RMI-4115 Lecture Notes - Lecture 10: Disability Insurance, Respite Care
16 Apr 2019
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Risk factors: age, marital status, gender, lifestyle, health, family history, events beyond our control. Intermediate services: provided through, nursing homes, home health care, adult day care. How does increasing longevity affect need: makes it more likely that you or your spouse will need it at some point. Insureds can pay a level premium for life, unless they choose to cancel the policy: premiums are based on the enrollee"s age as of the effective date of enrollment. So the level of premium will be much lower for people who start paying early: recommended buying around age 45. Inflation protection options: guaranteed benefit increase option, automatic benefit increase. If you purchase a tax qualified plan, you may be able to deduct all/part of the cost if you itemize your taxes: must be unable to do two adls in order to trigger payment.
