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<March 2015>



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Disability And Long Term Care Insurance Protect Against Accidents And Extended Illness

 By: Jeffrey J. Buonforte

Disability and long term care insurance are important aspects of financial planning. These insurance options protect families facing a situation of income loss due to a catastrophic accident or an extended illness.

According to a recent National Underwriters study, men have a 43% and women a 54% chance, of becoming seriously disabled during their working years.[1] Regarding long-term care two-thirds of people 65 or older will need long term care in their lifetime at an estimated cost of over $70,000 per year, according to MoneyWatch.com.[2]

Planning for these situations can protect your family and estate from hardship and financial ruin. 
Private disability insurance covers earned income, commissions, bonus, profit sharing, and is paid with your after-tax dollars. Many people choose to carry private disability insurance in addition to the disability insurance offered by their employer because employer disability plans run two to five years or until one reaches 65 years of age.

Long-term care insurance covers costs of long-term services not covered by traditional health insurance or Medicare such as in-home care and assisted living. It’s also worth noting that the earlier a person purchases a long-term care insurance policy the lower the premiums will be.

The Motely Fool provides a great list of things to consider when purchasing an insurance policy:[3]

  • Insurer’s definition of disability
  • Payment Trigger flexibility
  • Residual Benefits and Cost-of-Living Riders
  • Pre-existing conditions exclusions
  • Length of Coverage
  • Wavier of Premium
Disability and long term insurance will provide some piece of mind in the event an occurrence happens that threatens your earning potential.
*Securities are offered through Essex National Securities, Inc., member FINRA & SIPC. Insurance products are offered through Essex National Insurance Agency, Inc. Neither are affiliated with Lakeland Bank.

Products are not guaranteed by the bank, not FDIC insured, not a deposit, not insured by any federal government agency, and we may lose value including loss of principal.

[1] http://www.protect yourincome.com/disability-insurance-facts.asp; Why Disability, booklet, published by National Underwriter.
[2]Long Term Care: What Are the Real Risks?, Moneywatch, http://moneywatch.bnet.com/retirement-planning/blog/money-life/long-term-care-what-are-the-real-risks/1305/
[3] Sources: Insurance Information Institute; Consumer Federation of America; JHA and http://www.fool.com/insurancecenter/disability/disability05.htm

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