Recently, the writer of a website that helps businesses comply with disability insurance requirements, sent me a list of questions she is frequently asked. She thought that my blog might be a better site for answering those questions, and she even sent me links to articles which she believed would help answer the questions. After reading her list, I agreed these are important issues which people need to understand. As a result, I thought I would briefly give my readers an overview of different types of insurance they want to consider, whether they are near retirement or not.
I also highly recommend that you discuss different types of policy with your insurance agent, get quotes, and decide which ones are within your budget and are important to you.
You may find it useful to read a little about the insurance you are considering, from an unbiased source, before you talk to your agent. A good choice is "Insurance for Dummies." (Ad) This inexpensive and easy-to-read book covers all kinds of insurance, including auto, homeowners and renter's insurance, as well as the policies listed below. It could help you avoid costly mistakes and the purchase of unnecessary insurance.
Common questions about different type of insurance
If you are like many people in my retirement community, you are bombarded with ads for a variety of types of insurance, including small insurance policies to cover the cost of your burial, accidental death insurance (which only covers you if you die of an accident, not as a result of an illness), and regular life insurance, which covers you regardless of how you die and allows you to use the proceeds for whatever reason your heirs wish, including paying for your burial. What you need depends on a variety of circumstances. If you have no heirs, for example, you may just want burial or funeral insurance (or you may want to skip the insurance and pre-plan your funeral).
Some people, especially those who are young, single and on a tight budget, may believe they do not need to buy health insurance. They may assume that they are so healthy, they are unlikely to get sick. They do not expect to be injured, either. As a result, they may neglect to get health insurance. However, there are many programs which can help low income people pay for their health insurance and, by having insurance, they could save a great deal of money in the future if they do become injured or get ill. None of us know when we may be unexpectedly hospitalized, and no one wants their credit ruined by enormous, unaffordable medical bills. The two articles below will help you understand the advantages of having health insurance.
A lot of people assume that if they have health insurance or Medicare, they will be covered in the event they need to move to a retirement home or into an assisted living facility. This is NOT true. While some health insurance policies and Medicare will pay for a short stay in a medically necessary skilled nursing or rehab facility, none of them will pay for someone to live permanently in a retirement home, or assisted living facility. You can learn more about this in the article below. In addition, be sure you read the answer to the next question.
The answer to whether or not you need Long-Term Care Insurance is, "It depends." That is not a very specific answer, but everyone's situation is different. Here are some of the things you need to consider:
A few years ago, one of our daughters, a school teacher who was in her 30s at the time, developed a health issue which required her to stay home from work for several months. She quickly used up her vacation time and sick leave. Fortunately, only the year before she had purchased disability insurance. It enabled her to continue to get almost her full paycheck, while she recuperated. She was so thankful she had purchased that policy. Like many young adults, it never occurred to her that disability insurance was not already included in the deductions taken from her paycheck. It also had not occurred to her that anything might happen which would require her to miss work for any length of time. She was glad she went ahead and added this insurance, despite not thinking she would ever use it.
What types of insurance do you need? As you probably already realize, virtually everyone should have auto, health and either renters or homeowners insurance. But what about other types of policies? The need varies from person to person. Take a little time to explore your options, learn as much as you can about insurance, and take action to make sure you utilize insurance as part of your plan to meet the future needs of you and your family.
If you are interested in learning more about financial planning for retirement, where to retire, Social Security, Medicare, common medical issues as you age, and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.
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