General Info

When you are living as a single person, you do not need life insurance; however, disability insurance should be considered. Since you are single, you do not have anyone to rely on in case of a accident; therefore, at least six months worth of money should be saved up for an emergency fund. On the other hand when starting a family, life insurance is a good place to start along with disability insurance. You should also start saving money also in case of a emergency. Also, look into your companies 401k retirement plans. You should look into these in as early as possible. When retiring your need for insurance for health goes up because age goes up which brings health problems.

Life Insurance

These are some Life events you need to consider when evaluating and re-evaluating life insurance needs: married with kids, married, single parent, stay at home parent, parent with grown kids, being a small business owner, being single, being retired.

Married with kids: Your family will most likely not be able to support themselves with only one income. Bills, school, and food still needs to be paid for.

Married: If you die, would your significant other be able to live off of just their salary. Also, if kids are in your future, get life insurance now because some companies will not give to a pregnant woman.

Single parent: If a single parent, very good life insurance is needed to support the child/children.

Stay at home parent: without a salary, many things get done around the house because of the parent, and if would be difficult for a family to function without this help.

Life Insurance

Life Insurance

Parents with grown kids: Even with grown children, the significant other needs the help of someone else.

Being a small business owner: Life insurance is very important if you are a small business owner. Having this will help the new owner take over the company and make sure everything runs smoothly.

Being single: Being single, life insurance is not necessary because in most situations no one is depending on you; however, in the act of taking care of family or disabled siblings, life insurance is good to have.

Being retired: life insurance helps with funeral costs and other taxes after you die, this way your family won't have to deal with all these extra costs.

Disability Insurance

Anyone who has a career job needs to have disability insurance because if you are injured and out of work, there needs to be some way for you to be able to provide for yourself (and your family). Also if you have debt and get injured you have no income therefore the debt will not get paid off. Five examples of life changes that cause you to re-evaluate your disability insurance are getting married, having kids, buying a house, fatal sickness, being in debt, etc.

Disability Insurance

Types of disability insurance:

Workers’ Compensation: If you are employed and you suffer a illness or injury that is work related then this insurance can replace some of your salary. It usually pays about 2/3 of your income.

State Disability Insurance Programs: California, Hawaii, New Jersey, New York and Rhode Island, and Puerto Rico will provide short term disability coverage (money used from payroll deduction). This is a source of short-term income replacement.

Social Security: A federal government administration disability insurance program that covers most workers. About 65% of applications for Social Security disability benefits were first denied and the monthly payment of 2012 holders was $1,130.

Continued

Employer-Sponsored Coverage: The main source of disability income protection is provided or sponsored by the employers. There are two forms: short-term disability (STD), which replaces a significant percentage of your income for about three months in most cases, and long-term disability (LTD), which typically pays 40% to 60% of your base salary for longer periods.

Individual Disability Insurance:  This is the most flexible and reliable that you purchase on your own. A privately owned policy is portable, meaning you won’t have to worry about losing coverage if you change jobs. Generally, most individual plans will pay between 40% and 65% percent of your salary. Benefits are received income tax free.

Long-Term Care Insurance

Long Term Care insurance is a must when you are older , however if you are not able to pay for care if needed without impacting your wallet, LTC is something that you should look into. Once you and your significant others assets are around $80,000 not including your home, you should get life insurance. These are covered care: Skilled, Intermediate Care, and Custodial Care