Retirement. It’s a time some Americans look forward to from the beginning of their career and a time some Americans dread with overwhelming anxiety. Regardless of how you feel about it, it’s inevitable, and as such, we need to plan for it. Insurance is an integral part of preparing for retirement. Old age brings with it many questions. “How will I support myself? Will my loved ones be cared for? Will my assets be distributed appropriately?”
There are few things that offer the peace of mind insurance delivers, and there are several types of insurance the aging population should consider as they near the end of their careers:
Life Insurance
The standard. The bedrock of the insurance industry, life insurance covers burial expenses and pays off any debt tied to your estate in the event of death. It ensures your loved ones are not stuck with potentially crippling debts as they cope with your tragic demise.
It also offers your spouse the ability to retain their standard of living. Instead of having to draw down the savings you leave behind, a life insurance policy can cover basic expenses until your spouse is ready to retire and make good use of the funds you have both pooled together over the years.
Disability Insurance
Although life insurance is the most obvious, disability insurance is equally as significant. In fact, it is said that a third of workers will experience an incapacitating injury that qualifies for disability insurance over the course of their career, but far less than actually have disability insurance.
If you are injured, you may very well lose out on income which could severely hinder your savings. With disability insurance, that income is guaranteed. It will pay the mortgage, put food on the table, and retain your standard of living. Getting hurt is hard enough. There is no reason to go broke too.
Long-term Care Insurance
In the event you require long-term care, long-term care insurance is a godsend. To put it into perspective, the U.S. Department of Health and Human Services claims the general cost of a nursing home stay in a semi-private room is an astounding 6,235 dollars a month, or 72,000 dollars a year. The vast majority of the public cannot afford to withstand that dent to their retirement account.
Long-term care insurance gives you the money you need to pay for home health, assisted living and nursing home care, and still have money put away for safe keeping. In short, it’s essential.
Although insurance is often scoffed at and/or neglected, it plays an enormous role that simply cannot be overstated. It catches us when we fall, and although its benefits may not be tangible, they are lifesaving.
