Prioritization
of
Insurance Needs
An evaluation of the suitability of long-term care insurance will be
inaccurate unless it is first determined that all of your other
important types of insurance have been prioritized.
The following is our list of
the
most
important types of personal insurance, in order of priority:
1. Health Insurance
No one in our country should be
without
health
insurance because unexpected illnesses or accidents carry a hefty price
tag. NO OTHER TYPE OF PERSONAL INSURANCE IS MORE IMPORTANT1
2. Disability Income Insurance
For people earning a working income,
this
type of
insurance is imperative. If you are retired, and/or living on
investment income, this type of insurance is not applicable to you.
3. Life Insurance
If you are earning a working income
and have
children or others who are dependent upon your income, your death would
mean financial hardship for these people. Life insurance is designed to
relieve that hardship, and is potentially your third most important
type of insurance. If your reason for needing this type of insurance is
other than to protect the financial security of your dependents (for
example: to pay estate taxes), it should be moved to a lower priority
on this list
4. Long-Term Care Insurance
You should consider LTC insurance
only
after you
have analyzed and confirmed that your more important insurance needs
have been addressed.
If you have yet to prioritize and plan for your most important types of
insurance, we recommend that you address those first before even
considering LTC insurance.
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