This is the eighth exercise in a series designed to walk you through an entire financial plan. The exercise is embedded in an Excel spreadsheet you can download and save for personal use. You can find the backdrop for the disability income exercise HERE and the long-term care exercise HERE, or just jump right in with the instructions given below:
This exercise is a three-step process. Step One is to determine what you need. This is accomplished by writing out a Disability Plan if you are in your 30s, 40s or 50s. If in your 50s, 60s, or beyond, you need to articulate your Long-Term Care Plan. Start the process by writing out a paragraph beginning with the following sentence: “If I became disabled [suffered a long-term health care incident], here’s how I would handle that financially…” We’ve provided space to do so in our online exercises for this chapter.
Step Two is to establish what you already have. The online exercise includes a template with spaces to fill in for the primary features mentioned in this two-part blog series. Once you have completed the template, you’ll better understand the coverage you have. Step Three is to determine what you actually need and want in a policy and create a template to retrieve quotes and find the best coverage. You’ll be better prepared for the engagement with the insurance agents because your template will ensure you’re comparing apples-to-apples, a very difficult thing to do with long-term disability income insurance and long-term care insurance.