There are several types of insurance. Some of them—like life insurance—are somewhat straightforward. Yet, even in life insurance, there are many things to consider, like term vs. whole life. Other types of insurance, such as fixed indexed annuity contracts, might require even more explanation. You can buy insurance for your car, home, boat, or business. You can also buy insurance for things like needing long-term care in retirement, liability insurance for your business, disability insurance for your profession, and Medicare gap coverage.

Other types of insurance include things like long-term care insurance (LTC) or disability insurance. In the case of LTC, not everyone has savings to cover the cost of nursing-home care, home-health care, or personal or adult care for people ages 65 and up. Some people fear facing a debilitating or chronic condition in retirement that depletes their savings and affects their legacy plans for their family. One option these people might have is “long-term care” insurance. Such policies offer more flexibility and options than public state or federal programs in the U.S.¹ People who have long-term care insurance, sometimes known as LTC insurance, have options when it comes to covering the high cost of these facilities.

Nursing facilities charge, on average, $150 to $300 a day, or $80,000 a year.² Three visits per week from custodial or home care visits can run more than $9,000 a year.² Many LTC policies offer a dollar-per-day arrangement for time spent in a nursing facility (or for in-home visits). Professionals often suggest shopping for LTC insurance between the ages of 45 and 55. This is a strategy to attempt to defray those costs in retirement.

For disability insurance, you’re insuring your income, in the event you’re not able to work because of an accident or illness. You’re providing a stopgap measure to help your family stay afloat through potentially difficult times. There are also many more types of insurance than even these options.

People often talk about insurance as “protection,” but it’s really a form of risk mitigation. It ensures that, no matter what twists and turns come with life, clients don’t face their risks flat-footed. Nothing can protect you from risk. However, with a thoughtful, proactive, and detailed insurance plan (as part of a comprehensive financial plan), you may find yourself with more options than you would have had without insurance.