Change in Health

Prepare and protect with insurance.

Life changes. Sometimes they're changes you've planned for and sometimes they're chance surprises. For instance, changes in health can happen without warning. What happens next?

Whether it's a routine medical checkup that leads to something unexpected or an accident on the job that jeopardizes your current or future income, proper preparation can be your lifeline.

Health issues are unpredictable; Thinking ahead can make you feel better.

By planning ahead, you'll have the financial support you need to help replace lost income if you are faced with a serious health crisis. Meet people who are taking steps to minimize the financial risk of a health crisis.

Single Person Single Parent Established Family
  • Josh

    Single, no children

    Age: 33

    Yearly household income: $40,000

    Protecting financial health Josh takes cares of himself and has even earned a "wellness discount" from his employer's health plan. But he knows that accidents happen and if something were to keep him from working, even just for a short time, his only source of income would be gone. He's decided to add supplemental health insurance as extra protection from "what if." If he breaks his leg and can't perform his job or is suddenly ill and has to miss work, his new coverage can help pay for deductibles, groceries and even his rent.

    Preparing for the future When Josh's grandfather passed away, his grandmother was surprised with the unexpected costs for the funeral. With their house paid for and children gone, neither had a life insurance policy anymore. The final expenses were more than she could cover without help from the family. Josh doesn't want his parents or siblings to be burdened if he passes. He's purchased a whole life insurance policy. Depending on Josh's policy, this can last his lifetime and help provide money for final costs when the time comes or be another source of savings and income down the road.

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  • Selma

    Working single parent of two

    Age: 35, 9-year-old twins

    Yearly household income: $40,000

    Protecting financial health Although Selma has health insurance at work, she realizes it wouldn't be enough to cover out-of-pocket expenses if one of her boys were to be seriously injured during one of their football games. Adding supplemental health insurance helps her prepare for extra out-of-pocket expenses like ambulance transportation or specialized physical therapy the group health insurance may not cover. And if she happens to be injured or ill, it may even help cover nonmedical living expenses like the mortgage, car payment or groceries.

    Preparing for the future As the sole caretaker of her twin boys, Selma understands things can change on a moment's notice. She needs to know her boys are in good hands if she passes unexpectedly. She has planned that her parents will raise them, but she doesn't want the twins to create a financial burden. Term life insurance allows her to make affordable monthly payments on a policy that will provide money for the boys' care after she is gone. Plus, she has the option to convert her policy to a permanent policy.

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  • Beth and Zack

    Parents of two

    Age: 30, 34, 7, 5

    Yearly household income: $85,000

    Preparing for the future When her grandfather was diagnosed with Alzheimer's, Beth was devastated. What upset her even more was seeing her grandmother struggle to care for him and manage household finances by herself. Beth doesn't want to put her family in that same position, so she and her husband took out a permanent life insurance policy. This choice gives them an extra safety net if they need money even before one of them passes away. They can borrow against its cash value to pay for long-term care or even their kids' college tuition if needed.

    Staying out of debt Beth worried about how her grandmother would survive financially after her grandfather Arnold was diagnosed with Alzheimer's. If he were to pass away unexpectedly or be entered into long-term care, she wouldn't have enough income. So Beth learned from her grandparents' situation and purchased an annuity. It will give her family the income they need to keep up with daily expenses in case Beth or her husband ever enter long-term care or pass away.

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Consider these tips to avoid a financial emergency.

There are many options when it comes to life insurance. There is term life insurance that can cover you for a set period of time, or permanent life insurance that can last a lifetime. Start with a personal LifeTrek and see what may be right for you.

  • Consider supplemental health insurance
  • Protect family with life Insurance
  • Can you afford to miss work if you are critically ill or injured?

    You have health insurance, but it doesn't cover everything. And it certainly doesn't cover costs to pay for daily life if you're in a severe accident. Do you have a prescription for your financial health?

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  • Supplemental health insurance can help fill coverage gaps such as co-pays, deductibles and nonmedical care (e.g. transportation and nonmedical housing).

