Long Term Care Insurance – A Policy You May Need
Long Term Care Insurance (LTC) is an unknown policy to many adults. Like car insurance, you may never need it, but if something happens, it is good to have.
So, what is Long Term Care Insurance?
LTC insurance is a supplemental policy that assists with future medical expenses not covered by Medicare or personal health insurance.
A few things to note regarding LTC:
- First, it benefits those with a chronic condition or the inability to care for oneself.
- Secondly, it reimburses you a portion of the cost of a professional caregiver in your own home to provide activities of daily living, i.e. bathing, toileting, eating, etc.
- Or, it can cover for some of the cost of living in a nursing home, memory care unit, or assisted living.
- It is important to know that LTC insurance policy has a specific monthly benefit amount. This is indicated in the policy you purchase.
- Lastly, it is a large expense that needs to be thoughtfully considered.
Why should I purchase it?
Because about 2/3 of adults will need some form of medical care in their final years of life.
Reasons to look into investing:
- 24-hour care can cost as much as $15,000 a month-not including the upkeep of a home or any other personal expenses.
- Most retirement savings are based solely on the cost of living.
- Also, personal health insurance and Medicare will not cover the costs of living in a long term care community or in-home care by a professional.
How do I get Long Term Care Insurance?
If you have a Financial Advisor, be sure to talk with them about your options.
For those who do not have a Financial Advisor, this article is a good place to research companies that offer LTC insurance.
Consider the following:
- First, it is recommended to invest in the insurance between the ages of 55 and 65-the cost does increase with age.
- Be sure that your retirement savings are fiscally sound.
- Being in good health at the time of investment is very beneficial.
Why should I get Long Term Care Insurance?
You never know if and when something will happen to your health later in life. Dementia, a stroke, or a broken hip are just a few examples of unexpected health issues with high expenses. And with those extra expenses comes a burden to family or friends when the retirement funds have depleted.
I personally have seen the strain on individuals and families who have outlived their financial resources. It is stressful for all and can be avoided if you plan.
Above all, be prepared. Time is money!
Bonus:
Many policies these days come with a death benefit to your heirs if the money you invested is not used, unlike car insurance-talk about a win-win!
