Wealth Insights is our regular financial planning update, generally refreshed on Tuesdays. Wealth Insights provides perspective on financial planning topics to help as you consider options for navigating your financial life.
You will typically face a higher risk of becoming disabled than of dying. If you are a business owner, formulating a strategy to protect yourself against this risk is important, because if you suffer a disability and can no longer work, both you and your business may suffer financially. How will you earn a living? Will you be able to continue to pay your company’s bills and overhead expenses?
Personal liability coverage is an important way to protect your assets. When you purchase a homeowners insurance policy or an automobile insurance policy, you are purchasing some basic liability coverage as part of that package. If you want additional liability coverage, you may choose to purchase a personal umbrella liability policy. Before buying any liability coverage, however, you should evaluate and compare the various products offered. Because your personal and financial obligations change, you will occasionally want to review your personal liability coverage to ensure that it adequately meets your needs. If it doesn’t, you may need to increase or replace your existing liability coverage.
Long-term care refers to the ongoing services and support needed by people who have chronic health conditions or disabilities. There are three levels of long-term care:
Answer:
As we get older and our health declines, the greater the chances are that we will require home care, nursing home care or other assisted-living arrangements. This care is quite expensive, and Medicare, HMOs and Medigap don’t pay for it. You might want to look into purchasing long-term care insurance (LTCI) to protect your assets in case you need long-term care.
Key person disability insurance can protect your business in the event that a key employee becomes disabled, and as a result, the business suffers a financial loss. A key person disability policy will pay short-term benefits to the business until the key employee recovers from their disability, or until they can be replaced.