All across the United States, people who are looking for long term care insurance are finding something disturbing: the cost of purchasing a long term care policy are going up quickly.
Thirty years ago, these products were quite cheap–and very helpful. As the population ages, insurance companies need to raise their prices to secure profits and avoid losses. The end result is that insurance has become so expensive that some people actually lose money when they use their policy. Others have been completely priced out of the market. No one really benefits when this happens.
One of the old adages that money managers tend to tout around is that you should purchase long term care insurance only if you have expendable income and you are in decent health at age 60. However, because of the quickly growing population of senior citizens and because of the increase in life expectancy, this advice is not always beneficial. Seniors are finding that if they take this advice, long term care insurance ends up being much more expensive than what they were prepared to pay.
In fact, prices for insurance are going up faster than the actual cost of health care in some markets. This may be a way for companies to recoup past losses, or it could be an indicator of even greater changes ahead. Either way, long term care insurance is not as helpful as it once was for most people. It makes paying for care tougher.
Is long term care insurance right for you? It can be, but not necessarily. It seems like the benefits of using long term care insurance are disappearing. This isn’t a universally applicable answer, though. What’s right for one person isn’t necessarily going to be the best solution for everyone. Insurance is like care itself in that respect. If you have questions about insurance and how it might be helpful to you and your family, please get in touch with a licensed health insurance agent that you trust. It’s important that you go with a trusted agent because some insurance specialists have been known to recommend more expensive products because it gives them a bigger pay day. This practice is illegal, but it’s hard to detect. A trusted agent will help you to avoid this issue and better evaluate which products will be effective and cost efficient.
Care and insurance can be overwhelmingly complicated at times, and rising costs don’t help any. Be sure to educate yourself and speak to a few different professionals in the field before you make any sort of commitment. When care and insurance line up well, the end result is smooth senior care. That’s our goal for you and your family.
As always, if there’s anything we can do on our end please feel free to get in touch with us. One of our fully trained caregivers will help answer your questions and get you pointed in the right direction. Our consultations are completely free and come with no obligation on your end.
Good senior care is out there. We can help you find it.