Life insurance policies include four primary types of insurance coverage.
- Term Life: This is a basic life insurance package. This policy is the cheapest and covers all the essentials.
- Whole Life: With this insurance policy you will be guaranteed a payout on your death, as long as you continue to make payments. This policy is more expensive than Term Life insurance because you will be creating an investment fund and your beneficiaries will receive an insurance payout.
- Long Term Care: This policy helps provide for the cost of long-term care beyond a predetermined period.
- Disability: This policy is enacted should a beneficiary be disabled and unable to work and earn income.
Term life insurance provides coverage at a fixed rate of payments for a limited period of time (typically between 20 or 30 years). It is typically the most inexpensive way to protect your family but policy is no longer in force once the fixed term expires or the premium is not paid.
Term Life Insurance is right for you if you want:
- An affordable way to get maximum coverage
- To cover specific financial responsibilities (mortgage or college expenses)
- To supplement your Permanent Life Insurance (mortgage-paying years, growing-family)
Whole Life / Permanent
Whole life or permanent insurance pays a death benefit whenever you die—even if you live past 100. There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type. Call Fortside to discuss the difference and determine which option makes the most sense for your situation.
Long Term Care
The need for Long Term Care coverage arises during our retirement years, an injury or illness, or a cognitive impairment. This coverage protects you and your loved ones, in the event that extended health care is needed.
Long-term care insurance coverage can vary widely, as some policies may only cover nursing home care, while others may include coverage for a whole range of services like:
- Care in an adult day care center
- Assisted living care
- Medical equipment
- Formal and informal home care.
Long-term care insurance premiums vary, depending on your age and health status when you buy the long-term care insurance policy and how much coverage you want. You must be in generally good health to pass underwriting when purchasing this policy. So, it may be better to buy long-term care insurance at a younger age when premiums are lower, however you can purchase long -term care at any age.
Long Term Care Insurance can help cover:
- Daily Activities – eating, bathing, dressing
- Cognitive impairment – Alzheimer’s and dementia, and care-oriented conditions
- Skilled Nursing Care or Rehabilitation Training
Disability Insurance, DI or disability income insurance, or income protection, is a form of financial protection that insures the beneficiary’s earned income against the risk that a disability inhibits their ability to perform their job functions. Disability Insurance is a crucial insurance policy to have, since it helps pay your bills if you are unable to work because of an injury or illness.
Short Term Disability
This pays a percentage of your salary if you become temporarily disabled and cannot work for a short period of time.
Long Term Disability
Long Term Disability coverage begins after all Short Term Disability benefits have been exhausted.