Whether or not to include insurance policies in your estate plan depends, in large part, on your financial situation and what your concerns and goals are for your estate plan. Some people choose to include numerous insurance plans because they simply cannot afford not to include them. Others have significant savings and assets and decide that investing in various insurance plans is not cost effective. Only you and your estate planning attorney can evaluate your situation to decide what is best for your plan, but understanding some of the more common types of insurance people do include in their estate plan can help prepare you for your discussion with your attorney
Disability Insurance — As the name implies, disability insurance replaces your income if you face a short or long term disability. Although Social Security Disability covers some disabilities, do not count on it to cover a short term disability or to cover all types of disabilities.
Critical Care Insurance– Used frequently in other countries, this option is very new to the United States. It pays a lump sum when you face a serious medical emergency such as a stroke or heart attack. It may be hard to find but there are a few companies that offer it in America.
Long Term Care Insurance — If you must spend an extended period of time in a long term care facility, this policy will cover the cost. A single month in a long term care facility can easily run over $5,000 and most health insurance policies do not cover it.