Myth: Long-term care insurance is always “use it or lose it”įact: In response to those who are wary of buying insurance they think they may never use, the industry has stepped in to provide more flexible solutions. Individuals may receive coverage for short-term needs - like temporary stays in skilled nursing facilities - but Medicare doesn't cover care for extended lengths of time. Contrary to popular belief, Medicare does not cover all LTC needs. “Even if you’re able to cover basic expenses on six-tenths of your income, you may have to put saving for retirement on hold.” Myth: Medicare covers all long-term care needsįact: More than half of retirees surveyed are not confident in their ability to pay for long-term care (LTC) needs - such as a nursing home or home health care - should they need it during retirement, according to the Employee Benefit Research Institute’s 2020 Retirement Confidence Survey. “Most employer disability-income insurance only covers up to 60% 3 of base salary and does not cover bonuses, which leaves what we call an income gap,” Maki says. “More than 1 in 4 adults will become disabled at some point before they retire.” 2 Myth: Employer disability-income insurance will replace your incomeįact: If you experience a disability during middle age, it may coincide with your peak earning years. “But the reality is that only about 8% of RiverSource disability claims are the result of accidents, while illnesses that result in disabilities are much more common,” 1 Maki says. Myth: Disability-income insurance is primarily for accidental injuriesįact: One common notion is that disability-income insurance covers only accidents. Here are some key insights to help you plan ahead.
Understanding some of the myths and misconceptions around insurance options is a powerful first step in helping to protect your assets from the unexpected. While many people understand the importance of life insurance, other forms of coverage become more significant as you approach retirement and hit your peak earning and saving years. “Insurance can’t prevent the first tragedy, but it can help prevent the second one - the financial impact of an unexpected life event,” says Tom Maki, Vice President at RiverSource Life Insurance Company.
Cash-value life insurance can be tapped for living expenses if structured properly.Advances in life insurance and long-term care policies mean greater flexibility for you.Employer-based disability income insurance may not cover enough of your needs.
0 kommentar(er)
