There are a range of insurance products that can help safeguard your nest egg from unexpected events.
Umbrella Insurance
Although liability coverage comes with most auto and homeowners insurance, will it be enough to protect your retirement savings and other assets if you get sued beyond the limits of your policies? Umbrella insurance kicks in when the coverage limits of your home or vehicle insurance are exhausted. Add to this, Umbrella insurance may also cover certain types of claims that may be excluded from your other insurance policies. Highly affordable, the cost of $1 million worth of Umbrella coverage can range from $150 to $300 per year depending on where you live.
Long-Term Care (LTC) Insurance
The cost of Long-Term Care (LTC) in a nursing home can also drain your retirement assets. Also known as custodial care, it is non-medical care in a facility or home and isn’t covered by FEHB or Medicare. According to the latest statistics published by the World Population Review, the average cost of a private room in a nursing home is around $10,000 per month. Without LTC Insurance, you may have to tap into your Thrift Savings Plan (TSP) or home equity to cover the out-of-pocket costs.
Short-Term Care Insurance (STC)
Also known as convalescent insurance, Short-Term Care (STC) policies typically cover in-home care, assisted living, and nursing homes for 12 months or less. As a result, STC insurance is highly affordable at an average premium of $100 to $125 per month and the policy typically pays between $100 to $200 of STC costs per day.
“If there are any remaining funds once all funeral expenses are paid, your beneficiary will receive the money.”
Final Expense Life Insurance
A traditional funeral costs between $7,000 and $10,000 and the cost of a cemetery plot and headstone can add up to $4,000 more. Final expense insurance covers these end-of-life expenses plus any outstanding medical expenses when you die. The beneficiary can be anyone you choose including a funeral home. If there are any remaining funds once all funeral expenses are paid, your beneficiary will receive the money.
Fixed Indexed Annuity (FIA)
An FIA is an insurance product that establishes a contract between you and a private sector company that provides you with guaranteed income for life. As with other types of insurance, you’ll pay a premium. Also known as a Hybrid Annuity, it offers a minimum guaranteed interest rate and protects your initial investment from stock market volatility because FIAs have no underlying investments. You can also add a range of riders including a probate-free death benefit for loved ones and coverage for long-term care expenses.
To learn more about your insurance options, connect with an FRC® trained advisor.
