Insurance coverage

Increase your insurance coverage to protect you and your family against common challenges

Part of the value of the law is to help citizens avoid many legal problems. The best legal problems are the ones that never happen.

Here are two of the biggest challenges — and affordable steps to avoid the long-term financial impact on your family because of them.

Long term care insurance

Many of us will face debilitating health issues if we live long enough. We may need home health care, or we may be in a long-term care facility or nursing home. Each option is expensive. How will you and your family meet these costs?

If you move into an assisted living or nursing home, or have extended health care in your home, your significant monthly costs won’t be covered in the long run by your health insurance, including Medicare. You should seriously consider purchasing a long term care insurance policy.

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As you approach your mid-50s, some of the most important coverages a long-term care policy should contain include coverage for three to five years, as well as nursing home care, assisted living facilities, and home care. In addition, the chosen insurance company should have a solid financial rating. That is, does it have deep pockets?

The companies that underwrite the bulk of these policies have now forecasted their costs more accurately, despite some significant premium increases in the past, so there is much less premium increase from year to year. ‘other. For many years, companies were unable to accurately forecast their global exposure, leading to dramatic increases in premiums year on year, and some companies exited this market altogether.

Additionally, some preferred companies may have options to convert your life insurance policies or other coverage cost-effectively – a growing trend.

Without sufficient assets or insurance coverage, your children will have to bear the high monthly expenses of a facility, as some levels of care are not eligible for any public assistance. Families sometimes have to consider other senior planning options in their later years, which can be expensive without solid long-term care insurance coverage. And your time window and your choices are shrinking over time. So plan for this key expense to come while your health is good, and you can benefit from this insurance.

Can the premiums for a long term care insurance policy be expensive? Yes, they can. But with long-term care expenses at a nursing home sometimes exceeding $12,000 a month, paying the premiums beats the alternative.

Car insurance underinsurance

Another common risk that families face is that they are in a motor vehicle wreck that is not their fault, and the responsible party has little or no liability insurance.

Some statistics suggest that 80% of wrecks on our highways that result in significant bodily injury (as opposed to property damage just to your vehicle) are caused by 10-15% of drivers. A number of people have legitimate claims for damages that far exceed the coverage of the negligent party. Moreover, the chances that the aggrieved person can collect on a judgment from the negligent party are often slim to none, which aggrieved citizens are often shocked to learn.

Consider purchasing good underinsurance coverage so that there is adequate insurance to protect you if the responsible party has inadequate liability coverage.

Ways to reduce some of the overall insurance costs

How do you pay for additional coverage? Look at your standard deductibles on various coverages. You can increase the size of your deductibles which are often unused. Talk to your insurance company and review your insurance costs and see where you could save. You might be surprised how much more these savings on unused blankets can be than expected. The dollars saved will not be as much as these increased coverages recommended, but your dollars spent on coverages will be more profitable.

Remember: an informed choice is an intelligent choice.

Mike Wells is a partner at Wells Law, PLLC in Winston-Salem. Contact him at mike@wellslaw.us or 336-283-8700.