Caring for an older relative? Running the numbers on Long Term Care Insurance

When Jennifer first noticed that her aging father, Bob, just wasn't acting right, it was at a family dinner to celebrate the graduation of her daughter from high school. Bob had forgotten a trip they took last Summer to the lake together and generally just seemed lost or out there. So, when she got a call a few months later that her father was found wandering around the neighborhood in the middle of the night, she was worried. A diagnosis of dementia was given and there was a strong chance it could progress to Alzheimer’s. Bob would need near-round-the-clock care. Luckily, Jennifer discovered that before her mother died, the old couple had prepared for this eventuality and had purchased a Long Term Care Insurance policy. She was now left to peruse the policy and find out just how much coverage was available and was it enough to pay for the assisted-living facility they had found nearby that could take Bob.

Jennifer’s situation is all too common as the baby boomer generation moves into retirement and Americans are living much longer than before. Jennifer was lucky, her parents had a generous policy with a per day benefit amount of $225 and only a 20-day elimination period, which is functions essentially like a deductible does in other insurance policies. It’s the amount of time you can wait before benefits kick in. So, Bob only had to stay with Jennifer and her family for a few weeks and then he was admitted to the assisted-living facility. This was good as Bob, a retired aircraft engineer, had substantial assets and savings that he had hoped to pass on to his only child, Jennifer, and he could rest assured that he would be able to do that as he was covered for his long-term care needs. Many Americans, however, are not in such a comfortable position.

Running the numbers on Long Term Care Insurance, whether you need it or not, how it works, how much coverage to get and other important questions, can be challenging for most Americans. In the first instance, most of us don’t even like to think about having to someday need long-term care. It means we had to admit that there is a possibility, a 2 out of 3 Americans possibility, according to the Department of Health and Human Services, that you’ll need some form of long-term care after age 65 or in retirement. Most people are startled by that statistic and feel compelled to do something about it. But, Long Term Care Insurance is not a well-known form of insurance and is difficult territory to navigate, even if you aware of it. The language in policies is complicated and the options many.

The reality is that for most people, Long Term Care Insurance makes sense and is a sensible way to insure that you end up like Bob, able to get the care you need without exhausting your lifetime of savings and assets or being a burden to your children or other family members. At LTC Tree, we’ve helped many Americans calculate their risk and needs and design a policy that is right for them and their family. Long Term Care Insurance is not as expensive as you think, depending on your age and health status and can give you the peace of mind you need to prepare for your retirement years.

Whether you’ve done you’re research and are aware, generally, of what long-term care insurance is, or are new to the options, when shopping for a plan, there are a number of things to consider. Long-term care insurance plans can be complicated and often offer many options for level of coverage, type of coverage or care that is covered as well as payment options, among many other factors, all of which can affect the cost of your premiums. But, we can help you navigate the many choices in Long Term Care Insurance plans. Simply fill out this form to get started. Thanks for reading today's blog. We really appreciate it.