Why insurance is important?*
Insurance is designed to transfer losses to another party, in particular to protect individuals, and companies from the unforeseen. The insurance companies design policies with a lot of different benefits, riders, and exclusions for the benefit of the insured (which means you) or in the case of a company to protect the company from extreme losses. They also must make sure there are reserves available to assist their insured with the funds available as times change.
The advances in healthcare the last 25 years, have made huge improvements on the quality and duration of one’s life. This is a benefit because our loved ones are with us longer and a serious diagnosis doesn’t have to be a death sentence, also giving the patient a longer quality of life. With these advances, the cost of care has grown exponentially, in order to protect yourself from the high cost of quality care, insurance is there with you to protect you and to give you piece of mind.
There are several types of coverage available to protect you and loved ones from the cradle to the grave with care, quality of life, and leave assets when the time comes. Medical Bills, are the largest reason for bankruptcies in the U.S. Therefore having coverage available is one of the best things you can do to protect loved ones from financial ruin. The following policies help protect oneself and give leverage to make sure you can have the right kind of care.
Health insurance is important due to the need to provide yearly checkups to foresee health issues and to protect from catastrophic loses. Knowing the right plan, that gives you the right providers, and the correct price to balance all of these together can be confusing. Although, Affordable Care (Obamacare) has made options available to people that were previously uninsurable, picking from the myriad of plans available can be confusing and overwhelming. Not picking the right coverage for your needs can be devastating to everyone in the family.
Medigap coverage or Advantage plans are designed for over 65 population, and for the ones who qualified for SSDI (Social Security Disability Insurance). This coverage is important for everyone in the family as well, since this is what pickups the parts that Medicare doesn’t cover. Again, depending on one’s needs, there are a lot of options to choose from and selecting the right plan, right providers, and right plan can prevent undue hardship later.
Disability Insurance is available as an individual policy that an insured can own, or a group plan. Group plans, generally are not portable. A lot of people mistakenly believe that if they get sick that Social Security will be there for them prior to age 65, and although it can be. The process can take a long time (up to 2 years or more) and in the meantime, the day to day bills have to be paid. Disability insurance, paycheck protection, can come with a lot of benefits and the cost depending on what policy you build with your agent can be very affordable, certainly worth the protection to make sure the funds are available to keep savings intact and a roof over one’s head.
Dental Care provides routine cleaning of teeth and keeps ones overall health better as well. Improper dental care can cause pain and most policies have to be purchased in advance to the need. Just like property insurance, if you don’t have coverage at the time of the catastrophe there is a wait for benefits to kick in so, purchase before you need coverage to get the right policy for your needs.
Long Term Care Insurance
Long Term Care this policy is available to keep a loved one at home with you, if needed or provide nursing home care. The benefits last longer if able to utilize in home care versus nursing home care. Medicare does not pay for nursing home care, and a quality plan can also keep a family from spending through their assets to help the family member who needs care. Just like life insurance, the earlier you purchase it the better, plus with the lifespans increasing all the time having an option is always good.
Life Insurance is not just to purchase burial expenses, although it can certainly help when the time comes, but it can be a legacy for charity, helpmate once the income needed from a 2-family earning home is gone, to keep the kids afloat and make sure they can go to college or trade school, pay the mortgage off and many more. Generally, needs for life insurance decrease as family ages, but the earlier you purchase coverage the better the cost. Speaking to an agent can help make sure you are getting the best plans for your needs.
*this is just a brief overview and not all inclusive