The costs of Long Term Care Insurance are rising, but it still makes sense to get a policy

Many Americans have become concerned by the rising cost of premiums of Long Term Care Insurance policies. Some existing policyholders have seen their premiums rise as much as 40% in the last few years. While this is a disturbing trend, it needs to be understood in terms of the overall picture with regards to long-term care. While insurance companies may have slightly miscalculated on how many policy-holders would file claims and hold on to their policies, the value of Long Term Care Insurance is still valid and it remains a solid investment in your future, retirement plans. In addition, Americans are simply living longer and are needing long-term care services even more than expected just a few years ago.

Long Term Care Insurance covers the costs of so-called long-term care services which assist with the activities of daily living such eating, bathing and moving about. The costs of these kinds of services, considered “non-medical” by regular health insurance and thus not covered, have been rising faster than expected and certain services such as adult day care and assisted-living facilities simply didn’t exist 15-20 years ago when some people purchased policies. But, as one insurance industry expert said, though the rates of risen somewhat dramatically, Long Term Care Insurance “it’s still a tremendous value relative to what they could purchase today.” This is the critical point. While premiums may be high, they are dwarfed by the high cost of long-term care services that, it should be noted, would need to be paid for out-of-pocket, when the time arises when you need long-term care.

So, the advice for current policyholders is to NOT let go of your policy. Your insurer will usually work with you to reduce some of the coverage levels to bring the policy in line with what you can afford. With Long Term Care Insurance, a little insurance is better than nothing. Your policy is more valuable than you might think and will serve as an integral part of your retirement portfolio.

For those looking to buy Long Term Care Insurance, don’t be discouraged by the stories of rate increases and the higher cost of coverage. These figures don’t even compare to the high costs of having to pay for long-term care from your savings. Many without coverage are finding it’s too late when they need long-term care and are struggling to pay for services that are not covered by regular health insurance nor by Medicare/Medicaid, unless you qualify, which can be difficult if you have even modest assets or savings. Long Term Care Insurance is still the wise choice for your retirement planning needs.

Don’t be intimidated by stories of the high cost of Long Term Care Insurance coverage. Start planning for your future and securing all that you’ve worked so hard to achieve for your retirement today. LTC Tree can help you find a plan that is right for you, no matter your age or financial status. If you'd like to learn more about our affordable Long Term Care Insurance policies, simply fill in the form below. Thank you for reading today's blog. We really appreciate it.