Insurance Needs for Today’s Baby Boomers and Seniors
If you are taking care of an elderly parent or relative, you may be realizing how difficult it is to keep up with the financial needs for both you and your loved one. Hopefully its also giving you a little insight into the insurance needs of being a senior, and motivating you to get your own financial house in order now before you depend on it.
Here’s a look at several insurance must haves, and what you should be adding to your own portfolio in 2010.
Disability Income Insurance
If you are still working and contributing to the income of a household, what would happen if your income suddenly disappears because of your inability to work? Your income is your biggest asset. Disability insurance pays you up to 60 percent of your salary if you become disabled, and can’t perform at the job you are currently doing.
Long Term Care Insurance
While disability protects your income, what happens if you are in retirement and suddenly have a big increase in your monthly spending for caregiving assistance? Many people assume Medicare will be there for them through all their needs, but that isn’t the case. Medicare is designed for skilled nursing care with specific time limits. Most caregiving needs fall into non-medical care, with help for daily tasks such as eating, bathing, etc. Long term care insurance can help you cover those needs without delving into your retirement income or assets.
Life Insurance
Life insurance comes in two types: term and permanent. Term insurance is set up for a specific term. You pay for a set number of years, and receive coverage for those years. Once your term ends, so does your coverage. Permanent insurance has no ending; as long as you pay you are covered. Life insurance has many purposes for different people. A person working with a family may be insured to protect his or her family if the unthinkable happens. A retired person may use life insurance as a part of their estate planning process.
If you haven’t talked with a financial planner about insurance options, make an appointment to discuss your needs. Make it your goal to get your financial house in order in 2010.
