LIFE INSURANCE
Your need for life insurance
will change with changes in your life. For example, the arrival of children
usually triggers a sharp increase in the amount you will need. As children grow
older and leave the nest, you will probably need less protection. You should
also consider your life insurance policies as you are planning for retirement.
Term life insurance policies
are the least costly. They pay death benefits but have no cash value if you
decide to stop making payments. As the word “term” suggests, these policies are
in effect for a specific period—one year or until you reach a certain age are
common.
Whole life, and other cash value policies combine a long-term
savings and investment product with life insurance, Cancelling these policies
after only a few years can more than double your life insurance costs.
HEALTH INSURANCE
Medical advances have
resulted in greater need for nursing home care and assisted living. Most health
insurance plans and Medicare severely limit or exclude long-term care. You
should consider these costs as you plan for your retirement.
What type of care is covered?
Does the policy cover nursing home care? What
about coverage for assisted-living facilities that provide less client care
than a nursing home? If you want to stay in your home, will it pay for care
provided by visiting nurses and therapists? What about help with food
preparation and housecleaning?
What will the benefit amount be?
Most plans are written to provide a specific Sum
assured benefit per day. The benefit about half the nursing home benefit, but
some policies pays the same for both forms of care. Other plans pay only for
your actual expenses.
What is the benefit period?
It is possible to get a policy with policy
term benefits
.
Is the benefit adjusted for inflation?
No
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