Insurance Protection

Life Insurance

Life insurance isn’t for those who have died—it’s for those who are left behind. When shopping for life insurance, consider needs such as replacing income so your family can maintain its standard of living, as well as paying for your funeral and estate costs. A general rule is that you may want to seek coverage between five and seven times your gross annual income. As far as the various types of policies go, they can generally be placed into one of two categories: term and permanent.

Term insurance generally provides coverage for a specified period of time and pays out a specified amount of coverage to your beneficiary only if you die within that time period. In a level premium term policy, you pay the same amount of premium from the first day of the policy until the term ends.

A permanent insurance policy, on the other hand, will stay permanently in effect for the rest of your life, as long as premiums are paid.

Long-Term Insurance

As the oldest Baby Boomers begin to wind through their 70s, one of the biggest concerns may not be outliving their income, but outliving good health.

For example, at-home care services average $23 per hour, and assisted living facility costs average $4,000 per month. A private room in a nursing home averages $8,365 per month. Does your retirement income strategy account for this kind of possibility? Would you be prepared for twice that amount as a married couple?

Considering that you could have to reduce your financial means before Medicaid will pay for long-term care, you may want to consider planning ahead for these potential expenses. Otherwise, neither your employer group health insurance nor major medical insurance will cover long-term care.

We can help evaluate your situation and determine if purchasing a long-term care insurance policy may be the right move to help you feel confident in your financial future.

Genworth Cost of Care Survey 2018