Unlike traditional health insurance, long-term care insurance is designed to help cover long-term care expenses for people with chronic illnesses, disability or other conditions – whether the person lives at home, a community organization or other facility. The policy assists with activities of daily living, such as bathing, dressing and eating. To determine if a long-term care policy is right for you, compare the amount of the policy’s daily benefits with the average cost of care in your area. Keep in mind that expenses the policy doesn’t cover are your responsibility. Selecting “inflation protection” ensures your benefit won’t erode.
There are benefit triggers that must occur before a policy will begin to pay. Usually, you can begin receiving benefits upon needing assistance with two “activities of daily living (ADL).” The six basic ADLs are eating, bathing, dressing/grooming, using the bathroom/continence and ambulating (walking/moving from one place to another) as well as transferring (moving one body position to another – like moving from wheelchair into a bed. The ability to perform these ADLs is what determines your medical status for health coverage and long-term care.
If you have been diagnosed with dementia/Alzheimers or an organic brain syndrome you typically already need assistance in one or more of these activities of daily living.
The ability to perform these ADLs is what determines your medical status for health coverage and long-term care.
Coverage to protect key employees like business owners, top salesmen and other employees important to the success of the business is known as Key Man Insurance. It is a life and disability insurance policy that the business owns, pays the premiums and receives the payout should the key employee die or become disabled. The insurance helps the company cover any loss of income or expenses associated with the employee’s death or disability.
Designed to help partners manage potentially difficult situations, Buy-Sell Agreements protect a business and its interests in the event of death, disability or retirement of a business owner. The agreement is a legally binding contract that specifically lists how a partner’s share of a business is to be sold or reassigned upon the partner’s death, or if the partner decides to leave the business. More times than not, the partner’s shares are sold to the company or the remaining members of the business. The funding of the buy/sell agreement is a key part to the successful implementation of this agreement. Most often this is done through a series of life insurance policies but can be self-funded.