Insurance was created to pool the downside risk of loss. Many have experienced the premium cost with limited or no benefit. The cost of life’s risk have varied and risen so far and fast that it has become a chore to cover just the basics.
The basics include
- Long Term Care
Most states and lenders demand that property insurance be applied to purchases to secure their investment. It is impossible to buy a home financed by a banking institution without property coverage. In addition to the core homeowner coverage, a special primary mortgage insurance is required if the borrower personally invest less than 20%.
Some coverage we purchase for love. Life insurance is a death benefit, which means that the insured never gets to enjoy the benefits. Parents buy it for kids and unpaid obligations. This coverage comes in a variety of methods that are inexpensive to very expensive.
The most important asset that should be covered is one’s ability to continually produce income. This coverage is rarely purchased but should be considered. Disability insurance is a product that can fill in the blanks on a short-term or a long-term basis.
Long-term care insurance is the horse that is moving to the front of the race. The medical field is changing and keeping us alive a lot longer but maybe not as healthy or mobile. Understanding this, the statistics show that over 50% of the elderly population will require some nursing home support. The cost of nursing home visits is rising faster than education tuition.
Any purchase of insurance should be carefully considered based on the individual’s personal needs and property.