Keeping Out of the Premium Paying Poor House

August 7, 2007

All types of insurance policies promise to pay the bills, should the unthinkable happen. They also can put you in the premium paying poor house, says Frank N. Darras, the nation's leading disability and Long-Term Care insurance lawyer.

Folks making decisions that can affect the rest of their lives either sign up and hope for the best, or the entire process gets pushed aside in the wake of job responsibilities and caring for a family.

Darras says, "Fully understand what you are buying and pay close attention to the fine print; have any legalese translated into simple English so you're sure you get what you are promised. Be certain that the representations in the sales brochures match the language in your policy."

Darras offers these tips:

DISABILITY INSURANCE — Get your disability coverage when you're young and always obtain the longest benefit period possible that protects you in your "own occupation." — Understand group policies at work, they are nothing to depend on.

LIFE INSURANCE — If no one depends on you for income or financial support and you have enough money for burial and funeral expenses, life insurance may be unnecessary. — The peace of mind and security of knowing you are leaving your loved ones financially secure, should make paying the premiums worthwhile. — Have a reliable second party listed on your policy so they can be notified in the event you miss paying a premium. This waiver of premium should help prevent the policy from lapsing and you from losing life insurance you have paid on for years.

LONG-TERM CARE — Around your late 50's is when you need to start considering the Long-Term Care option. — Understand what services the long-term care policies cover and determine who can provide the care and where. — Understand the policy terms custodial, intermediate and skilled care and consider which type you may need and how soon. — Never buy from a company you don't recognize! What good is a policy with really cheap premiums from a company that won't be in business 20 years from now?