Selecting the right type of life insurance can be daunting particularly if you are not sure how they work especially with so many insurance companies in Lakewood, CO full of varying information that may sound confusing. However, a certified insurance company like Colling Insurance Services Inc. have experts who can guide you on choosing the most suitable type of life insurance. Here are some guidelines that can help you narrow down your options.

Term insurance

This option is best suitable for individuals looking to purchase life insurance for a specific period.  Term insurance helps you to match the length of your need to the length of the term policy. If you have children who just started school, and you want to ensure there will be enough money for their university education, then you might consider purchasing a 20-year term life insurance. Term insurance is also for those who have limited finances and are looking for a large amount of life insurance. In other words, term insurance pays you in case you die in the period of the policy.

Permanent life insurance

This insurance covers you for the duration you are alive. A permanent life insurance policy pays death benefit irrespective of whether you die tomorrow or live beyond 100 years. You can borrow this money even when your credit is poor. The death benefit is typically collateral for the loan, and in case you pass on before it has been fully settled, the company will collect what is due for them before determining what will go to the beneficiaries.

For quotes or policy discussion visit colling Insurance Services Inc. in Lakewood, CO today and our insurance agents will be glad to assist you.

The Graying of America is a book written by Donald H Kausler that was originally published in 1996 and has been updated since. It describes the trend of Americans, on average, getting older and the resulting needs and economic changes that arise from this trend.

Baby boomers are the generation that was born after the end of WWII from 1946 to 1964. They are all now in retirement age or nearing it. Improvements in life expectancy in America now make the potential need for long-term care increase for so many of these older Americans.

Preparing for the Need for Long-Term Care

Long-term care is expensive. Government reports say that the average monthly cost for a semi-private room in a nursing home in 2016 were $6,844 and a private room was $7,698. This means that there may be a need for over $82,000 to $92,000 per year to pay for this care for an older adult.

Morning Star reports that for those who are 65 years or older there will be two times that they can expect to need long-term care. One is caused by illness or injury. The other is at the end of life. For each of these times, the average duration for a stay in a long-term care facility for a male is 0.88 of a year and 1.44 years for a female.

This means that, on average, the financial need may be up to $144,000 to $162,000 for a male and $236,000 to $265,000 for a female. This is only the average. Some may experience a much greater need.

Things to Consider

The main consideration is to make sure that long-term care insurance is adequate to cover the cost of long-term care that cannot be paid with other assets. Not only does it have to be a sufficient amount, but it also has to last for a long enough time. Also, a factor of the inflation rate needs to be applied because the cost of long-term care continues to go up.

Work with your agent at Colling Insurance Services, Inc. serving Lakewood, CO, and the surrounding area to understand your options for long-term care insurance. To make an appointment to discuss this, contact your agent at Colling Insurance Services, Inc. in Lakewood, CO by calling 303-987-3331.