Benefits of Long Term Care Insurance

| July 2, 2013
Long Term Care Insurance

Long Term Care Insurance

Long term care is a topic very few retirees want to consider. But it?s one possibility or even inevitability to consider, given the physical difficulties that come with aging or the chronic illnesses some of us acquire as we grow older. Most people prefer to live with their relatives should such a situation arise, but even then the costs for medical equipment, medicines, and other health care specific needs would arise. Not only will your retirement fund be depleted, but also your children?s savings for their house or for your grandchildren. If you want to ease your family of such a burden, consider getting long term care insurance, because costs are on the rise.

Long term care insurance is a practical policy that lets you pay premiums for several years before the actual need for a nursing home or assisted living arises. By getting an affordable long term insurance plan, you not only control how much will be spent in the present but also invest in your health?s future. Long term care insurance policies usually have you pay the daily fee for a nursing home within specific periods. It?s now a question of how much you?re willing to pay given the time specified by the policy. Financial advisers recommend only paying for between three to five years of a stay, or about 25 to 50 percent of the future costs. It is not practical to pay 100 percent of the future costs as you have yet to see how long you?ll need the nursing care or home facilities. You also want to protect a good portion of your retirement fund and savings for your relatives.

One should note, however, that long term care insurance is not for everyone. Your assets and savings should still be protected and kept as you shelf out a portion for the policy. If your assets are below $100,000, then no insurance company will recommend the long term care plan. Instead you can go to Medicare to pay for any nursing care or aid costs. Now you might think, well why can?t those who can afford insurance go to Medicare? Contrary to popular belief, the government fund only provides for individuals who are poor. If your assets are high and your net worth between $200,000 and $2 million, then Medicare won?t bother helping you. A private insurance company, however will find ways for your to invest enough into health care but without depleting you of all your assets.

Consumer expert Howard Clark has several recommendations for anyone that wants to get long term care insurance. Look for companies with an A++ rating by AM Best. This assures you of financial stability within the company. He also stresses getting the plan from your late 50s to 60s; this lets you pay a larger amount but within a shorter time from the time you?ll need assisted care. You may also want to consider talking to your parents about this plan. You can both invest in the policy so that it isn?t a burden to both parties in the future.

Benefits of Long Term Care Insurance

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