INSURANCE PLANNING BASICS, PART II

This chapter examines annuities, disability insurance, long-term care insurance, and property and casualty insurance. An annuity is a type of insurance contract that provides protection against the economic loss of living longer than retirement expectations. In terms of economic loss, the impact of a disability is potentially greater than death in its effects on an individual or a family. Long-term care insurance is designed to provide coverage for the necessary costs of care and may include personal and custodial care in a variety of settings, be it home, a community-based organization, or other facilities. Property insurance provides for losses to the named insured's property. Casualty insurance is the liability section of the contract and provides protection for the named insured against the claims of others. The chapter discusses three types of property and casualty insurance—homeowners insurance, personal automobile insurance, and umbrella liability insurance.