Darras says, "Comparing features, advantages and benefits of different policies is tough; but putting off making decisions that can affect the rest of your lives, can be dangerous."
Determine where your financial risks are the highest, says Darras. Once you prioritize your risks, you should be able to choose insurance policies that can protect you best. Darras suggests:
DISABILITY INSURANCE
- Get disability coverage when you're young.
- Consider "own occupation" policies.
- Beware clauses limiting coverage to 24 months, after that, requirements change and you could be denied coverage.
- Understand the 'limitation on benefits'.
- Group disability coverage from work does not protect you and it's taxable.
LIFE INSURANCE
- Life insurance may not be necessary if no one depends on you for income, financial support and you have enough money for burial and funeral expenses.
- Life insurance helps leave our loved ones financially secure, in the event of a tragedy.
- Have a reliable second party listed on your policy so they can be notified if you miss paying a premium.
- Make sure you have 'waiver of premium".
LONG-TERM CARE
- If you are under 59, you are too young to shop for long-term care.
- If you are older, understand what services long-term care policies cover and who provides the care.
- Make sure the policy allows for care: in your home, by a family member or friend, in the home of a family member, in an adult care service facility, in an assisted living facility, a hospice facility or in a nursing home.
- Understand the terms: custodial, intermediate and skilled care.
Darras says, "Never buy from a company you don't recognize! Paying really cheap premiums to a company that won't be in business in 20 years can be devastating."
