| Every family has a set of insurance needs that | | | | What if you are not earning a working income? If |
| must be analyzed and prioritized as a part of risk | | | | you are retired, and or living on investment |
| management. Risk management is the process of | | | | income, this type of insurance is not important. In |
| deciding how to control financial risk, and whether | | | | fact, it's not even available to people who are not |
| or not to transfer certain ones to an insurance | | | | earning an income and would not be applicable to |
| company. Before considering long-term care | | | | you. |
| insurance, it's imperative that you prioritize and | | | | 3. Life Insurance: If you are earning a working |
| plan ahead for your most important types of | | | | income and have children or others who are |
| insurance. | | | | dependent upon your income, your death would |
| Your 4 most important types of personal | | | | mean financial hardship for these people. Life |
| insurance, in order of priority are: | | | | insurance is designed to relieve that hardship, and |
| 1. Health Insurance: Anything can happen to our | | | | is potentially your third most important type of |
| health at any time. No one in our country should | | | | insurance. You may have other reasons for |
| be without health insurance because unexpected | | | | purchasing life insurance, such as to pay for |
| illnesses or accidents carry a hefty price tag. | | | | estate taxes. But if your reason for getting it is |
| Health insurance helps a financially comfortable | | | | anything other than to protect your dependents |
| family remain secure by covering unexpected | | | | from hardship, life insurance protection should be |
| hospital and physician charges that could | | | | moved to a lower priority on this list. |
| otherwise devastate their financial future. No | | | | 4. Long-Term Care Insurance: LTC insurance falls |
| other type of personal insurance is more | | | | to as low as number four on your list of insurance |
| important. | | | | priorities. Before considering this type of |
| 2. Disability Income Insurance: If you are working | | | | coverage, confirm that your other risks have |
| and earning an income, disability income insurance | | | | been prioritized, based on your family's unique |
| can replace a portion of your income if you | | | | situation. |
| become disabled and are unable to work. For | | | | If you have determined that your insurance and |
| people earning a working income, a risk | | | | risk management priorities are in order, then it's |
| management plan that replaces the income of the | | | | time to analyze whether or not LTC insurance is |
| breadwinner is imperative. Disability income | | | | right for you. |
| insurance is designed to protect a working income. | | | | |