Long-Term Care Insurance - The 4 Most Important Types of Insurance and Where LTC Insurance Fits In

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