Long Term Care
As insurers endeavor to make long-term care policies more affordable, some are developing new products that combine long-term care insurance with life insurance. These life insurance hybrids require an investment in a lump sum or payment of premiums for ten years, after which the insured receives either long-term care payouts or their heirs receive a death benefit. For instance, a 60-year-old would invest $50,000 and, in turn, could receive payouts of up to $216,000 (up to $3,000 per month for six or more years) for long-term care in a nursing home or assisted living facility or at home. If he or she were to die before long-term care is needed, his or her heirs would receive a $72,000 benefit.
NOTE: In the insurance hybrid mentioned above, funds used for long-term care reduce the death benefit to heirs.Read More
Covering the Medigap
Anyone approaching age 65 who will be enrolled in Medicare Part B should consider shopping for Medicare supplement insurance, popularly known as “Medigap” insurance. These policies, which are sold by private insurance companies, are designed to provide reimbursement for out-of-pocket costs that are not covered by Medicare. Although Medicare covers many health-care costs, patients must still pay Medicare’s coinsurance and deductibles. There are also some medical services that Medicare does not cover. A person’s right to purchase Medigap insurance is guaranteed during a six-month interval that begins on the first day of the month in which he or she is 65 or older and enrolled in Medicare Part B regardless of the condition of his or her health.
NOTE: Medicare Part B is an optional premium-based plan that covers physician services and outpatient hospital care.Read More
Have You Thought About Disability Insurance?
Most breadwinners with family responsibilities do not give disability insurance the same amount of consideration that they give to life insurance. However, heads of households may want to consider that just over one in four of today’s 20-year-olds will become disabled before they retire. This statistic alone should lead them to consider what would happen to their families if they were to lose their ability to work, even for a relatively short period of time. While some companies provide group disability insurance to their employees, the policies may be limited in their coverage. Private disability insurance is available as a supplement to group disability insurance, or it can provide protection for employees with nothing else to rely on.
NOTE: While those working in laborious jobs might be expected to be more vulnerable to injuries that lead to disability, cancer does not care what your job is.Read More