Premiums are relatively low for younger policyholders and can be guaranteed for a specific number of years. Most companies allow you to renew your term insurance until age 75 or 80, but premiums increase with age. Medicaid will pay much of the costs, but you must use up your savings and assets to qualify for Medicaid Nursing Home Coverage. Of course, not everyone is a candidate for long-term care insurance. But with changes in Medicare and Medicaid and prices on the rise, this type of insurance is becoming more widely used.
Most businesses insure themselves against the loss of building and equipment.
But many fail to insure their most valuable assets - key employees. Key employee insurance allows a business to purchase whole life policies on their most valued employees. The company would be both the owner and the beneficiary of the policy, while the key employee would be the insured. If the key employee should die unexpectedly, the policy's death benefit would compensate the company for its loss, which could be considerable. Although term life could be used for this type of insurance, whole life offers the advantage of accumulating cash value, which the company can access through a low-cost policy loan or, in the case the employee leaves, by surrendering the policy.