Long Term Care Insurance
The Right Age For Long Term Care Insurance?
The answer is: before you need it!
A long term care event could seriously affect your life–not just emotionally, but also financially. One thing is certain, though; with solid planning, including Long Term Care (LTC) Insurance, you can be better prepared to assume the risks of living a long and full life while protecting assets valuable to your family or business–no matter what comes your way.
Long Term Care Insurance Benefits
In general, private home care is expensive. Medicare typically only covers certain long term care, and it has certain limitations and options.
LTC Insurance typically covers the cost of the following:
- Help in your home with daily activities like bathing, dressing, transferring, and eating.
- Community programs, such as adult day care.
- Assisted living services that are provided in a special residential setting other than your own home. These services may include meals, health monitoring, and help with daily activities.
- Visiting nurses.
- Care in a nursing home.
When Should I Buy Long Term Care Insurance?
While LTC Insurance may not be appropriate for everyone, the increasing costs of healthcare combined with the fact that people are living longer these days, means that most of us will need to stretch our retirement savings over decades. So, the best thing to do is to have a plan that provides for long term health care–sooner, rather than later.
Until you reach your 50s you’ll probably never give LTC Insurance much thought, but then you begin to notice things around you and that’s when it sinks in.
- Your 50s The golden years. The kids are grown; you are entering retirement; maybe you’ve even paid off your house. Whether through personal family experience or from the experience of friends, you’ve seen how the need for long term care can tap a family’s resources. As difficult as it can be, it’s time to think about long-term care insurance yourself and have the conversation with your spouse or loved ones. You will want to consider any health problems you have, how long your relatives tend to live, and any assets you plan to leave to heirs. Just as important is the fact that it is also time to consult a professional about the many options for long term care and how to fund it. At this age, policies can be affordable and can bring peace of mind once these risks are covered.
- Your 60s This decade is when people usually look into purchasing LTC Insurance. The older you get, the greater the risk that you will have health problems and become uninsurable or a long-term care insurance policy will be more expensive. If you wait until you are in your 70s, you may face insurability and affordability issues.
- Your 70s While it may be very expensive to buy LTC insurance at this stage, consider the cost of needing long-term care versus paying a premium for a policy. You’ll find that premiums for LTC Insurance are still less than paying for long term care. Consider this: for a 70-year old man or woman, the average long term policy may cost anywhere from S10,000 to S15,0OO a year. This is a $200 a day, lifetime benefit standard rate policy. Compare that annual premium with the average cost of long term care expenses. In California the average cost for long-term care can be anywhere from $75,000 to $100,000 a year! So while the annual long-term care insurance premiums certainly aren’t inexpensive at this age, LTC insurance can give you the coverage you need at a significantly smaller cost than self-insuring, allowing you to safeguard a lifetime of hard-earned money.
Let’s Discuss Long Term Care…Today
Let us help you understand and protect all of the risks you run and all of the perils your business faces–without Long Term Care Insurance. A well thought out and executed plan can give you peace of mind. Contact us today!
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