Written by Bruce Kantor, CLU, Kantor and Associates Insurance.
Dorothy said to her dog in 1939, “Toto, I don’t think we’re in Kansas anymore”. Things changed for Dorothy in the Wizard of Oz and change is happening today at an ever increasing pace. A generation ago, age 45 was considered ‘middle aged’ and today age 65 is the new 50. Many of the new 50’s are working longer than ever before. There are a combination of factors: Today’s seniors are healthier than they were a generation ago. The recession has decimated retirement savings and businesses are no longer using the lucrative pension and retirement plans of our parent’s generation. Many find more satisfaction in work than in retirement. As these masses have chosen to return to work, disability is becoming a greater and greater risk to these aging Americans.
Insurance companies fashion their individual disability products to cover the risk of disability during one’s working years. Translated to English, this means we are covered up to age 65 and perhaps until age 70 but not longer. How can the older person insure his or herself against the peril of disability?
There are several options available.
- Group disability. Many employers offer group coverage for their full time staff. Many of these policies will offer coverage to the over 65 population. Often as with group life insurance, they may reduce the amount they will pay. These plans may reduce or place other limitations in their coverage.
- Keep your old individual policy. You may be able to keep it to age 70 so long as you are working on a full time basis. It is likely that that old fixed premium policy will have a premium increase at 65 but it is irreplaceable.
- Indemnity Long Term Care Insurance. A number of long term care policies will pay a fixed amount if one qualifies for a claim regardless of whether they are receiving care. There is no income limit needed to purchase and no physical. The company will issue the policy based upon a phone or face to face interview, cognitive evaluation and letters from attending doctors. These policies can be kept in force for life. They are more expensive than a regular long term care policy but when used in lieu of disability, they are worth it.
Disability is and should be a concern for the over 65
crowd. It takes some research and good council to find a solution to this serious problem. Call your broker and have a discussion on this matter.
Bruce Kantor, CLU is an over age 65 insurance broker living in Charlotte, NC. He has been a full time insurance professional since 1970.
He can be contacted at: Bruce@KantorAndAssociates.com
His website is: www.KantorAndAssociates.com
His Blog is: www.KantorAndAssociates.wordpress.com