Why buy long term care insurance
Many boomers struggle with the issue of purchasing long term health care insurance. They often ask themselves, “Why buy Long Term Care Insurance?” Does the cost justify the benefit? For those that are on the fence, here are some reasons that you want to want to consider the coverage. And, if your still undecided, I’ll be sure to have some follow up posts discussing the benefits of long term care insurance.
1. It will help you keep your independence.
By having the coverage, you still have your dignity and the ability to make choices. When the time comes for paying for your long term care needs, you may end up spending all of your savings. At that point, you may be able to qualify for Medicaid to help pay for your care in a nursing home or in a supportive living facility. Many people want to stay at home, but with Medicaid, you may not be able to. Long term care insurance allows you to have a choice of where you want to live.
2. You May Have to Pay for an Outside Caregiver
If you something happens to you, will your spouse be able to care for you? If not, they’ll have to hire outside help. The cost is likely to come up from your combined income and assets. This may leave your spouse with minimal funds in the future. Long term care insurance solves this problem and allows the healthy spouse to keep the assets.
3. Healthy Care Giving Spouses Won’t Spend Their Money
Instead, they often choose to “tough it out” on their own without help. If care of a disabled spouse drags on too long, this can have a devastating effect on the physical and emotion health of the caregiver spouse. Insurance will pay for professional care for the disabled spouse and allow the caregiver spouse needed rest.
4. Do it For Your Children
If your children promise to take care of you when the time comes that you need care, long term care insurance will help them do that. Probably neither you nor your children have thought of the prospects of moving your from place to place, changing your dirty diapers, cleaning up after “accidents” in the bathroom, or helping you with bathing and dressing. Insurance will pay for aides to help your children with these tasks.
5. What if You’re Single
If you are single and a need for long term care insurance arises, insurance can pay for and coordinate that care. With long term care insurance you won’t have to feel you would be a burden to your family and friends.
6. Desire to Pass On
Lastly, if you have a desire to leave assets behind when you die, long term care insurance will help preserve those assets from the cost of long term care.
Be sure to stay tuned for more posts discussing the benefits of purchasing long term care insurance.
{ 1 trackback }
{ 7 comments… read them below or add one }
Let’s talk about #4. Somehow I just can’t see my daughter changing my dirty diaper.
It has been mistakenly called “nursing home insurance”. I read recently that less than 37% of claims on long term care policies are for nursing homes. More than 63% of claims are for home healthcare and community care.
The funny thing about long term care insurance is that the price of a policy can vary a lot from one insurance company to the next. Each long term care policy has a different way of charging premium based upon health history, marital status, choice of benefits, and even state of residence. It pays to shop.
What most people don’t realize is that group long term care insurance policies are usually more expensive and have less benefits (particularly less benefits for home healthcare) than individual policies. It pays to shop and compare all types of insurance, but especially long term care insurance.
Scott A. Olson
http://www.LTCInsuranceShopper.com
Good advice. May I suggest that those interested in more indepth information (especially some great ways to reduce the cost) visit the American Association for Long-Term Care Insurance’s Consumer Information center (AALTCI is the national organization).
Click here: http://www.aaltci.org/long-term-care-insurance/
Knowledge is buying power!
Jesse Slome, Executive Director
American Association for Long-Term Care Insurance
http://www.aaltci.org
Good advice that I know most people don’t think of. I am in my 30’s and this has never even crossed my mind. When do you consider a good age where this should be considered?
Money Beagle’s last blog post..Good Thing For Savings
There’s no “best age” to purchase long term care insurance. The only time someone should purchase it is if they have enough income or assets to lose to justify the cost of the premium. Additionally, there are higher financial priorities that should be taken care of before one even considers long term care insurance.
Obviously, having good medical insurance is most important. If you’re not yet able to retire, long-term disability insurance is the next highest priority (to help replace your income if you’re not yet able to work.) Thirdly, if you have dependents (children and/or a spouse/partner) who rely on your income, then adequate life insurance is the next highest priority. Lastly, if you’re not able to adequately contribute to your IRA’s/401k each year, then you should not be considering long term care insurance yet.
But, once those issues are in place, then one should seriously consider long term care insurance (regardless of their age), ESPECIALLY if they are married.
Scott A. Olson
@Money Beagle
Thanks for the kind words. Trust me your definitely not alone as far as not thinking about it. Being in your 30’s, that’s okay. If you can make yourself do it, long term care insurance is very affordable in your mid to late 40’s. It’s more commonly purchased in the 50’s to 60’s. I’ve tried to do some research as far as break even points, but it’s such an evolving issue, that has been difficult. Generally, I would say to look at purchasing it sometime in your 50’s, so you’ve got plenty of time
I have to differ with the term “break even” and the many people that use it (which only prompts more people to say “that’s right, what is the break even point?”
One would never ask what the break even point for owning car insurance or homeowner’s insurance is. The term break even fosters a thought that this is an investment product into which you place money anticipating getting it back.
In the end, it is insurance and like all insurance products (if you really think about it) you really DON’T want your money back. You are always a whole lot better off if you never use it and let the other poor sufferer benefit from your pool of premium.
The best time to buy long-term care insurance is when you can still health qualify, have the funds to protect and to pay for this protection. If that’s your 50s (which is generally the best time) then what you are doing is “maximizing your buying power” … and that’s the best you can do.
Jesse Slome
American Association for Long-Term Care Insurance
http://www.aaltci.org http://www.aalitci.org/long-term-care-insurance/