Your need a regular paycheck to maintain your current way of life. But what happens if you find yourself unable to work? Is your family prepared to face the possible financial hardship that will follow? Experiencing a sudden loss of income due to disability could have a devastating financial and emotional consequences for you and your loved ones. Luckily, disability benefits can help you keep your current lifestyle and prevent you from having to deplete retirement or education savings if you find yourself unable to work as a result of a disabling injury or illness.
Just like all other people, you probably have a number of financial obligations you’re responsible for, such as rent or a mortgage, student loans, retirement savings and everyday expenses. However, accidents happen and if you become disabled, you’ll still need to provide for yourself and your family. Sometimes, not even group long term disability income insurance, which most employers offer, is not enough. Individual disability income (DI) insurance offers additional protection for your income if you become too sick or injured to work for any period of time. It will provide cash to help ease the financial stress on you and your loved ones.
It might be hard to imagine now, but chances are you’ll need some help taking care of yourself later in life. The big question is: How will you pay for it?
Buying long-term care insurance is one way to prepare. Long-term care refers to a host of services that aren’t covered by regular health insurance. This includes assistance with routine daily activities, like bathing, dressing or getting in and out of bed.
A long-term care insurance policy helps cover the costs of that care when you have a chronic medical condition, a disability or a disorder such as Alzheimer’s disease. Most policies will reimburse you for care given in a variety of places, such as:
Considering long-term care costs is an important part of any long-range financial plan, especially in your 50s and beyond. Waiting until you need care to buy coverage is not an option. You won’t qualify for long-term care insurance if you already have a debilitating condition. Most people with long-term care insurance buy it in their mid-50s to mid-60s.
Whether long-term care insurance is the right choice depends on your situation and preferences.
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