Keep Your Family ProtectedOnce you start a family, you’ll do whatever it takes to keep them protected. In the world of insurance, there’s no better safeguard than the trifecta of life, disability and long-term care insurance. In this month’s blog, we’ll discuss the right policies to have in place to keep your family protected.

Disability Insurance

Did you know that, according to the Social Security Administration, over 25 percent of today’s 20-year-olds will be disabled before retirement? Disability insurance is one of the most important types of coverage, especially for younger families, and will last until you reach retirement age. Your ability to work is the greatest asset you have to provide for your loved ones, but if you become unable to work, this could have disastrous ramifications.

Disability insurance will provide roughly 60 percent of your former earnings, but the amount will vary depending on your policy. You should be able to apply for disability insurance through your employer, but if you are self-employed, you’ll have to take out your own policy.

Life Insurance

Here’s another fun fact: findings show that over 40 percent of the American population doesn’t have life insurance. Life insurance is a policy that will provide income for your family upon your passing. This form of coverage is essential if you have young kids or a spouse that’s not working.

Life insurance is offered in two forms: term and permanent. Term life insurance is the less expensive option, preferred by young families who want some form of coverage but don’t want to spend on a policy that will last a lifetime. Like its name, you can purchase the plan for a certain time span that works best for your family, and after that, it expires.

Permanent life insurance provides coverage for your entire lifetime. This option is good for business owners because it delivers cash flow at the time of your death when all your assets may be tied up in the company. This allows your family to cover costs such as estate taxes without having to sell the business.

As we mentioned before, you can most likely receive coverage through your place of employment, but that might not be as much as you need. We recommend selecting a plan or plans that will replace up to 10 times your annual income.

Long-term Care Insurance

True or false, about 70 percent of people over the age of 65 can expect to use some form of long-term care during their lives? True! This type of insurance is necessary if you need daily attention over a long period of time, for issues such as chronic illnesses or disabilities. Long-term care kicks in as soon as you need it since your doctor will verify your need for aid and reach out to your insurance company.

Health insurance differs because it will cover hospital and doctor bills, while long-term care handles expenses associated with nursing homes, assisted living, adult day care services and home care. These additional care options can be expensive, which makes this form of coverage that much more important. As you get older, you’ll become more expensive to insure, so the best strategy is to start looking at options before you need them.

This was just a brief overview of the policies available. To get the best possible policies for your family, continue educating yourself on policy options and ask questions as they come up. To learn more about your current family protection plan and how you can improve it, call us today.

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