Many people start saving early, either for their retirement years or for a home. Unfortunately, unexpected problems in life wreck all their hard work. This is where having the right insurance plan to protect you and your family during financial emergencies is important. Buying the right type and amount of insurance is crucial financial planning, especially if you have a family behind you. There are many Family Health Plans and other Insurance policies available which can easily alleviate the financial risks which may arise in the future. Here are three types of insurance plans mentioned that can protect you and your family for years to come to narrow down your hunt.
Long-Term Care Insurance
This is a type of insurance that provides coverage for elderly care expenses. This insurance plan covers the expenses incurred while offering elderly care to people with chronic illnesses or disabilities that demand daily attention over a long period. There are senior citizen Mediclaim plans available that only cover the doctor bills and hospitalization costs but never provide coverage for expenses incurred in nursing, adult daycare, assisted living, home care, and more. Taking care of older adults at home can be an expensive affair, and with a long term care insurance, the financial burdens can be mitigated.
Long Term Care Insurance benefits can only be availed when the doctor will confirm that you need assistance and elderly care at home for a long period. So, it is the smart move to consider such a plan to protect the family for years to come as you are not sure what may happen in the future.
If you have a beloved family behind you and other dependants at home, then it is worth considering a life insurance plan. A life insurance policy can be purchased for a stipulated period. In return, the insurer guarantees to pay a lump sum to the nominees upon the policyholder’s death within the tenure of the policy. The death benefits offered under life insurance compensate your family’s income and expenses when you are not there. The funds can be used for daily expenses, pay off the mortgage, children’s education, and more. This type of insurance is not required if you and your family don’t have such big obligations in life or have kids who can be independent after retirement.
There are permanent life insurance plans available that last for a lifetime. Under this plan, the insurer pays whenever the policyholder dies. Such plans are very expensive compared to basic life insurance, but it comes with a saving component referred to cash value, which usually builds up with the passing years up to your death.
Long-term Disability Insurance
Different types of illness or injuries may make you jobless without monthly income for years to come. It has been estimated that one out of four people under the age of 20 is likely to become disabled before their retirement years. Unfortunately, only 29% of the population is covered with disability insurance. Some of the employers today tend to offer long-term disability coverage to their employees. If you are amongst those fortunate few, then ensure to check the policy as most of the employer-based disability policies only offer benefits when you are disabled. Moreover, try to supplement the policy into an individual policy. Most of the long term disability insurance plans offer 40 to 60 percent of your base salary.
Though insurances can prove expensive as it takes out a huge chunk of your monthly budget, with the right insurance policy, you can protect your family for years to come by mitigating the financial burdens on them.