(HawaiiNewsNow) - Reviewing insurance needs is probably not one of the most favorite pastimes for most families, but it is something that you should occasionally do to help protect your family. Here to talk more about reviewing your insurance is Bank of Hawaii Vice President Richard Oshiro.
The importance of having insurance in the first place is to help you keep your family's wishes and lifestyle intact in case of unforeseen events. And the way to frame the need for any type of insurance is to ask yourself what would happen if one or both of the bread winners passes away or becomes injured or sick enough that they can't work or take care of themselves. These protection choices would include Life, Disability, and Long Term Care coverage.
There are 2 main types of protection for life insurance: term and permanent insurance. Term protects you for a specific period of time, usually 1-30 years; is a low-cost option; is a good option for young families or for those on a tight budget; and it's good for covering needs that disappear over time (loans, college, dependents' living expenses while they are minors, etc.). Permanent coverage protects you for a lifetime; has a higher premium but also builds up a cash value for your family. Disability coverage is to help you and your family in the event that you become sick or injured enough where you can't work. Note that this type of insurance is not designed to cover your entire income so you'll also need to have emergency savings in place to help supplement your needs.
If you have grandparents that have lived a long time, this means that you and your parents might need Long Term Care insurance. This type of coverage can help you to pay for someone to come into your home or to pay for the costs associated with going to a qualified facility to assist you in activities of daily living like bathing, movement, dressing, and other personal needs when you get older. Given that people in Hawaii tend to live a long time, it is very important to ask your parents what they are going to do if they need this type of care. You may want to budget purchasing a policy for both you and them so you can help your family down the road cover some of the costs associated with this growing concern for many families.
The best time to consider any type of insurance purchase once you've established the need is when you are young and healthy since premiums are dependent upon age, gender, and health. Furthermore, if you are expecting a child or have young children, getting life insurance is a must. LTC cost coverage is a difficult topic as some insurance carriers are actually exiting the business altogether so families may be forced to save toward these future expenses along with their retirement savings needs. And if doing the math to get to these numbers is not a favorite hobby, get your financial advisor
or insurance agent to help you to find the most appropriate and cost effective coverage for your family. Remember, in the end it's all about taking care of your health and your family so do a little protection planning now for those you love and care about.
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