Long term health insurance and why you should buy it

Most people have a love-hate relationship with insurance, but especially long-term care insurance. If you love your family, you want to protect them with life insurance, homeowners insurance, auto and health insurance. There is a 1 in 1,200 chance that your house will burn down, a 1 in 240 chance that you will be involved in a car accident, a 1 in 15 chance that you will incur major medical expenses, and a 1 in 4 chance that you will will result in a long term care bill.

Long-term care insurance can be pricey precisely because it covers large expenses. Long-term care is the most catastrophic financial risk you face. And that’s why insurance protection is so important. Many people mistakenly believe that long-term care insurance is too expensive. In contrast to what? As opposed to $6,000 a month in a long-term care facility. Compare a monthly premium of $200/month to the cost of $200/day in a long-term care facility. Long term care insurance is a bargain by comparison.

Unexpected and unplanned long-term care needs can alter a comfortable retirement. Where will the funds come from to pay for the long-term care and still maintain the lifestyle for the other spouse? What if a partner gets injured and can’t work? How long can a family continue to pay for care and still maintain a reasonable lifestyle.

It’s easy to put things off or “bury your head in the sand” and say it will never happen to me, but statistics from the U.S. Department of Health and Human Services estimate that 70 percent of Americans who are 65 years old or getting older, will need some sort of treatment. of long-term care services. You are the only one in control of your own destiny with sound long-term care and retirement planning.

Here are some key questions to ask yourself as you think about retirement, aging and the ability to care for yourself as you get older and more frail.

1. Where would you like to receive your care? Do you want to stay at home?

2. Do you have family that is willing to provide free care? Can they leave their job or family behind? Do they live nearby?

3. Are you healthy enough to qualify for long-term care insurance?

4. Do you want to protect your wealth and your lifestyle when you retire?

Purchasing long-term care insurance is a personal decision. It is important that you are able to pay the monthly or annual premiums even when you retire. It is important to get educated and speak to a long-term care specialist. Long-term care specialists have additional training and receive long-term care planning designations (CLTC and LTCP). With the help of specialists you can find the right insurance for you.

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Finding the right insurance:

o Only buy from a company with the highest rating

o Don’t buy more than you need (it should be personalized to you and your situation)

o Enlist the help of a long-term care specialist who represents the top carriers

o See if there is a “Partnership” program in your state

The six main factors that will have the greatest impact on the cost of your policy are:

1. Elimination Period

2. Your age/health

3. Benefit Period

4. Daily Benefits

5. Inflation Riders

6. Marital status