Critical illness insurance
Critical illness insurance provides a lump sum benefit if you fall victim to one of the illnesses covered by your policy. Most insurers cover 18 serious illnesses, including heart attack, cancer, stroke, and Parkinson's and Alzheimer's disease (see chart). What you do with the benefit is up to you. You can use the money to help you recover from the illness, or to improve your care if there is no chance of recovery. You can seek alternative care, pay off your mortgage, hire a health care worker, or use the income to cover expenses until you can work again. With some of the insurers, you can have your money back if you have no claims at certain age. Upon death, your beneficiary will get all the premium you paid back. When you apply for critical care insurance, you will be asked for a family history. A high-risk genetic history can disqualify you, or make coverage more expensive. Coverage spans a wide range, from about $10,000 to $2 million. Ask about the term of your policy ¨C some policies cover you to age 65, some to age 75, some for the duration of your life. Many people buying this insurance are aged 35 to 55, people in the lower age group enjoying low premiums. Some critical illness policies will refund your premiums if you die without having made a claim - ask about this option.

Typical illnesses covered by critical illness insurance plans:

Long-term care insurance
Long-term care insurance covers the cost of personal care if you cannot care for yourself. The need for long-term care is assessed based on your ability to handle the six "activities of daily living" ¨C bathing, dressing, feeding yourself, using the toilet, getting out of bed or a chair, and keeping bladder and bowel control. Generally, if you lose two of these abilities, you qualify for benefits from a plan. How you use the benefits depends on the type of plan. An income plan provides a weekly income to spend as you like ¨C on nursing care in your home or in a long-term care facility. The income plan allows you to hire a family member to care for you. Reimbursement plans operate slightly differently. They reimburse the cost of a qualified care provider. Indemnity plans offer a lump sum daily while you need long-term care. Ask how long benefits will last. Some plans cover 250 weeks, some cover 500 weeks, and some last for life. You don't have to provide family history to qualify for long-term care coverage. However, older buyers may have to pass a cognitive test. As with many insurance plans, the premiums are lower when you buy at a younger age, but people can buy long-term care insurance well into their 70s. When you buy a plan, be sure to ask if it offers inflation protection. Also ask if there is an option to return your premiums if you never need care. Please feel free to contact for more details.