Thomas, a sales manager, is several years away from retirement. Life is good until he starts having severe chest pains. Blockages in his arteries are restricting the blood flow to his heart and he needs coronary bypass surgery.
Nervous about the operation wait time, Thomas travels to the United States for immediate surgery that costs $75,000 — from his savings. Then he took a less stressful job at lower pay. Now Thomas must delay his retirement by two years, maybe three.
If Thomas had critical illness insurance, the tax-free lump sum would have covered his surgery and loss of income. In a way, it’s like insurance for your investments – the benefits protect you from having to take funds from your nest egg.
Disability insurance fulfills the same role of protecting your investments if an injury or illness prevents you from working. If you have no source of income for an extended period, you’ll need to withdraw from your savings. Make sure your coverage is adequate – some plans leave you unprotected if a disability lasts more than one or two years.
During retirement, long-term care insurance protects your nest egg if you ever require long-term care in a nursing residence or at home. In fact, long-term care lasting several years can become so expensive that you may also put at risk the savings designated for your heirs.
Any investor at any age is only one injury, illness or medical condition away from having their nest egg at risk. Talk to us about making sure your insurance program meets your needs.