A recent study revealed some frightening results with regard to awareness of Long Term Care Insurance. Most Americans believe that Long Term Care Insurance should purchased between the ages of 45-64 but a full 82% have yet to do so. In addition, since the financial crisis of 2008/9, only 20% of adults have taken any step toward further planning in the area of long-term care and don’t plan to in the next 2 years. These are troubling findings as most people would not cancel their retirement plans or 401ks in an economic downturn yet they will ignore the reality of their future long-term care needs. And these future needs are real, according to a Department of Health & Human Services report that estimated that more than 65% of all Americans will need long-term care services after the pass age 65.
One promising finding from the study, however, was that those in the 25-44 age group were more likely than older adults to want more information about Long Term Care insurance. This presents an opportunity to correct this generational problem and crisis in lack of long-term care coverage across the nation. In addition, this is an important finding as this younger generation of Americans are expected to have greater life expectancies and will likely live well into their 90's. Incidences of diseases and afflictions such as Alzheimer’s and dementia will likely grow much higher in the future and require an even greater number of Americans to require long-term care services.
What is long-term care?
Long-term care services include a full range of options from nursing homes to in-home care and adult day care and are “non-medical” from the point of view of regular health insurance. Thus, regular health insurance, as well as Medicare/Medicaid, unless you qualify, won’t pay for these services. Many thus find themselves having to exhaust savings and assets, their “nest egg”, in order to finance their long-term care needs. Sadly, many Americans aren’t even aware of the need for Long Term Care Insurance which is insurance that covers the costs of so-called long-term care services. Many wait until it’s too late and then scramble to qualify for a policy or to get coverage which can be difficult if you’re older or already ill.
Long Term Care Insurance: The options
Long Term Care Insurance policies offer a wide range of options with regards to level and type of care, amount of coverage, length of coverage as well as options for “inflation protection” and “elimination period.” Inflation protection is a critical part of any policy as it means that you’ll paid out in tomorrow’s dollars and your coverage will keep pace with the rate of inflation in the economy so that you can afford your future long-term care needs. The “elimination period” can be adjusted to keep premiums lower and is the amount of time you can wait until being admitted into a nursing home or using some other long-term care service. Also, purchasing a dual-coverage policy for you and your spouse wherein you share the benefits and coverage can save you money on premiums. There are many other options and choices in Long Term Care Insurance policies and you’ll want to speak to a professional to ensure that you make the right decisions for you and your family.
Assuming you’ve done you’re research and are aware, generally, of what long-term care insurance is, 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. But, at LTC Tree, we’re professionals who have helped thousands of Americans find a plan that is right for them, regardless of their financial status or budget. We 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.
Reviews of each company's financial stability ratings, claims experience, and size.
A side-by-side comparison of each company's policy features. We cover the similarities and the differences.
Price comparisons customized to suit your specific needs from top carriers such as Genworth, Transamerica, John Hancock, New York Life, MassMutual, Mutual of Omaha, and more.
