Long-Term Care, Disability and Critical Illness Insurance: Worthwhile Protection or Waste of Money?

As long as human beings have walked the earth, they’ve been exposed to risk — risks that threaten their health and well-being, their property, their lifestyle and their livelihood. Insurance affords us protection for those moments when risk becomes reality.

At its core, insurance is a contract — commonly known as a policy — designed to provide protection against a specific risk, where if certain circumstances covered by the policy come to pass, the insurance company provides the holder of the insurance contract with some form of reimbursement — the insurance benefit — to compensate them for the damage they sustained or the costs they incurred when that risk becomes reality. To gain coverage, the contract-holder makes payments to the insurance company in the form of premiums.

The value proposition for insurance boils down to a simple question: Does paying the premium for coverage to address a specific risk make more financial sense than potentially having to pay much more than the premium amount out-of-pocket should that risk actually become reality. If the answer is yes, then it’s a matter of finding the appropriate insurance coverage to address that risk.
Read More