When it comes to managing day-to-day finances, women are taking control. According to the recent MassMutual Benefits Barometer Survey of more than 1,000 women, 75 percent claim they are the CEO of their household finances or they share the responsibility, and yet financial experts say women still overlook the protection they need for guarding their greatest asset, their income, and their ability to keep their options open.
“Single or married, starting a career or near retirement, every woman should address the risks associated with an unexpected illness or injury that could put themselves and their loved ones in financial jeopardy,” said Colette Frey-Bitzas, a CERTIFIED FINANCIAL PLANNER™ professional and specialist in Financial Planning for Women Business Owners and Professionals. “Very few people realize that government programs are not necessarily adequate for long term care planning and their employer-provided group long-term disability insurance frequently only covers a little over half of their paycheck. For many of us, that barely covers the essentials.”
Ask yourself, right now, if you’re protecting your assets and your income or making any of the following common excuses that keep you from learning about disability income or long term care insurance coverage.
Which excuse delays you from peace of mind?
1. It won’t happen to me . We hope not, but it always helps to be prepared, especially since disability is the cause of nearly half of all home foreclosures in the U.S., according to a study published by Compton Insurance Marketing in 2002. And in fact, 68 percent of respondents to the MassMutual Benefits Barometer Survey haven known someone who has been too sick or injured to work and/or care for themselves. Knowing what your disability income insurance coverage protects, and how much you are eligible to receive should you need it, is important for everybody, young and old.
2. My employer-provided coverage is enough. Chances are, it probably isn’t. The same MassMutual survey found that approximately one in four women do not have any disability insurance. Many women that have group long-term disability coverage through their employer don’t realize that the average coverage from these plans may not protect enough of their income or their ability to continue to contribute to their retirement savings program. Ask your benefits administrator what is offered and if they’ve considered a voluntary disability income insurance program.
3. The government is there for me. According to a report to the U.S. Senate in 2001, women face a greater risk of needing long-term care by a caregiver because they usually outlive their spouses. If you suffer a disability that requires assistance with activities of daily living, from bathing and dressing to eating, you may need long-term care, which is becoming increasingly expensive. Many think they can rely on Medicare or Medicaid, but don’t realize they both have limits on the kind of care and a person’s income and assets. A long term care policy is designed with choice and options in mind to protect an individual’s assets and cover expenses associated with services, such as home care, assisted living, and community and nursing facility care.
4. It is too hard to figure out. As with any financial planning, the first step is the hardest. Fortunately many online tools, including www.halfapaycheck.com , offer online calculators for confidential and easy self-evaluation. In just 10 minutes, you can find out how an unexpected illness or injury could impact your financial future.
The MassMutual Benefits Barometer Survey was completed on-line in September 2004, by 1,126 U.S.-based Executive Women’s Golf Association members. To view complete results, please visit www.halfapaycheck.com .
The MassMutual Benefits Barometer Survey was completed on-line in September 2004, by 1,126 U.S.-based Executive Women’s Golf Association members. To view complete results, please visit www.halfapaycheck.com .
