Do You Need Insurance for Long-Term Care?  

I just read an article on long term care insurance in Parade Magazine and it helped me notice how far people have come about educating themselves and planning for this realistic risk.  When I began in the industry 10 years ago I would send out letters explaining what long term care insurance was.  A few weeks would pass and I would follow up with the people on the phone and when I asked if they got that letter on long term care insurance 3 out of 4 people would mistakenly hear lawn care and tell me they don't need their grass cut.  Seeing the industry mature into a key financial planning tool is a positive sign and having respected publication like Parade write articles keeps spreading the word.

The article in Parade Magazine started by describing that people are living longer which is good, however with that longevity comes a high risk of needing long term care before you die.  Many people still assume Medicare will pay for their care, but in fact it pays only the first 100 days at best after jumping through the government's hoops.  Medicaid will pay only after you've spent all your life's savings and that is the problem.  For people who want to live their last few years comfortably or leave something to their family long term care insurance could be a solution.  The article goes over some keys factors to consider before buying:

The Cost
The older you are when you buy long term care insurance, the more your premiums will be. For people 60 to 70, premiums can range from $1000 to $8000 a year per person. If you buy a policy at 60, you probably won't use it for 20 years or so, it is imperative to buy the “inflation rider.” This will increase your benefits over time. 

The Benefits
A long-term care insurance policy pays a predetermined amount ranging from $50 to $400 per day and the payments can last from a 1 year up to unlimited or lifetime benefit period.  In order to use your benefits most all policies use the activities of daily living or ADLs.  Most policies require you to need help with 2 out of 6 ADLs.  Eating, bathing, dressing, toileting, transferring, and maintaining continence. 

The article closes with these keys facts to consider:
• Buy from a company that has top financial ratings. You want the insurer to last at least as long as you do.
• Avoid policies you need a paycheck to pay for. You must be able to afford premiums after you retire.
• Don’t buy more insurance than you need. Few people require lifetime benefits. The average stay in a nursing home is just 2.5 years, and 43% of residents stay less than one year.
• Don’t choose a policy solely on the seller’s recommendation. Get a second opinion from a certified financial planner or an elder-law attorney. 

At LTCtree we work with most all the main carriers and will show you the top 5-6 in a side-by-side comparison format so simply fill out the form below and we will mail you your quotes.