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But Wait, There’s More!
Insurance Overload

APEF: Solving the Financial Illiteracy Crisis

Navigating the complex world of insurance can be a tricky journey for anyone- even adults.  We’ve already discussed your typical forms of insurance, but now we’re going to take a deeper dive into different forms of coverage. (Stay with me here!) Each element, from life to viatical insurance, has its own special purpose and coverage structure - as part of this overview, we’ll untangle many more types of coverage, giving you all of the knowledge required to make informed decisions that reflect your future financial goals. Understanding all these options provides a basis for making smart financial choices throughout life's (unpredictable) journey.


Life insurance acts as a financial safety net, and helps ensure your loved ones will remain financially supported should something happen to you. It can cover funeral costs and outstanding debts (such as mortgages or loans). Life insurance policies provide a lump sum known as the death benefit to beneficiaries listed on your policy, should your death occur. 

Covering yourself financially can be especially important if you have dependents who count on you or if you have a large amount of debt.


Viaticals provide a special type of financial assistance for individuals who get the devastating news of being diagnosed with terminal illnesses. By selling a life insurance policy to a third party, policyholders can receive a lump sum that can be used for medical costs, quality of life improvements, or any immediate needs.


Guaranteed income insurance, which is often associated with annuities, offers a secure stream of income during retirement, helping ensure financial security and continuity after someone stops working. GIII policies offer regular payments either for an agreed-upon set period or a lifetime period (depending on your policy terms), making this type of protection ideal for anyone wanting an additional source of predictable income in retirement to supplement savings accounts and investments.


Long-term care insurance helps cover costs associated with extended medical care that may not be covered by health insurance, such as nursing home care, home health care, or assisted living facilities. This type of coverage can help individuals manage expenses related to chronic illnesses, disabilities, or cognitive disorders by providing financial support for ongoing care costs.  Long-term care insurance is particularly relevant for those worried about their potential future healthcare needs and associated costs.


Disability insurance provides financial security by replacing income lost due to a disabling injury or illness, providing partial or full salary replacement, and helping maintain a standard of living. For many people, this type of coverage is necessary to protect them from sudden financial impacts caused by unexpected disabilities that stop them from being able to work and provide for themselves or their families. 


Indexed universal life insurance provides potential for cash value growth through investments. By combining death benefits and cash value accumulation into one policy, this type of insurance offers potential for long-term growth of wealth through savings accounts. Death benefits are provided directly to beneficiaries while part of each premium payment goes into an investment account that can be invested into stock market indexes.


Liability & Umbrella Insurance protects individuals against financial loss caused by liability claims that exceed the coverage limitations of basic policies, as well as providing extra asset protection should a lawsuit arise. Those who possess significant assets, or those working jobs with higher liability risks should consider purchasing this form of protection. So stand under my umbrella, ella ella eh eh eh (Not a Rhianna fan? Ok cool moving on.)


Accidental & Dismemberment insurance provides financial benefits in the event of accidental death, dismemberment (yikes), or specific injuries. It covers either lump sum payments or ongoing benefits in cases of accidental deaths as well as loss of limbs, eyesight loss or any other specific injuries. This type of insurance is supplementary protection (an extra) to standard life insurance, specifically providing cover for unexpected accidents that might occur.


Insurance is ever-evolving, with options tailored to address all sorts of life's unpredictable realities. Getting familiar with all of these options will equip you to navigate the complexities of adulthood, make informed decisions, and adjust quickly when life takes an unexpected turn.  As you grow up, understanding insurance becomes even more essential in developing financial responsibility and security in an ever-changing world.

Soft skills refer to a set of personal attributes, behaviors, and social attitudes that enable individuals to interact effectively with others in a workplace or social environment. These skills are essential for building healthy relationships, communicating effectively, solving problems, and collaborating with others.

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