Long Term Care Insurance may be expensive but not compared to paying out-of-pocket

Long Term Care Insurance can be expensive. Period. But, the larger context around the cost of this vital type of insurance is often not given when discussing the high cost of Long Term Care Insurance premiums. So, many people, unfortunately, don’t know the whole story and are put-off by the perceived high cost of long-term care premiums. What’s often not said is the extreme cost of NOT having Long Term Care Insurance and how it can devastate a lifetime of savings and retirement planning and leave your children to foot the bill or care for you. It can tear apart families and cause unnecessary emotional as well as financial burden on your loved ones.

Here are some of the top myths about long-term care, followed by the facts that dispel these myths:

1. I can pay for my care out-of-pocket.
2. My children or other relative will care for me.
3. I won’t need long-term care.
4. Regular health insurance will cover me.
5. The government (Medicare/Medicaid) will take care of me.

And, here are the top facts about Long Term Care Insurance, to help guide you:

1. Long-term care services include nursing homes and in-home care related to the basics of daily living that are “non-medical”.
2. Regular health insurance won’t pay long-term care.
3. Medicaid will pay only after you have spent down your assets.
4. You can’t depend on your children to care for you as it can be a tremendous emotional and financial burden and can ruin relationships and break apart families.
5. ⅔ of all Americans will need some form of long-term care after age 65.
6. Long-term care services are expensive with nursing homes running around $200 per day and in-home care coming at $21 per hour, on average.
7. The younger you get a policy, the better, as premiums can be as low as $1,000-2,000 per year for a comprehensive policy.
8. Long Term Care Insurance policies are somewhat complicated, compared to other types of insurance.
9. You’ll want to consider many options and choices and speak the professionals here at LTC Tree.

As you can see, the differences between the myths and the realities of long-term care are quite stark and many are left unprepared to deal with these realities.

Once you get the ball rolling on thinking about these issues, navigating the myriad choices in Long Term Care Insurance plans can be daunting. There are many options to consider such as level of coverage, length of coverage and age at which to purchase which all contribute to the cost of premiums. Time, unfortunately, is not on your side as the earlier you buy, the better the rates. So, it’s never too early to start thinking and planning about your future long term care needs. LTC Tree can help you navigate the many choices in Long Term Care Insurance plans and help you insure that you live out your retirement years on your terms. Simply fill out this form to get started. Thanks for reading today's blog. We really appreciate it.