Remember when your parents insisted that you "layer up" when going outside? "You can always take layers off, but you can't put on what you don't have with you." Consider adding these five defensive layers to protect what matters most to you.
Layer 1: Health Insurance*
Yes, it can be expensive, but if your employer provides health insurance, sign up. It's better than potentially incurring crushing medical debt. Self-employed? Look for the best, most affordable coverage. Also, consider a Health Savings Account (HSA), a tax-advantaged way to save for medical emergencies (if you're eligible). If you don't use it today, it travels with you and can be used well into retirement.
Layer 2: Life insurance
In the event of your death, the proceeds will help your loved ones maintain their lifestyle, avoid financial hardship, and pay essential bills, such as housing, health care costs, college tuition and loans. Certain types of life insurance build cash value, a living benefit which can fund things like mortgage payments and education.
Layer 3: Disability Insurance
Disability insurance replaces a percentage of your lost income should an accident or illness keep you from working for an extended period. Think of it as "income insurance." Typically tax-free, the money can cover retirement contributions and student loan payments. And it's not just for rare, catastrophic accidents. Many people rely on these policies to cover the income lost due to relatively common conditions, like heart disease and arthritis.1
Layer 4: Long Term Care Insurance
Long term care insurance can help reduce the financial burden of caring for an aging, sick relative.
Layer 5: Umbrella Insurance*
An umbrella insurance policy kicks in when you reach the liability coverage limit for your homeowners, auto, and other insurance.
Establishing protective measures - layering up, if you will - reinforces all the hard work you've already done and helps you to prepare for the unexpected.
*Neither Guardian nor its subsidiaries issue Health, Property & Casualty, Automobile, or Umbrella Insurance.
1 Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA or provided by Guardian. BLICOA is a wholly owned stock subsidiary of and administrator for the Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state.
2020-96471 Exp. 3/22