Single Person: Life, long term care or disability insurance?
By Jamie K. Fleischner, CLU, ChFC, LUTCF
President, Set for Life Insurance
Today I met with a single woman and we discussed her insurance planning needs. Her name is “Kori” and she is in her early 50s and is a practicing attorney. She runs her own law firm, is single, does not have any children and owns her home.
As a single person, her greatest concern was being able to take care of herself if she became too sick or injured to work. Although she has accumulated a lot of assets in her portfolio, she does not have anyone else to rely upon other than herself.
The first item we took care of was disability insurance. She currently did not have any disability insurance for herself or for her business. She needed an individual disability policy to take care of her personal, take home income. For her business, we implemented a business overhead expense policy to take make sure she could handle her business expenses if she couldn’t work.
The next thing we discussed was life insurance. She did not have any dependents or a large estate. As such, we decided that life insurance was not an imminent need. Although she is healthy and could still qualify for life insurance at a decent rate, it was not economically necessary since there was no one financially dependent on her.
Her other concern was long term care. She is still very healthy but looking into the future, she has no one to rely on if she becomes ill or has a chronic condition. She has too many assets to qualify for Medicaid yet not enough to be able to pay for all of the expenses if she needed nursing care. Additionally, since she runs her own business, she would be able to deduct her premiums through her business and still be able to receive tax free benefits. She chose a policy that is a “10 pay” which means she will pay premiums that are guaranteed for the next 10 years and will never have to pay any more premiums again.