Avoid Mistakes in Buying Long-Term Care Insurance
AUTHORED BY JAN LEVINE, LICENSED INSURANCE PROFESSIONAL NIPR 17539200
Do You Need Long-Term Care Insurance?
Statistics indicate that over 70% of all single people over age 65 and 90+% of all married couples, will require long-term care.
In fact, the most current research statistics are below:
> The average duration of long-term care for men is 11 months, while the average duration for women is 17 months.
> Females face a 58% probability of having at least one nursing home stay, compared to 47% for males.
> The probability of needing more than one year either at home or in an assisted living/ nursing home: men 22%, women 36%.
AARP offers this advice:
Long-term care insurance makes sense for those who earn good salaries, have accumulated assets they want to protect and have planned for a comfortable retirement.
TheStreet.com Ratings says households with annual income of at least S50.000 to $75,000 and assets of $150,000, not including a car or house, should consider a policy.
Two Important Reasons to Get Long-Term Care Insurance
1> If you get sick and need help, who do you think will bear the burden?
If you're married, you could turn your spouse's life upside down.
You could also jeopardize a comfortable retirement.
If you're single, your kids may get the burden.
They may feel obligated to help you and try to manage assisting you into their already over-worked schedule.
Or, you could deplete your assets-money that would otherwise have gone to your heirs.
Therefore, it's important to realize that a major reason to get long-term care insurance is to protect your family.
2> Preserving your independence.
Do you want your children helping you with your bathroom needs or to dress you?
Do you want family members deciding how to spend your assets for your care?
Insurance provides a separate asset that can be used for your quality care.
Whether for care inside or outside your home, insurance could help you to preserve your independence.
What Does It Cost?
The cost can vary widely depending on the company you choose and the coverage you choose. For example, one company may charge more for inflation protection, while another may have a lower charge for inflation, or they may charge more for home care.
Therefore, the first step is to decide on the coverage you want, then quotes can be obtained from several companies to find the best quotation for the coverage you desire.
There are several important items in choosing coverage that can be covered in detail during an in-person meeting.
This will also include policy details that are most often less than $100/month that can provide 2 years of In-Home coverage.
When Should You Get Long Term Care Insurance?
Assuming that long-term care protection is needed, you may want to buy this coverage as soon as possible.
1> The longer you wait, the more expensive it gets
2> It is MUCH more important to get it while you are STILL healthy….as later---may be TOO late!
It is best to start a policy early because the premiums are typically lower. Most importantly, the reason to start with insurance early is so that you can qualify for coverage.
As you age the risk of adverse medical conditions becomes greater, therefore you run the risk that you may not qualify for insurance.
As you age, you may develop medical conditions and notations in your medical records that can make you uninsurable.
While it would be ideal to have complete coverage (inflation protection, lifetime coverage, at least S300/day benefit), it is better to have at least a basic policy than to have none at all.
In other words, a minimum policy is better than being uncovered for the high cost of long-term care.
Jan Levine represents Bankers Life Insurance, a 146 year old company that is the national leader in polices written.
Jan can be reached at :
Or call him directly at 704.668.7922
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