There are multiple personal insurance coverages that offer us protections. These can include health insurance, dental insurance, final expense, long and short term care insurance, and many others that can help protect us and save us money.
Long-term care (LTC) insurance is a type of coverage that helps pay for services and support for people who can no longer perform daily activities due to an illness, disability, or cognitive impairment. This can include services like bathing, dressing, eating, and more.
LTC insurance typically covers a variety of services, including care in a nursing home, an assisted living facility, or even in your own home with a home health aide.
Many policies offer an inflation protection feature, which is crucial. Since you may not need care for many years, this feature helps ensure that the policy's daily benefit keeps pace with the rising costs of care.
While many policies cover conditions like Alzheimer's and other forms of dementia, you typically need to purchase the policy before being diagnosed.
Disability insurance replaces a portion of your income if you are unable to work due to a qualifying illness or injury.
The main difference is the length of the benefit period. Short-term disability (STD) typically provides benefits for a few weeks to a year, while long-term disability (LTD) can provide benefits for a specific number of years or until you reach retirement age.
The elimination period is the waiting period between the time you become disabled and the time you can start receiving benefits. A longer elimination period usually results in a lower premium.
Most financial experts recommend having enough disability insurance to replace 60-80% of your current income to cover living expenses, debt payments, and other financial obligations.
The premium is the monthly or annual fee you pay to the insurance company to keep your health coverage active.
A deductible is the amount you must pay out of your own pocket for medical services before your insurance company begins to pay.
A copay is a fixed amount you pay for a specific service, like a doctor's visit or prescription. Coinsurance is a percentage of the cost you pay for a service after your deductible has been met.
An in-network provider has a contract with your insurance company to provide services at a discounted rate. Out-of-network providers do not, and seeing them will typically result in higher costs for you.
Short-term insurance can refer to various types of temporary coverage, such as a short-term health plan or a short-term disability policy, designed to provide coverage for a limited period.
A short-term health plan is a temporary medical plan that can be used to fill gaps in coverage, such as when you are between jobs. They are not regulated by the Affordable Care Act and typically have lower premiums but may offer less comprehensive coverage and often exclude pre-existing conditions.
Dental insurance typically covers a percentage of costs for dental procedures, often following a "100-80-50" model:
Orthodontic coverage for braces is often not included in standard dental plans but may be offered as an add-on or in some group plans.
Final expense insurance, also known as burial or funeral insurance, is a type of whole life insurance with a small death benefit, typically ranging from a few thousand to $25,000. It is designed to cover end-of-life expenses.
The death benefit can be used by beneficiaries to cover funeral costs, outstanding medical bills, credit card debt, or other minor expenses.
Many final expense policies are "guaranteed issue," which means they do not require a medical exam or detailed health questions for approval. This makes them a popular choice for older individuals or those with significant health issues.
No. Final expense is a type of whole life insurance, meaning it provides coverage for your entire life and has a guaranteed death benefit as long as premiums are paid. Term life insurance provides a larger death benefit but only for a specific period of time and expires at the end of the term.
