Few people want to think about the need for insurance. The leading benefit of insurance is the peace of mind that it brings to you. Consider these four types of insurance that every aging adult should have on their policy in order to protect their family’s financial well-being.
Long-Term Care Insurance
Long-term care insurance provides coverage in the event that the covered person needs to go to a long-term care facility. Although Medicare and Medicaid pay for long-term care nursing facilities, they do not cover the full cost of that type of 24 hours per day, 7 days per week medical care. Long-term care insurance pays the remainder of the cost and could allow a senior to be placed in a better facility without bankrupting the family.
Life insurance could help to pay for your funeral expenses so that there is no burden on your family. A life insurance policy could also pay out an amount to your family to help them with living expenses. For example, if your grandchildren are on your life insurance policy beneficiaries, professionals, like David Helfand PA, know that their payments could then go into a college savings account or into a trust fund that they could access as adults.
Aging adults who are still working might consider disability insurance. This type of insurance helps to augment your wages if you are temporarily disabled. There is short-term or long-term disability insurance. For short-term, this covers problems such as a broken leg that requires you to take a month or two off work. Long-term disability would cover you for a life-long disability, such as a stroke.
If you still have a mortgage on your home, consider a mortgage insurance policy. This type of insurance would pay off your mortgage if you die before the loan has been repaid. A mortgage insurance policy might be a good idea if you have a stay-at-home spouse or dependent children who would want to live in the family home but might not have the income to pay the mortgage payments each month.
Some of these insurance policies will have an application requirement. You might also need to have a medical exam in order to qualify for the policy or the payout. Be sure to stay on top of the payments for your insurance premiums. If you miss a monthly payment, it is possible that the insurance company could cancel your policy. Getting a new policy could be difficult if your coverage drops.
Author’s Information: Bio: Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on Twitter and Facebook.