Protecting yourself and loved ones against rising medical costs
As the average life expectancy increases, so does the cost of medical care. Though the majority of Americans have at least some health insurance, few consider that they could suddenly become ill or disabled. But in fact, the U.S. Census Bureau estimates, there are 54 million disabled Americans. Spending one’s final years in a nursing home, or under home care, is also not something we like to think about, yet it is very much a reality. The Centers for Medicare and Medicaid Services report that 60 percent of Americans over age 65 require long-term care. Dealing with these realties of disability from unexpected illness and the possible need for long-term care are best dealt with sooner than later.
Investing in disability and long-term care insurance coverage can help protect you and your family in these times of need. Most of us, however, don’t want insurance agents and brokers poking their noses into our medical histories. Why disclose a health condition or family medical records and risk raising your premiums? No-test insurance is an excellent choice for you.
What is no-test insurance?No-test insurance is coverage that does not require a medical exam or health questions. Providers of no-test insurance sometimes guarantee coverage depending on the policy type you seek. Many even let you apply online from the privacy of your home. If you’ve been turned down by traditional insurance providers, no-test insurance could be the solution.
Why you should have disability insurance?Disability insurance helps protect you by replacing part or most of your income if you’ve been disabled and cannot work. If you have health insurance, your medical costs should be covered if you’re injured or sick. But were an unexpected tragedy to occur; are you and your family prepared for the loss of your paycheck? If you rely on your salary for daily living expenses like rent and food, you need to seriously look at the benefits of having disability coverage.
There are two types of disability policies: short-term and long-term. Short-term coverage usually substitutes 100% of lost salary for up to six months of missed work. The clock starts after you have used all your sick leave. But if you’re still unable to work after the six months, payments will drop to about 60% of your wages.
Long-term disability coverage, on the other hand, is by far the most important type of insurance you can buy. Policies vary, but usually your coverage will replace 50-70% of your salary. And ask your employer if you’re allowed to purchase additional insurance, which could raise payments to as much as 80%.
Is long-term care insurance right for you? If you or a loved one is approaching your mid-fifties or older, you should seriously consider the benefits of long-term care insurance. A growing number of seniors find they are unable to live independently, and the cost of extended nursing home and home health care can be extremely expensive. Long-term care policies usually cover extended care at home, a nursing home, or an assisted-living facility. Like disability, policies can vary. But whichever policy you choose, make sure it says "guaranteed renewable." This prevents the insurance company from dropping your policy.
Final considerationsNo-test insurance is the hassle-free way to get the insurance you and your loved ones need. There are no agent visits, physicals done by doctors, or extensive background checks, so most policies can be purchased online in the privacy of your home. Disability insurance is designed to lessen financial hardships in the face of tragedy, and long-term care insurance extends your quality of life in the midst of rising health care costs. Remember, whatever the policy, be sure to understand all the terms and conditions before making a commitment to buy. Choose wisely and live safely.
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