Insurance World

What would you do if an illness or injury left you unable to care for yourself? The chances of that happening might be greater than you think.

The U.S. Department of Health and Human Services indicates that people 65 and over face at least a 40 percent risk of entering a nursing home, while the U.S. Government Accountability Office estimates that 40 percent of the 13 million people receiving long-term care services are between 18 and 64.

Despite the risk, a 2005 Kaiser Family Foundation survey shows that only two in 10 (21 percent) adults say they have long-term care insurance. While cost is a common deterrent, LIMRA International, a market research organization, says that people who have never shopped for policies overestimate the cost by as much as five to 10 times.

“Premiums vary due to age, health and policy type, but most middle-income consumers can benefit from a long-term care policy,” said Scott Perry, executive vice president and chief operating officer of Bankers Life and Casualty Company, the 127-year-old insurer that specializes in the mature market. “Like other insurance, the younger and healthier you are when you buy, the less expensive the premiums.”

Planning for long-term care is encouraged while in your early 50s. As you research, remember to:

Determine long-term care costs.

Read about long-term care coverage.

Explore what’s available. Compare several insurers’ policies. Choose a well-established company with solid financials. Long-term care can be challenging and emotional, so you might want help from agents experienced in serving the mature market.

Determine what you can afford. According to the Life and Health Insurance Foundation for Education (LIFE), a good rule of thumb is to spend no more than 7 percent of your gross income on long-term care premiums. Consider spousal discounts and how different elimination periods, daily benefits and maximum benefits affect premium cost.

Involve your children. A 2004 survey sponsored by Bankers Life and Casualty Company found that adult children overestimate their parents’ planning, while older adults think they have the proper policies but are confused as to what they actually cover. Sixty percent of seniors mistakenly believe Medicare will cover long-term care costs. These disconnects can put unexpected financial burdens on both generations.

© 2006, AdjustCredit.com, Joel Cohen

Life isn’t honey well at least not always. Whether you like it or not accidents do happen, the only way you can prevent yourself from paying thousands if not hundred of thousands of dollars in case of an accident, is correctly choosing an auto insurance policy. If you’re already at it then consider buying Bodily Injury Liability.

Put yourself in a situation for a moment; you just had a car accident and injuries are involved. You believe that everything will be fine since you are insured and you’re right, you don’t have to worry if your auto insurance policy contains Bodily Injury Liability.

This is no joke; if you are the one found guilty for an accident with injuries involved and your auto insurance policy doesn’t cover Bodily Injury Liability you can be sued for A LOT of money. To make the last sentence clearer: You can even loose your house, any assets you may have and in certain cases drown in debt not to mention filing for bankruptcy. I would think that is unpleasant.

Buying more liability for your auto insurance is always a smart idea and will give you piece of mind. You can be an excellent driver just remember you aren’t a machine you can get nervous, hungry, sad, tired and those are more than enough reasons to get yourself into an accident on an unlucky day.

Even with buying Bodily Injury Liability your premium doesn’t have to be so high. There are still actions you can take to pay a reasonable amount for your premium and you still be saving. You can drop your comprehensive coverage, and raise your deductibles. If your car isn’t worth 10 times your premium (meaning it is relatively old) you can even drop your collision and comprehensive coverages all together.

Discounted auto insurance is always a good idea however, do it correctly and calculated don’t drop it too low because you might fall. You can find ways to correctly and costs efficiently build your auto insurance all you need is a bit of research.