Disability Insurance

Think about it. What would happen if suddenly, due to an illness or injury, you were unable to work?

Without your paycheck, how long would you be able to make your mortgage or rent payment, buy groceries or pay your credit card bills without feeling the pinch? If you're like most, it wouldn't be long at all: Half of working Americans couldn't make it a month before financial difficulties would set in, and almost one in four would have problems immediately, according to a Life Happens survey.

That's where disability insurance comes in. Think of it as insurance for your paycheck. It ensures that if you are unable to work because of illness or injury, you will continue to receive an income and make ends meet until you're able to return to work.

You don't hesitate to insure your home, car and other valuable possessions, so why wouldn't you also protect what amounts to your most valuable asset? Contact your Chester, NJ independent insurance agent, The Insurance Outfit, to find out more.

Who Needs It?

Simply put, if you have a job, you most likely need disability insurance. The possibility of a disabling illness or injury may seem remote, but statistics say otherwise.

You actually have a three in 10 chance of suffering a disability that keeps you out of work for 90 days or longer at some point during your working career. And keep in mind that 90% of disabilities are caused by illnesses not accidents.

Most of us have some kind of personal debt, such as a mortgage or credit card bills. Would you be able to maintain your standard of living if you were too ill or injured to work for an extended length of time? Plus, a disabling injury or illness could lead to medical bills, modifications to your car or home or other unforeseen needs that can be quite expensive.

You also have to think long term. How much do you earn in a year and what would that be over a lifetime. A 25-year-old worker who makes $50,000 a year and suffers a permanent disability could lose $3.8 million in future earnings.

For all these reasons, almost anyone who works-whether they're single, married, with children or without-should consider disability insurance. Contact your Chester, NJ independent insurance agent, The Insurance Outfit, to find out more.

1. The Disability Survey conducted by Kelton Research on behalf of Life Happens, April 2012
2. The Real Risk of Disability in the United States, Milliman Inc., on behalf of the LIFE Foundation, May 2007
3. The Council for Disability Awareness, Long-Term Disability Claims Review, 2010

Long Term Care Insurance

Did you know that neither your health insurance nor Medicare would pay for extended long-term care services in the event that you needed them in the future?

If you develop a chronic illness or become disabled and can no longer care for yourself for an extended period of time, you'll need long-term care services.

And they aren't cheap.

The median cost for a home-health aide for an eight-hour day is more than $45,000 a year, while nursing care in a facility with a private room has a median cost of almost $88,000 a year.1 As life expectancies increase, so does the duration of long-term care needs, and the financial burden may end up falling on your loved ones after you've run through your own life savings.

This section will explain what you need to know about long-term care insurance and offers tips on where to buy it and the best time to do so. There's also an interactive map to help you get a sense of what long-term care services cost in your area. Contact your Chester, NJ independent insurance agent, The Insurance Outfit, to find out more.

Who Needs It?

Given that the cost of long-term care can quickly deplete your life's savings, you should seriously consider adding long-term care insurance to your financial plan. Plus, there's about a 70% chance you'll need some type of long-term care after age 65.

Should you ever require it, a home health aide visit costs about $20 an hour, while full-time nursing home care in a private room, the most expensive type of care, now has a median cost of almost $88,000 a year. In some regions of the country, like the Northeast, the cost may be well above that amount. While financial considerations cannot be understated, long-term care insurance is also about peace of mind and control. Having it ensures you'll have access to first-rate care when you need it, and that you won't have to be dependent on others or be a burden to your children. The odds you'll need long-term care insurance are greater than you might imagine.

Long-term care services are not just for older people: Anyone who's has been in an accident or suffers from a debilitating illness may also require round the clock care. In fact, 40% of patients receiving long-term care are under age 65. If you can afford to pay for care without significantly impacting your assets, you may not need long-term care insurance. Conversely, if your assets, not including your home, are less than $80,000 if you're married, or $30,000 if you're single, you may not be able to afford the premiums. But If you're somewhere in between, long-term care insurance should be part of the discussion the next time you sit down with an advisor to review your financial plans. Contact your Chester, NJ independent insurance agent, The Insurance Outfit, to find out more.

1. Genworth 2014 Cost of Care Survey, conducted by CareScout