Insurance can protect you against worst-case scenarios, and those become more likely as you age, even if you are in good health.
Many people over the age of 50 look into long-term care and disability insurance. This post may help you determine if you need one or both of these policies.
Long-term care insurance
Long-term care coverage is designed to help those who no longer able to care for themselves.
To qualify, you must be unable to perform at least two of these six daily activities: bathing, dressing, transferring (moving to and from a bed or a chair), toileting, continence and eating. This policy can be used at any age. What this coverage includes may vary, but should at least include coverage for long-term care facilities.
Disability insurance
Disability insurance is based on your income. It pays a percentage of your income, usually around 60 percent, when you are unable to work. Coverage is applicable up until the age of 65. You can use it to supplement social security disability payments or on its own. In most cases, you can take out this policy at any age, but few policies will extend beyond the age of 65.
What’s best for you?
Consider your savings and your age. Do you have enough money put away that if you were unable to work, you could survive until you receive government benefits? If so, you may want to only purchase long-term care coverage. If not, it is advisable that you purchase both.
Because disability coverage usually ends at the age of 65, if you do not have at least a decade before you reach that milestone, it may not make sense to take out a disability policy. If you have a decade or more, it may be one of the most important policies to have.
Your current health and family medical history may also indicate that you are more likely than not to need intensive care when you are older, making a long-term care policy a good investment in your future. The goal is to purchase a policy decades before you are likely to need it, thereby preventing pre-existing conditions from rendering you ineligible.
If you are uncertain about your need for one or both of these policies, speak to an insurance broker to set up a consultation.
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