6.03 Health and Disability Insurance

Health Insurance

Health insurance, which provides protection against financial losses resulting from injury, illness, and disability, may cover:

• Hospital stays
• Surgery
• Dental work
• Vision
• Long-term care
• Prescription drugs

Coverage depends upon the policy because the terms vary among different health care policies.

Health insurance is usually purchased through a person's employer, although it can also be purchased individually.

Children may be covered under their parent's health insurance until they are 26.

Types of Health Insurance

Open Types of Health Insurance in a new tab

Note: The presentation may take a moment to load.

The Affordable Care Act

Open The Affordable Care Act in a new tab

Note: The presentation may take a moment to load.

Disability Insurance

According to the Insurance Education Foundation, one out of ten people will become disabled before age 65.

Insurance is available to prevent the risk of losing income due to a disability. Disability insurance replaces a portion of one's income if he or she becomes unable to work due to illness or injury.

The insurance typically pays between 60% – 70% of one's full time wage. Many employers offer disability insurance as part of the benefits package. It's important to note that an insurance policy has to already be in place before a person becomes disabled.

Long-Term Care Insurance

As Americans are living longer than ever, the need for end-of-life care is increasing. Nursing home costs are rising rapidly so many Americans are turning to long-term care insurance.

Long-term care insurance will pay for stays in a nursing home or for in-home care. These policies typically pay between $50 and $350 per day in a nursing home.

Premiums are typically lower the younger you decide to purchase Long-Term Care insurance. Don't wait too long since many insurance companies will not allow you to purchase it at all after a certain age, usually 80 years old.