Long term care insurance is designed to help protect the elderly against the high cost of senior care. It is an insurance product, like health insurance, and the benefits occur as you pay into the policy.
There are some definite plusses to having an LTC insurance policy. However, this is a complicated product and might be intimidating for some.
First, know that not all policies are the same. Some will cover all of the needs that you have, some will cover a specific dollar amount in care needs per day. Some will extend for as long as needed, some will only cover a certain number of years. It’s very important that you understand the policy that you are getting and that you are happy with the coverage you are getting.
Typically, the annual premium paid per year for long term care insurance goes up as you get older. It goes up in a manner that can make opening a policy when you are 30 cheaper over the long run than if you were to open up a policy at 60. However, 30 year olds don’t tend to have the same financial means–or the foresight–to make purchasing a policy like this affordable. Add into things the possibility that a policy will never be implemented, and purchasing something so early on in life can seem very unappealing.
Long term care insurance can be really helpful for some people, but it’s not in everyone’s best interests. I remember once speaking with a wealthier man who was getting started planning out his retirement and the conversation turned to long term care insurance. He stated that the cost of long term care insurance was unnecessary because he didn’t foresee the cost of care putting a dent in his wealth. In his case, the expense of long term care insurance was not guaranteed to be a wise investment. At that time, only about 50 percent of all seniors would require long term care at some point in their lives. He was making a calculated move with his money.
Now, the rate of seniors that will necessitate senior care at some point in their life has gone up slightly. However, the math behind long term care hasn’t changed. Some people will benefit from having a policy, some won’t.
Where you fall needs to be determined by working with a reputable insurance agent or senior care expert. It also comes down to what your risk tolerance might be. Some people are quite content to play the odds, some people want all contingencies covered–just in case. Your needs will likely be different from other people’s. It’s important to talk about this with a professional to help get a feel for where you fall on the spectrum of needs.
If you’re just starting out on your senior care journey, insurance is probably one of the big questions you have on your mind. You probably have a lot of other questions, too. Our senior care professionals have the answers–or at least know where to point you to find the answers. Give us a call today to get your free consultation session scheduled.
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