The basic three: Life, Health, and Disability Insurance

Death, illness, and disability can bring financial, as well as emotional, stress. Although the thoughts of losing a loved one, of becoming sick, or of losing the ability to earn a living are not pleasant subjects to consider, they may drastically change your life at any time. Life, health, and disability income insurance policies can help you prepare for these unfortu­nate situations should they arise.

Life Insurance

The death of a loved one is an un­fortunate reality everyone must face at one time or another. If that person is a significant wage earner for the family, you may be faced with some surprising financial challenges. All expenses will continue, despite the sudden and very noticeable loss of income. Funeral costs, mortgages, other outstanding debts, and daily expenditures add to the burden. Life insurance can be essential to help your family meet these costs and main­tain your current lifestyle.

Some life insurance policies offer not only protection against unexpected death, but also a valuable source of emergency money. If you purchase cash value life insurance, you may borrow funds from your policy to help cover emergencies, enhance your retirement income, or pay for any other expenses. However, if you want coverage for a set time period and consider protection against death its sole purpose, then term life insurance may better suit your needs.

Health Insurance

Staying healthy is a valuable part of ensuring your family’s well-being. To make sure your family can afford any necessary medical attention, a health in­surance policy is crucial. Currently, there are four major types of health insur­ance: insur­ance: 1) fee-for-service, also known as a conventional policy; 2) health maintenance organizations (HMOs); 3) preferred provider organizations (PPOs); and 4) point-of-service (POS) policies. Each plan offers its own benefits and limitations, so be sure to carefully evaluate what works best for your family.

Disability Income Insurance

According to the Insurance Informa­tion Institute (2007), the probability of the average worker at age 40 becom­ing disabled before age 65 is approxi­mately 21%, while the likelihood that one would die before age 65 is 14%. Yet, disability income insurance is an often overlooked insurance policy. While people generally recognize their need for life, homeowners, and auto insur­ance, they often forget to insure their paychecks. If, due to a severe illness or injury, you are unable to work for an extended period of time, a disability in­come insurance policy provides another source of income to help cover your financial obligations.

There are a variety of disability in­come insurance policies; however, they tend to vary in their coverage options. For instance, you most likely will want a policy that is non-cancelable and one that covers both accidents and illnesses. It is also important to check the policy’s definition of disability. Some may provide benefits only to those who are totally disabled and unable to work in any field.

To avoid devastating gaps in your insurance plan, please make sure you have adequate coverage. We can help you evaluate your family’s circumstances in each of these areas. Just give us a call at 215-757-0816.