Insurance Essentials – Protecting Your Assets and Future

Asset protection is an integral component of any comprehensive financial plan, helping safeguard assets against unexpected events and eventualities. Learn how to utilize tools like umbrella plans, life and long-term care insurance to create a safeguard for the future.

Discover all you need to know about NY State of Health’s Essential Plan, such as eligibility factors, benefits and cost sharing details.

Long-Term Care Insurance

Many of us will eventually need long-term care services, with costs potentially running into the thousands. With an appropriate policy in place, however, your assets and future can be safeguarded from such expenses while providing income to those reliant upon you for assistance.

Long-term care insurance can cover expenses related to nursing homes, residential care facilities, adult day care services, home health care and hospice services depending on the policy selected. Furthermore, certain policies include inflation protection to make sure the benefits you receive can keep up with rising cost increases.

When selecting an insurance policy, it’s essential to take your current financial status and family history into consideration. Furthermore, selecting a reputable and financially secure company is wise.

Disability Insurance

An illness or injury could impede your ability to work, making disability insurance vitally important in safeguarding your financial future by replacing part of any lost earnings.

Many individuals obtain group disability coverage through their employers; however, these policies may limit your options and are usually nonportable when leaving the company. Consulting an independent financial professional is recommended in order to explore individual coverage for this important protection.

Individual disability insurance typically uses after-tax dollars as its source, and can replace up to 80% of your after-tax income. Benefit payments usually commence after a specified waiting period (or elimination period), and any necessary expenses related to your disability qualify as tax free income. Some policies also provide optional riders that enhance coverage such as student loan protection.

Homeowners Insurance

Homeowner’s insurance is essential in protecting one’s investment in their home and financial security. Policies protect against damage from fire, weather or theft as well as protecting against personal liability claims.

Coverage options vary between companies. Homeowners have various standardized policies available to them; one such standardized policy for homeowners is Special Form (HO-3) which typically provides all-risk protection against damage to structures on an all-risk basis, meaning any incident not specifically excluded will be covered.

A typical homeowner’s policy provides coverage for living expenses when it becomes necessary to relocate due to an insured disaster or peril, and can extend coverage up to a certain percentage of dwelling coverage limit, often increasing with endorsements such as computers, guns, silverware or jewelry coverage.

Auto Insurance

Auto insurance protects your vehicle against damage from both natural and man-made sources, and provides medical payments and towing coverage as well. Bodily injury liability policies help cover costs related to injuries caused while driving your car – and cover bodily injury liability payments when someone is hurt due to you driving it negligently. Property damage liability covers expenses related to damage that you and others driving your car have caused to other vehicles or property, including fences, buildings or utility poles. Personal Injury Protection (PIP), more commonly referred to as Med Pay, covers medical expenses and lost wages following an accident for both you and any passengers involved. You may even qualify for discounts when purchasing both comprehensive and collision coverage from the same provider – making PIP even more appealing!

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