Help Safeguard Your Family’s Finances

(Family Features) Every year, millions of American workers enroll in employee benefits through their workplaces during a period known as annual enrollment. It's usually a short window of time, but employees make crucial financial decisions for their families for the coming year.

In addition to medical insurance, many employers offer a range of voluntary benefits - those you select and pay for yourself, often by having the cost deducted directly from your paycheck. These voluntary benefits can help bridge the gap between what health insurance covers and what you're financially responsible for, especially as more employees opt for high-deductible health insurance plans.

In fact, according to a poll of 1,512 full-time U.S. workers conducted by employee benefits company Unum, 49% of working adults plan on enrolling in a high-deductible health plan for the coming benefit year, with Millennials (58%) and Gen Z'ers (54%) at even higher rates.

"While high-deductible health plans offer lower monthly payments, that can mean more financial responsibility for policyholders when they need to use the benefit," said personal finance expert Laura Adams. "Combining a high-deductible health plan with a health savings account can offset out-of-pocket costs, but it's also a good idea to consider voluntary benefits like disability, accident and hospital insurance to further financially protect your family."

If an accident, illness or injury prevents you from working, disability insurance replaces a portion of your income. While it may seem unlikely to many they would ever experience a disability, it's more common than some realize. Based on 2019 information from the Social Security Administration, more than 1 in 4 of today's 20-year-olds will become disabled before reaching age 67.

Accident and hospital insurance can pay a lump sum directly to you to offset out-of-pocket costs associated with medical care often not covered by health insurance.

• Accident insurance can provide financial benefits for urgent care and emergency room visits, ambulance and other transportation to the hospital, initial care and surgery, hospital stays and lodging expenses related to an accident and even follow-up care such as doctor's visits and physical therapy.
   
• Hospital insurance can pay a benefit directly to you when you are admitted to the hospital. This could include immediate medical costs and travel expenses or to help cover other bills.

Voluntary benefits, policies and details vary, so it's essential to review your options and discuss with your family before your benefits enrollment begins.

"Investing a little additional time on the front end can help reduce your family's financial risk down the road," Adams said.

For more information about employee benefits, visit Unum.com/benefits.

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Why Everyone Should Plan for Long-Term Care

(Family Features) Research suggests that most Americans turning age 65 will need some form of assistance with everyday activities, known as long-term care, as they grow older. The amount of care needed will depend on many variables, including overall health, cognitive functioning and home environment.

Age is a strong predictor of the need for help, and because women live longer on average, they are more likely than men to require long-term care. Factors such as a disability, injury or chronic illness also increase the chance that long-term care will be needed.

Three simple steps can help you start planning for care you may need as you age.

1. Know what to expect
Most people know they should save for retirement, but many don’t know exactly what expenses to expect. An often overlooked area is long-term care, a broad set of supports for everyday tasks like dressing or eating. While most of this care is provided by family members and friends, sometimes older adults and their families get these services from providers like home health aides, area agencies on aging or residential providers such as assisted living or nursing homes.

Understanding long-term care is the first step in creating a plan. Key things to know include:

• A person who lives alone is more likely to require long-term care than one who can rely on a spouse or partner for help with daily tasks.
• Long-term care is expensive and represents a major uncovered risk to your retirement savings.
• Medicare does not pay for long-term care services or supports with some minor exceptions. Neither does your employer-based health insurance or Medigap.
• Most people prefer to receive long-term care at home; their odds of doing so may be improved by making home modifications to reduce the risk of falls.
• Many Americans say they do not want to rely on their children for care, but a lack of planning for paid care often leads to exactly that result.

2. It’s not just about you
A choice to plan or not plan will likely have a big impact on family and friends who may also be informal caregivers. Statistics show that most long-term care is provided by family members or other loved ones.

Take the time to make clear your preferences for what kind of help you value most and where you want to receive it. Family and friends will feel better knowing that you are thinking about your needs – and theirs – by planning for long-term care.

3. Better active than reactive
Be proactive. Staying at home is great, especially if it has been modified to help you avoid an injury and continue to care for yourself. However, it won’t happen without taking steps to ensure you can get the supports you need at home. Start thinking about ways to maintain your independence, safety and care needs.

For more information and resources to develop a care plan, visit longtermcare.gov.