Van Bruggen-Wesselink Insurance

He said such policies can be purchased for pennies on the dollar if you’re insurable and you get it early enough. Brad said their agency and your attorney can help set up such plans within a family farm trust. Also on the estate planning side, life insurance can help cover inheritance and estate taxes, funeral and final medical expenses, and debt. Brad pointed out, “Many farms are now getting to the size and value where they’re going to blast through that estate tax exemption level.” Brian Van Bruggen added, “The other benefit of having a life insurance policy is that it’s tax-free money for the first beneficiary.” Finally, there’s a little-known option available through Pekin Life Insurance. “I call it ‘living benefits.’ Long-term care fits into that,” Schmitz said. “We have three different types of life insurance policies – transitional, whole and universal – where you can add a long-term care rider. Should the insured need long-term care services, they can start pulling the money out of their policy and covering those long-term care bills.” In other words, a person can use the life insurance benefit before they die. About 75 percent of people are going to need long-term care of some sort in their lifetime. In Iowa, expenses in a nursing home are averaging approximately $8,000 per month. Inflation on nursing home expenses is running about 15 percent. “Even if you’re lucky enough to be in a position to stay home, it’s $300 per day for an in-home nurse. Those costs are very real,” Schmitz said. The maximum benefit of a long-term care rider is $350,000 (although that may increase to $500,000). “Other companies may be different, but our company’s policy allows 5 percent of the death benefit per month to be taken out to cover long-term care expenses.” A person taking the maximum amount would have $17,000 a month to use towards long-term care expenses. That can help prevent drawing down family assets to pay for long-term care. Brad said if you purchase regular long-term care insurance and end up not needing it, the premiums you paid will just be gone. But, Brian said, “If you have the long-term care rider on a whole life policy, somebody is going to collect that money – either the insured or the beneficiary. Or it could be a combination of the two.” In addition, from an underwriting perspective, it’s easier to qualify for the longterm care rider on life insurance than to get coverage on a regular long-term care policy. Schmitz said even if you don’t think you’d qualify for life insurance, “Don’t say to ‘no’ to yourself.” He’s seen policies issued on 85-year-olds. “The real key is ask questions and listen. Brad and Brian will help you find out what you already have, what’s important to you, and then help you put together a plan that can help meet your needs.”

HERE'S TO COUNTLESS BRIGHT TOMORROWS

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