A noncancelable and guaranteed renewable clause: This clause guarantees that your policy can’t be canceled if you develop health problems. If you purchase a policy that requires periodic physical exams, you could lose your coverage when you’re most likely to need it.
A financially appropriate benefit period: Obtain a policy that pays benefits until an age at which you would become financially self-sufficient. For most people, that would require obtaining a policy that pays benefits to age 65 or 67 (when full Social Security retirement benefits begin).If you’re close to being financially independent and expect to accomplish that or retire before your mid-60s, consider a policy that pays benefits for five years.
A high deductible/waiting period: The waiting period is the “deductible” on disability insurance. It’s the time between your disability and when you can begin collecting benefits. We recommend that you take the longest waiting period that your financial circumstances allow, because doing so will greatly reduce your policy’s premiums. We generally recommend a waiting period of at least 90 or 180 days.
Residual benefits: This feature pays you a partial benefit if you have a disability that prevents you from working full time.
Cost-of-living adjustments: This provision automatically increases your benefit payment after you’re disabled by a set percentage or in step with inflation.
Shopping for disability coverage
After you understand the importance of having good disability insurance, hopefully you’ll be motivated to close the deal and buy it. Here are some ways to shop and compare so you end up with good coverage at a competitive price:
Check with your employer. Group disability plans can greatly accelerate your shopping process and generally offer decent value. Unlike with life insurance plans, group disability plans tend to offer more bang for your buck.
Peruse professional associations. For many self-employed people, if you find the associations that exist for your occupation or profession, you may well discover a fine disability plan. Just be sure to compare their offerings to whatever individual policy proposals you find.
Avail yourself of agents. Get referrals to insurance agents in your area who specialize in disability insurance. Using the policy guidelines in the preceding section, “Identifying needed disability coverage,” solicit and evaluate proposals.
FINDING A CAREER YOU LOVE
Most folks spend decades working. And getting caught up in the financial end of your career is easy and tempting. Of course, all other things being equal, you should earn more rather than less money! However, you should manage your career with an eye toward protecting and enhancing your earnings and your happiness.
We know folks who have been doing the same type of work for decades and love what they do. But they are the exception, not the norm.
A survey conducted by the Society for Human Resource Management found that when employees are younger (35 and under), their primary concerns are compensation and benefits. Older workers (over the age of 55) are more concerned with issues like job security, feeling safe at work, having the opportunity to use their skills and abilities, enjoying the work itself, and communication between employees and management. So, the financial aspects of work become less important for most workers as they get older.
Remember, you only live once. Take advantage of the opportunity to dream about alternative careers. Go back to school, take some continuing education classes, or go to an interesting seminar. For example, an insurance agent dissatisfied with the sales aspect of his job may move into teaching and then become a school administrator.
To brainstorm about your career options, including buying or starting your own small business, check out these books:
Small Business For Dummies, by Eric Tyson and Jim Schell (Wiley)
What Color Is Your Parachute? A Practical Manual for Job-Hunters and Career-Changers, by Richard N. Bolles (Ten Speed Press)
Investing In and Protecting Your Health
Your health is probably one of the most important components of a quality life. So, as you enter your senior years, if you’re not healthy, squaring away your personal finances can be much more difficult. After all, if you’re facing serious health issues and costly doctor and hospital bills, your finances probably won’t be as healthy either.
And, the best way to protect yourself against many possible illnesses and diseases is to proactively take care of yourself. Of course, some things are beyond your control, but you will be best positioned to prevent, delay, and fight off many health problems the better your overall health.
For example, during the COVID-19 pandemic in 2020, many studies showed that those who had medical problems including obesity were at far greater risk from the virus than those who were in good overall health. The elderly were at greater risk too, but of course, you can’t control how old you are even if you fib a little with the accumulation of more birthdays!
The following sections give you an overview and pointers about what you can do to ensure that your health is in order now and in the years ahead. With your good health in check, you can then enjoy retirement and be in a better financial situation. In these sections, we rely on Dr. Mehmet Oz and Dr. Michael Roizen for some help. They’ve coauthored numerous personal health books that we have found informative and helpful when consulting with seniors.
Take care of your ticker
One of the most important aspects of healthy living is ensuring that your heart is in tiptop shape. You can start by choosing to eat the following foods, which have heart-healthy and anti-inflammatory properties:
Alcohol: You must be careful with the amount (and type) of alcohol you drink. Women can have one drink per day while men can partake of two. The benefits of alcohol? It raises levels of healthy HDL cholesterol and also helps you to wind down so your blood pressure can do the same. (Just be sure not to drink too close to bedtime, because alcohol can disrupt sleep in some folks.) The best alcohol to choose is red wine with its abundant antioxidants.
Dark chocolate: Eating dark (not milk) chocolate may lower blood pressure, increase good HDL cholesterol, and lower nasty LDL cholesterol. Interesting fact: The Kuna Indians (who live near Panama) drink more than five cups of flavonoid-rich cocoa a day. They have little age-related hypertension.
Extra-virgin olive oil: Extra-virgin olive oil contains healthy phytonutrients and monounsaturated fats, which boost good HDL cholesterol. The docs recommend that about 25 percent of your diet come from healthy fats (for example, olive oil, avocados, and nuts).
Fish: Fatty fish, such as mahi-mahi, catfish, flounder, tilapia, whitefish, and wild, line-caught salmon, are rich in omega-3 fatty acids that reduce triglycerides in your blood. High triglycerides can cause plaque buildup in your arteries. Omega-3s also help reduce