Life Insurance, Disability Protection, Long Term Care
& Medical Insurance
What would happen to your goals and your family's financial security if you were to die or were disabled and no longer able to work? With adequate insurance planning, major lifestyle changes due to a lack of income should not be necessary.
With life insurance planning, the first question is always, "How much is enough?" Whether you need life insurance at all and, if you do, the best amount of insurance coverage to have depend on your particular circumstances. Many people start thinking about life insurance when they marry and have children. But, even if you aren't married, you may have someone else, such as a parent or sibling, who depends on you for financial support. The longer your dependents will need support, the greater your need for coverage.
If you discover you need additional coverage and you are still relatively young, term life insurance is generally the least expensive way to go because it provides "pure coverage"; you build no cash value in the policy. (Note that the cost of term insurance goes up as you grow older.) Term insurance provides protection for a specific number of years, with the death benefit paid to your beneficiaries if you die during the policy's term. When the term ends, so does your coverage, unless you renew the policy.
Cash-value life insurance, such as whole life, universal life, and variable life policies, provides protection over your entire life. For younger people, cash-value insurance is more expensive than term. but the premiums generally are fixed, so as the years go by, it can become less expensive. cash values and interest accumulate in these policies tax deferred, and you can borrow from the cash value.
Like life insurance planning, disability insurance planning is based on your particular needs, circumstances, and resources. Completing the disability portion of our worksheet on a disability calculator, should help you determine if you need additional coverage to protect your family should you become temporarily or permanently disabled. In addition, you may want to include long-term care insurance in your financial plan to help preserve your assets for your family in the event you suffer a prolonged illness.
But disability and long-term care insurance aren't the only aspects of disability planning. You also need to think about who will manage your assets if you become incapacitated and can no longer handle this responsibility yourself. A power of attorney may be a good solution. With a power of attorney, you choose someone to make financial decisions for you if you are unable to do so yourself.
Long Term Care
Long term care is something you may need if you can no longer perform everyday tasks by yourself. For example, there may come a time when you need help getting dressed, eating or bathing. It also includes the kind of care you would need if you had a severe cognitive impairment like Alzheimer's disease. You can receive this care in a variety of settings, including your home, an assisted living facility or a nursing home.
Why Would I Ever Need LTC?
The need for long term care usually arises from age or chronic illness, injury or disability. In fact, approximately 60% of us who reach age 65 will need long term care at some time in our lives. But it's not just a retiree's issue.
It Can Happen at Any Age. Many people don't realize that the need for long term care can strike at any time. Statistics show that 40% of people receiving long term care services are working age adults, between the ages of 18 and 64. Would you be prepared for long term care, if you suddenly required it?
What It Is and What It Isn't
What It Is:
Long term care is the type of care that you may need if you can no longer perform"activities of daily living" by yourself, such as eating, bathing or getting dressed. It also includes the kind of care you would need if you had a severe cognitive impairment like Alzheimer's disease. Care can be received in a variety of settings, including your own home, assisted living facilities, adult day care centers or hospice facilities.
Long term care can be covered completely or in part by long term care insurance. Most plans let you choose the amount of the coverage you want, as well as how and where you want to use your benefits. A comprehensive plan includes benefits for all levels of care, custodial to skilled.
What It Isn't:
Long term care isn't the type of care that you receive in the hospital or your doctor's office. It isn't the medical care you need to get well from a sickness or an injury. It isn't short-term rehabilitation from an accident or recuperation from surgery. Long term care is not always administered in a nursing home. In fact, more than 80% of all people receiving long term care assistance are not in nursing homes.
What Does LTC Cost?
Nursing home care is expensive: today, the national average cost of a semi-private room in a nursing home is $52,000 annually. Depending upon where you live and the type of facility that you would prefer, costs can be significantly higher. Home health care is expensive, too: the national average annual cost of home health care is well over $20,000 (that's $18/hour, five hours per day, five days a week for a home health aide). This figure is expected to climb to $68,000 by 2030. Are these costs that you could afford tomorrow?
And what if you need long term care in the future? Nursing home costs have been going up about 5% a year. If that continues for another 30 years, the cost of nursing home care (for a semi-private room) in 2032 is expected to be $190,600 a year. As you plan for the future, you should consider whether this is an expense you will be able to afford.
Cost Beyond Means to Pay
If you, your spouse or family member were to need long term care, the cost could deplete more than your own hard-earned assets. Without long term care insurance, the financial burden of caring for you could fall on your family.
You're Not Covered
You may think that long term care services are covered by your health plan or disability insurance. That's usually not the case. Health insurance is designed to cover medical care for illnesses or injuries, such as cancer, a broken arm, or a stroke. For example, it will pay the hospital bills you incur for a stroke. It won't pay for long term assistance with activities of daily living, such as dressing or using the bathroom. As for disability insurance, it is designed to replace the income you lose if you're unable to work, due to accident or injury. Disability benefits will help you pay your mortgage or your normal household expenses. Disability insurance provides no additional benefits for long term care.
Who Pays for Long Term Care?
Ultimately, you do. Private health insurance may pay for some short-tem care in lieu of hospitalization. But it only covers nursing home services for a short recovery period. Please click on the HERE to find out rough estimate of premium at your age.
What About Medicaid and Medicare?
Medicaid is designed to protect those with minimal assets. To qualify, many people "spend down" nearly all of their assets. In fact, because spouses have a legal responsibility to support each other, both must spend down their assets before an ill spouse may qualify for Medicaid benefits. Medicare only pays limited amounts for skilled care following a hospital stay. It does not cover purely custodial care, the type that's required by most people in nursing homes.
Medical & Health Insurance
Whether you own a business or work for company which do not provide adequate medical & health coverage, subscribing to a medical & health insurance is very important for anyone. Obtaining medical & health insurance is one of the best future investment because it will protect you and your family from facing huge medical bills in the case of injury, accident, drug prescription or treatment for illness.
We emphasize adequate analysis to determine your needs and only then provide solutions for your consideration. We have capability of accessing hundreds of different Medical & Health insurance providers and plans. Do not hesitate to contact us for help.
Even the best health insurance plans can leave you vulnerable to escalating costs and lost income. That's why we offer supplemental insurance to complement your need. Our policies provide direct-to-the-policyholder cash benefits when you need them most-in the event of an illness or an accident. Some of the insurance we offer are:
Dental Plan provides basic, preventive, and
major dental benefits to covered individuals.
Eligible treatments are listed in the policy by
American Dental Association(ADA) code.
• Cancer Protector Plan
Radiation and Chemotherapy
National Cancer Institute (NCI) Evaluation/Consultation
• Accident Indemnity Plan
Accident Hospital Confinement
Accidental Death and -Dismemberment
Vision Now focuses on total eye health since it provides unique benefit features that go beyond traditional eye exams and materials. While these conventional services are covered, this innovative policy also pays for specific eye diseases and disorders, surgeries, correction procedures, and permanent visual impairment conditions. Available through payroll deduction, Vision Now is a great addition to any benefits program since it addresses a large and growing need.
As we have described all the above, we provide all of your insurance need! Life, Disability, Long term care, Medical, and Health insurance! Please contact us right away to protect your future!
© 2014 Michael J. Porro & Company