Insurance
The Role of Insurance in Your Financial Plan 
If hard work, saving, and investing are the strength behind your financial plan, then insurance — in its many forms — is the glue that holds your financial plan together. There are different types of insurance, and each have their own variations, but they all have a similar purpose — they protect you and your loved ones in different ways against the cost of accidents, illness, disability, and death.
What Are Your Insurance Needs?
The insurance decisions you make should be based on your family, age, and economic situation. There are many forms of insurance and, unfortunately, no one-size-fits-all policy.
Long-Term Care Insurance
When long-term care is needed, it doesn't just affect an individual— it affects a family, which is why it is essential to help protect your plans with a long-term care funding solution. Developing a proactive strategy may make all the difference to you and your loved ones.
A proactive long-term care strategy seeks to:
- Provide peace of mind-knowing you have a strong, proactive plan customized for your needs
- Deliver care coverage and legacy protection
- Prevent your family from reactively guessing at your care preferences, or needing to become your caregiver
- Safeguard your retirement dollars from the rising costs of care
The facts about long-term care
Even though long-term care is in the news, it could be a perplexing issue to many Americans. It is often confused with healthcare, but there is an important distinction between the two.
According to the U.S. Senate Special Committee on Aging, long-term care differs from other types of healthcare. In many cases, its goal is not to cure an illness but to enable a person to function, so they may live independently. Long-term care consists of medical, personal, social and specialized housing services in support of those who have lost some ability to care for themselves due to a disability or chronic illness. Often long-term care involves assistance with some of the most basic, yet intimate, aspects of daily living, such as getting dressed, bathing and toileting. 4
The myths that create a false sense of security
One prevailing issue is that many Americans don’t seek professional advice about planning, because they have misconceptions about long-term care. Consequently, these individuals may eventually confront the realities of the risks when a long-term care situation suddenly arises in their family. At that point, they may only have time to react, rather than respond, to a logical plan of action. So, it’s important to recognize the myths that may lead you to complacency.
Click Here for Our Long-Term Care Insurance Brochure
Click Here for a client-friendly tool that introduces the topic of extended care planning
Life Insurance
How will your family or loved ones manage financially if you die? Life insurance is a way to protect your loved ones financially after you die and your income stops. At the very least, life insurance can help pay for the costs of funeral and burial services, estate administration, outstanding debts, estate taxes, and the uninsured expenses of a final illness.
You should probably consider buying life insurance if any one of the following is true:
- You are married and your spouse depends on your income
- You have children
- You have an aging parent or disabled relative who depends on you for support
- Your retirement savings and pension won't be enough for your spouse to live on
- You have a large estate and expect to owe estate taxes
- You own a business, especially if you have a partner
- You have a substantial joint financial obligation such as a personal loan for which another person would be legally responsible after your death
Disability Income Insurance
Everyone who works and earns a living probably needs disability insurance. If you suddenly became disabled and were unable to work, could you still meet your financial obligations? Could you get by without having to use savings or borrow from relatives? If not, you'll want to make sure that you have adequate disability insurance coverage that is designed to pay your expenses while you are disabled and cannot work.
A long-term disability policy is activated, replacing a portion of your lost income, when you are unable to work for an extended period. Some, but certainly not all, employers cover their employees with some form of company-paid disability income insurance. Typically, such coverage is only partial and/or short-term in nature. Thus, many people seek to purchase an individual disability income insurance policy. If you're buying, try to get a noncancelable policy with benefits for life, or at least to age 65, and as much salary coverage as you can afford. However, keep in mind that the duration of coverage may be limited because of your occupation.
Insurers will usually cover up to 65% of your salary. Generally, you should have total coverage equal to two thirds of your current pretax income. If your company provides disability insurance, check to see whether it's enough for your needs. Group disability insurance policies may be capped at six months and provide benefits that won't cover your expenses.
Resources:
Am I Prepared for Long-Term Care Expenses?
What Every Woman Should Know About Long-Term Care
Click Here to view the cost of care averages for the country- Code: LINCOLN
What Are the Basic Types of Life Insurance?
Do I Need Disability Income Insurance?
4Family Caregiver Alliance, “Selected Long-Term Care Statistics,” FCA, https://www.caregiver.org/print/45, January 31, 2015.
5Department of Health & Human Services, “Long-Term Services and Support for Older Americans: Risks and Financing,” ASPE 5 Issue Brief, https://aspe.hhs.gov/sites/default/ files/pdf/106211/ElderLTCrb-rev.pdf, revised February 2015.
6LTCG, “2016 Lincoln Financial Group Cost of Care Survey,” https://www.whatcarecosts.com/lincoln, February 2017. For a 6 printed copy, call 877-ASK-LINCOLN.
7Family Caregiver Alliance, “Women and Caregiving: Facts and Figures,” FCA, https://caregiver.org/women-and-caregiving-facts-and-figures, revised February 2015.
https://blog.disabilitycanhappen.org/how-many-americans-have-disability-coverage/