See, term insurance and long-term care are two different insurance products, but in the end, both promise you the same thing, which is to serve as a safety net for your loved ones when you are not around or when you require extra care when you are too old to do it for yourself. And if you are someone thinking of planning for your golden years, then there is no way that you should be skipping on these two insurance options. Let’s understand how term insurance and long-term care insurance go hand in hand, and how you should plan for your golden years effectively.
What Exactly Is Term Insurance?
Remember we talked about how these two insurance products can be like a safety net for your family when you are not around anymore? Well, term insurance is designed for that specific reason. In term insurance, you pay a premium to your insurer, and if for some unfortunate reason, you pass away before your term insurance validity ends, your family will straight up get the insurance amount you signed up for when buying a term insurance policy.
Then What Is Long-Term Care Insurance?
See, we all grow old, and that is something none of us can stop or prevent, right? And in those olden years, we all might need extra care, at least these days that’s somewhat necessary for the old folks. But that so-called “Extra Care” is often super expensive, whether you are getting that care at your place or in a special living place. And that is precisely where long-term care insurance comes into play. How? Well, with such an insurance product, these extra care costs are kept to almost zero or super minimum, so that the older folks or their family members don’t need to pay out of their pocket.
So How Can You Plan Your Golden Years In A Better Way?
First of all, you should keep things simple. That’s because most of the insurers out there will try to confuse you with rules, policy regulations, and all that stuff. But all you need to do is opt for a term insurance plan first and regularly pay your premium. Let’s say you are a 30-year-old right now, then at least, you should be going for a term plan that backs you up till 65 years of age. Anytime between that term plan period, if any mishap occurs and you are not around anymore, the insurer will have to offer the financial support that you signed up for.
But there are certain term insurance plans where you can sign up for extra premiums which will be compounded and will be given to you at the end when your plan/policy ends. Let’s say you bought a plan for up to 65 years of age, and your extra premium adds up to 10 or 20 lakh rupees depending upon how much your extra premiums are, well, in that case, you’ll receive that extra premium compounded amount at the end of the term plan tenure. And that amount can be used for extra care in your golden years, let’s say for medical or living expenses.