Not having proper insurance in place is one of the biggest financial risks you can take. And the younger and healthier you are, the cheaper two types of insurance will be: long-term care and life.
Long-Term Care Insurance
Long-term care insurance helps cover costs associated with care over an extended period of time. There is a 70% chance that someone who turns 65 today will need long-term care support down the road. But the misconception that long-term care insurance is just for those entering assisted living, memory care, or skilled care facilities often prevents older adults from getting it.
Think of long-term care insurance as part of your retirement plan. It’s about preserving the assets you’ve worked hard for your whole life. It can also help alleviate the financial burden of care on your spouse or children.
Long-term care insurance can be applied to at-home care, special care facilities, nursing homes assisted living communities, and more. The cost varies depending on your unique needs and location, but the probability of getting approved for it decreases the longer you wait. Learn more about the ways to pay for long-term care insurance.
If long-term care insurance is not a realistic financial option for you, that’s okay! A Medicaid plan might be a better fit for you.
Life Insurance
You know what your health is like today, but you don’t know what it will be like in the future. Life insurance helps you — and your loved ones — be prepared for whatever happens.
The perception that life insurance is expensive often keeps people from getting it. But life insurance is not as expensive as you may think. It typically costs less than a phone bill or what you spend on coffee each month. And when it comes to life insurance, having something is better than having nothing.
All life insurance policies fall under two categories: term and permanent. Term insurance is typically less expensive, but has an expiration date. Permanent life insurance provides lifetime coverage. This article breaks down term and permanent life insurance and compares policy types within each category.
What kind of life insurance is right for you? That depends on your budget, beneficiaries, duration of need, and other factors. If you are considering term life insurance, you may also want to have the choice to convert it into a permanent policy down the road.
Where Do I Get Insurance?
A licensed insurance or financial professional can help you understand which life insurance plan best fits your individual needs. If you’re not sure where to start, ask trusted friends or family for recommendations. Do your due diligence: ask for quotes and research policies before signing on the dotted line.
Build your community:Your professional advisors — insurance agents, lawyers, financial advisors, accountants, etc. — are an extension of your community. Make sure you feel comfortable with who you work with and that they advocate for you.
Avoiding Scams
Sadly, financial and insurance scams and fraud cost older adults $3 billion every year. These resources can help you know what to look for and how to protect yourself.
TroveStreet is Here to Help
Take advantage of our free TroveStreet Planning Tool, which you can access directly in your dashboard or download as a PDF. Want someone to walk you through it? Sign up for our Aging Navigation & Plan Creation package and a TroveStreet navigator will be by your side through the process.
