Debt-Free Protection Plan: What is it, and how to set one up
In the United States, medical debt is a huge issue. In fact, it's the number one reason people file for bankruptcy. This is a frightening prospect, although most people have insurance to cover them in case of an emergency, every plan is different, and there can be so much uncertainty with regards to what will or will not be covered when all is said and done. So what happens when you have a shortfall in coverage and need to go into debt to pay for your medical expenses? How do you protect yourself and your family from this financial burden?
One way to protect yourself and your family is to set up a debt-free protection plan with your financial coach or financial advisor. This is going to consist of appropriate life insurance and an emergency fund. Putting these safeguards in place will help to pay off your medical debt in the event that you are unable to do so yourself. There are a few different ways to set up a debt-free protection plan, but the most important thing is to make sure that you have the coverage you need to protect yourself and your family.
The first step in setting up a debt-free protection plan is to find a good insurance policy. This policy should cover you in the event that you are unable to work due to an illness or injury. It should also cover your medical
What is a Debt-Free Protection Plan and why do you need one
A debt-free protection plan is a way to ensure that you and your family are taken care of financially in the event that you are unable to work due to an illness or injury. This type of plan can help you pay off your medical debt, which can be a huge burden if you are unable to work.
Everyone's Debt-Free Protection plan will look a little bit different than each other for a number of different factors, mainly the amount of debt they currently have, and the income needs that they need to protect. Generally, you and your insurance broker will want to begin by considering the following: Your Debt, Income, Remaining Mortgage, and Future Education Expenses. Of course, as with all things, you'll want to make certain that you can fit it within your budget, so work with your Coach or Advisor to decide on the appropriate coverage to apply for.
The first step in setting up a debt-free protection plan is to find a good term life with a living benefits insurance policy. This policy should cover your income in the event that you are unable to work due to an illness or injury. It should also cover your medical expenses to prevent you from going further into debt to pay for them. This type of policy is favorable because it is inexpensive, and if you are approved, guaranteed for only the time that you need it.
Living Benefits are important for those in these situations for more than just the debt aspect of things. The income protection will aid in the recovery process as well. Think about it, if you suddenly and unexpectedly lost a major source of income, you would immediately go out and try and find some way to replace it, wouldn't you? But what if you were sick or recovering from major surgery, and returning early could result in a major setback, or worse? Living benefits provide the insured with a layer of protection to give them the time and peace of mind to fully recover, allowing for a better long-term prospect for their quality of life.
What type of coverage does Living Benefits Life Insurance provide
Aside from Life and Terminal illnesses, Living Benefits Term Life provides coverage for Chronic Illness and Critical Illness. These are considerations that most employer-sponsored plans can overlook, so it's recommended that you get with your Financial Coach or Financial Advisor to verify that you have the appropriate coverage.
If you are chronically ill, it means that you're unable to perform two of six Activities of daily living (bathing, continence, dressing, eating, toileting, and transferring) without assistance, or you’re severely cognitively impaired for a period of at least 90 days. Vehicle accidents, accidents within the home, or even the gym are some unassuming places with a catastrophe could occur. If left uncovered, these could set you and your family back.
But not all setbacks are injury-related, something our health can get the better of us as well. Having a critical illness means that you've been diagnosed with a health condition such as a stroke, heart attack, cancer, ALS, and more resulting from a specific underlying condition. These are very important to have coverage on because they often need long recovery times to be certain you are healthy enough to return to your already strenuous life.
How to get pre-qualified for living benefits insurance.
This starts with finding the right insurance provider that fits your needs. You'll want to speak to your financial coach or your financial advisor to provide you with someone that can recommend the right coverage for you if they can't help you directly. Once you are in front of the right insurance broker, they will gather all the necessary information needed and submit your application on your behalf.
Once you have a good insurance policy in place, you'll want to be certain your financial advisor or financial coach knows about it. Keep in mind that you have them in place to help you in the off-chance that you are not able to help yourself, and assist your family with your needs while you are healing, and they will struggle without all of the information at their ready.
Conclusion
A Debt-Free Protection Plan is a must for anyone trying to get out of debt. It's a plan that helps protect you and your family in the event that something happens and you're unable to work.
=>Living Benefits Term Life Insurance provides coverage for Chronic Illness and Critical Illness. These are important considerations, especially if you have a family that is depending on your income.
=>It's important to have a financial coach or financial advisor that knows about your coverage, in case something happens and you're unable to communicate your wishes.
=>Keep in mind that you want a policy that fits your needs, so be sure to speak with an insurance broker to get the best coverage for you and your family.
As we discussed, Critical and Chronic Illnesses can happen to anyone at any time. If you’re not sure if you have the right insurance coverage in place or want a review of your current policies, reach out for a consultation. You might be surprised how much money you could save by making a few small changes to your plan. We offer complementary consultations so there’s no reason not to call and see what we can do for you.
