than we were even 50 years ago with the average expected life span of a female at 85 years. Although advances in medicine have allowed us to live longer, as many as half of all Americans will still require long-term care at some point. With an average bill for a year of long-term care topping $100,000, many people elect to purchase a LTCI policy to help defray those costs when the time comes. As with many services aimed at the elderly, fraud is not uncommon with LTCI policies. Make sure you consult your estate planning attorney prior to purchasing an LTCI policy. Also consider the following tips:

• Compare policies. Do a thorough comparison of at least three policies before making a decision.
• Read all the fine print. As with any contract, some of the most important information may be buried in the policy among the fine print.
• Understand the conditions. One of the most important conditions to check is when does the coverage kick in. In other words, what constitutes the need for long-term care under the policy.
• Be truthful on the application. Just as with any other type of insurance policy, coverage could be denied when it is actually needed if you were less than truthful on the application.
• Research the company. Check with the state Department of Insurance regarding complaints. Also, research the company’s financial health and longevity in the business.
• Keep records. Create a file that includes the policy itself, any correspondence and all of your payment receipts in case they are needed later.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

Most people who are creating an estate plan for the first time consider purchasing a life insurance policy as part of their estate plan. You may already have a life insurance policy and wonder whether the coverage is sufficient. The only way to be certain that you actually need a policy and/or that the coverage is sufficient is to go over your estate assets and estate planning goals with your estate planning attorney. There are, however, some things that anyone considering the addition of a life insurance policy should think about.

Your age and health. Life insurance is less expensive to purchase when you are younger and healthy, meaning you should be able to lock in the best rates. This is also when most people need life insurance the most — before they have other estate assets that can be passed down in the event of death.

Know what kind you are buying. Life insurance falls into two basic types — term and whole. Term only provides a death benefit while whole life potentially earns cash value that can be borrowed or withdrawn later.

Know your objective. If you only want to provide a financial benefit to a beneficiary,  term insurance is likely your best bet. Talk to a financial advisor if you are considering whole life insurance. It can be a complicated investment strategy.

Decide how much you need. This can change over the years. If you are young and single, you may only need enough to cover debts and your funeral. As you age, you should factor in what it will cost to raise your children if you die before they reach the age of majority.

Shop around. Just as with other types of insurance policies the policy rates can vary widely. Take your time and compare rates before you commit.

Know when to terminate or convert. Life insurance is rarely the best way to invest your money. Review your financial portfolio and your needs on a regular basis to decide whether you still need to include a life insurance policy in your estate plan.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

Making the decision to purchase a life insurance policy is often easy. Deciding what type of policy to purchase and how much you need may be more complicated. The primary purpose of a life insurance policy is to provide a cash death benefit to a beneficiary upon the death of the insured. While all life insurance polices achieve this goal, permanent life insurance also provides an investment and/or cash reserve aspect as well. Deciding whether to purchase a term or permanent life insurance policy should be the first decision made after deciding you need a policy.

A term life insurance policy provides coverage for the death of the insured for a specific duration of time. A term policy is often purchased for 10, 20 or 30 years. Premiums for a term life insurance policy are usually the least expensive and are set at the time the policy is purchased. A term life insurance policy is often best if you are on a tight budget and are only concerned with providing the most coverage possible in the event of the death of the insured.

A permanent life insurance policy, unlike a term policy, does not expire at the end of a set duration of time. The policy continues until maturity, generally around age 95 and then pays out if the insured is still alive. Permanent life insurance comes in many forms, but the main difference between it and its term counterpart is that it also includes a cash reserve option and a cash growth function. Premiums are generally higher than a term policy; however, the money spent on premiums will earn money and can be used to borrow against in many cases, if necessary. If the purpose of a life insurance policy is to add to your investment portfolio as well as to provide death benefits to loved ones, then one of the many forms of permanent life insurance may be the best option. Consult with your estate planning attorney as well as a financial professional for additional information.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.