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  • Supplemental health insurance can give you peace of mind

    1. 1. Examine your current health insurance to determine what gaps might need to be filled.
    2. 2. Determine whether you would need supplemental income to pay for daily living if you were unable to work due to injury or critical illness.
    3. 3. Consider what you can afford in monthly premiums.

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  • Can you afford supplemental health insurance?

    Payments can start as low as $20 per month. Adding more coverage would increase your payments, but it can also be a simple way to help keep you and your family financially secure.

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  • What will happen to your family if something happens to you?

    You work hard to keep them safe and provide a home where memories are created. Yet the unthinkable could happen and your family could face life without you. Find out how you can make sure they'll be taken care of.

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  • Life insurance can't replace you, but it can help cover expenses left behind

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  • Protect your loved ones with life insurance

    1. 1. Determine how much financial coverage is needed to support your family.
    2. 2. Decide the length of time you want your family protected.
    3. 3. Consider what you can afford in monthly premiums to fund your policy.

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Things To Think About

What Financial Documents Are Critical to Help Protect My Family?
Don't wait until an emergency happens to start getting your affairs in order. Start with these key documents:

1. Will. If you have children, a will is an absolute must. If you and your spouse were both to pass away, this is the document that will say who you want to become their legal guardians. A lawyer can help you draw up your will, or you might consider using a will-making computer program. Once you have the will, take a look at it every few years and update it whenever there's a significant change in your life, like marriage or divorce, a new child or a change in your preferences.

2. Living Will. A living will can clearly explain to hospital staff what sort of medical treatment you want if you're terminally ill or can't communicate on your own. Say you had a life-threatening health problem and were rushed to the hospital. They would provide you with a form like this to fill out, but if you were unconscious you wouldn't be able to. It's really important to have this document ahead of time.

3. Durable Power of Attorney. This document makes the person named in it your "attorney-in-fact" and gives them permission to make legal and financial decisions in your place. Just like with a will, this is an incredibly important document.

4. Emergency Information Sheet. If something happens unexpectedly, this will give all the information someone needs to contact your family, find your other key documents, and take care of the things that need to be taken care of. Include names, phone numbers, and addresses of your doctor and your hospital. Label the information sheets clearly.

Life insurance issued by Allstate Life Insurance Company, Home Office, Northbrook, IL; Lincoln Benefits Life Insurance Company, Lincoln, NE. In New York, Allstate Life Insurance Company of New York, Hauppauge, NY.

Please note that Allstate Life Insurance Company or its agents and representatives cannot give legal or tax advice. The brief discussion of taxes on this page may not be complete or current. The laws and regulations are complex and subject to change. For complete details consult your attorney or tax advisor.

Partial withdrawals and surrenders from [life policies] are generally taxed as ordinary income to the extent the withdrawal exceeds your investment in the contract, which is also called the "basis". In some situations, partial withdrawals during the first 15 policy years may result in taxable income prior to recovery of the investment in the contract. Loans are generally not taxable if taken from a [life insurance policy] that is not a modified endowment contract. However, when cash values are used to repay a loan, the transaction is treated like a withdrawal and taxed accordingly. If a policy is a modified endowment contract, loans are treated as a taxable distribution to the extent of policy gain. Loans, withdrawals and surrenders are treated first as distributions of the policy gain subject to ordinary income taxation, and may be subject to an additional 10% federal tax penalty if made prior to age 59 ½. Loans, if not repaid, and withdrawals reduce the contract’s death benefit and cash value.

Distributions taken prior to annuitization are generally considered to come from the gain in the contact first. If the contract is tax-qualified, generally withdrawals are treated as distributions of gain. Withdrawals of gain are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty.

Any annuity payment is dependent on the ability of the issuer to pay its claims. An annuity may impose charges (including but not limited to surrender charges, mortality and expense risk charges, administrative fees, underlying fund expenses and feature charges) that can reduce the value of your account and the return on your investment.

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