- Posted by RAA
- On October 4, 2022
While having the appropriate coverage is an important piece of your overall financial plan, we also understand that insurance comes with a lot of questions.
We’ve asked Jodee Deutsch, RAA’s Director of Insurance, to cover the most important insurance questions that women have. An expert in the field, Jodee liaises between RAA’s advisors and clients, and has been helping find solutions to the insurance needs of women for over 25 years.
- What are some of the most important types of insurance coverage that women should consider including in their financial plans?
Women should absolutely consider life insurance when they have family that is dependent on their income, or in circumstances where there is debt (including a mortgage). Simply, in the unfortunate event that you should pass away, would your loved ones experience financial hardship? In most circumstances, especially with young families, the answer is yes. Later, as we move into our 50s, so as not to place the burden on the estate, or on relatives or children, women should also consider long-term care insurance for themselves and, if applicable, their partners.
- Why do women need life insurance? How should they go about determining how much they need, or, if they have a policy through their employer, whether that work policy is adequate?
As previously mentioned, women need life insurance to protect their families against the loss of income. (This can also be true as a hedge to be able to pay for your family’s healthcare should you pass away.)
But even if you’re a stay at-home parent, you also need life insurance to provide care (and possibly pay for their education) if something happens to you.
One thing to consider is that if you are healthy, group life insurance offered through your employer is more expensive than individual insurance. Also, there are several formulas for determining life insurance needs. A simple one is: 10-to-20 times your yearly salary, or, at a minimum, what it would cost to replace the years of childcare that would be required until your youngest turns 18.
It’s important to speak to your advisor about your insurance needs. He or she will be able to examine your situation and determine if there are any holes or risks that should be addressed.
- When and why should women invest in long-term care insurance?
Of course, no one wants to think about their incapacitation. But there are numerous parts of long-term health care that are not covered by Medicare or regular health insurance. And these things can cost thousands of dollars each month.
Women should begin thinking about options for long-term care insurance when they are 50-to-60 years old. People are generally living longer, and the U.S. Department of Health and Human Services just reported that 69% of people will need long-term care services at some point during their lives.
- Specifically, how does long-term care insurance differ from regular health insurance?
Health insurance provides for your medical needs, such as hospitalization, physician’s services, surgery, lab work, medications, etc. Long-term care insurance pays for helping you with activities of daily living, often right in your own home, if you are unable to, say, feed or bathe yourself due to cognitive or physical impairment.
- Since the Medicare and airline open enrollment periods are approaching fast, can you offer one piece of advice to anyone who is looking to enroll in a different plan for next year?
The key to choosing any type of insurance is to have your goals and needs in mind. We advise you to sit down and make a list. For example, for a Medicare supplement, it’s vital to have a list of the physicians you visit, the medications you take, and so forth. As a helpful tool, to help you determine which Medicare plan will best meet your needs, fill out our Medicare Plan Shopping Worksheet.
In preparation for the open enrollment periods, our team at RAA can help you review and evaluate your health insurance needs and coverages so you can be sure that all your needs are met.
- In your experience, what are some important first steps that women need to take to start planning for better future financial outcomes?
I recommend that you begin planning as early as possible – just as soon as you start your first career-type job and have access to things like insurance and savings vehicles such as a 401(k) plan. By starting early, your time horizon is long, and you and your financial advisor have the best opportunity to create a plan that will help you meet your financial and retirement goals. A financial advisor can develop a customized document for your income, assets, and liabilities, and then incorporate your goals and risk tolerances, using that information to create short- and long-term plans to help you meet your life, investment, and financial goals.
If you have any questions, if you’d like a second opinion, or if you’d like to review your insurance coverage, RAA offers insurance guidance and risk management services to help protect you from the unexpected or unavoidable occurrences of life.
Contact your advisor to get started.
RAA is an Allworth Financial company. Allworth Financial is an Investment Advisor registered with the Securities and Exchange Commission. Securities offered through AW Securities, a Registered Broker/Dealer, member FINRA/SIPC.
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