No one plans to become a burden to others. However there are circumstances that happen out of the blue that can put any one of us at the mercy and kindness of others at a moment’s notice.
Critical illness, disability and death can render us incapable of working and living productively. As a result, our financial obligations may fall to family members or worse, go unpaid.
Mortgage payments, auto payments and credit cards are just a few of the most common debts that suffer when someone becomes ill or disabled. It is important to protect yourself from this possibility with insurance policy coverage that would deal with your payments or the outstanding balance on any mortgage or other loan.
Review Your Insurance Portfolio
It may be time to take a look at your insurance portfolio to make sure you have appropriate insurance coverage that limits your risk should you become critically ill, disabled or be faced with imminent death. Perhaps you’ll discover that all you need is to make some minor adjustments to your current insurance portfolio.
One thing is certain, when you have the coverage you need, no matter what happens you will not suffer the added stress of worrying about how your obligations will be covered. You will have planned to never become a financial burden to anyone else.
A Variety of Coverage Options
Available coverage options include long-term care insurance, critical illness and disability insurance. With long-term life insurance, for instance, you enjoy reduced risks with multiple advantages. This is the type of coverage you’ll want to cover your mortgage or other loan. While the amount of the insurance coverage is determined by the loan, the coverage does not decrease as the loan is reimbursed. Likewise the coverage does not stop when the mortgage is paid off. In the event of death, the insurance money is paid directly to the designated beneficiary who may use it in any way they wish. They could pay off an existing loan, pay estate taxes or make an investment.
If you do not have group insurance coverage through your employer, if you’re self-employed or in business with partners, you may want to have a disability insurance policy in place in the event cannot work due to an accident or illness. A disability policy can be added to a term policy for more in-depth protection. The advantages of having a disability policy include receiving a non-taxable benefit every month that you’re unable to work and that you can spend the benefit however you want.
Critical illness coverage gives you the time to focus on getting better without the financial stress that a serious illness like cancer or stroke can incur. Some of the advantages of this coverage are that you would receive a set benefit amount while alive, following the diagnosis of a covered critical illness or an operation. The non-taxable benefit may be used in any way that you want. Also other options can be added such as provision for a premium refund at maturity if no benefit was paid or if death occurred as the result of a cause other than critical illness.
Review your insurance options and make plans to be anything but a burden to those you love. You may never need the coverage though the peace you experience from having it could be the one thing that keeps you vibrant and productive right to the end.