Long Term Care Plans
Long-term care services can be dramatically expensive, and many expenses aren't covered by Medicare or your primary health plan.
What is Long Term Care Insurance?
As we age, the likelihood we will need some type of medical or personal care increases. We may need long term care - a variety of services which help meet the medical and non-medical needs of people with a chronic illness or disability who cannot care for themselves for long periods of time. Such services typically include assistance with normal daily tasks like dressing, bathing, and using the bathroom. Long-term care can be provided at home, in the community, in assisted living facilities or in nursing homes.
These costs add up. The costs of long-term care on average exceed $50,000 per year! Medicare and basic medical insurance plans typically do not cover these expenses. Long term care insurance may pay benefits up to a stated period of time, or could pay to a maximum dollar amount. Most policies have options for benefits to increase every year to keeps pace with rising health care costs.
It’s never too early to consider long-term care insurance because:
- The younger you are when you buy long term care insurance, the less it costs.
- Once you have the coverage, it is Guaranteed Renewable for life – it cannot be cancelled. Conversely, once you become too unhealthy to obtain it, you are unlikely to ever be healthy enough to qualify again.
- If you are 45 or older and do not have coverage in place, we encourage you to learn more now. For more information including a personalized quote, please make an appointment to chat with us.
NOW is The Time for Long Term Planning!
We won’t admit it but NOW is the time to start planning for our long term care needs. Planning ahead is important because 70% of people turning age 65 can expect to use some form of long-term care during their lives. And, most likely the older you get the greater the chance you will need long term care.
Why is planning ahead for long term care so
important? Consider the following:
- Not relying on children or family with care giving responsibilities
- Protecting your retirement assets
- Ensuring that critical choices remain yours
It’s important to plan ahead because the cost of services often exceeds what you can afford to pay from your income and other investments. With planning, there is a greater likelihood that you will be able to leave an estate to your heirs, because you are less likely to use up your nest egg.
With long-term care planning you are helping to reduce the emotional and financial stress on you and your family. It gives you and your family peace of mind.
How Much Long Term Care Insurance is Enough?
When it comes to insurance there isn't a one-size fits all approach. This is especially true when it comes to long-term care insurance.
When thinking about your long-term care insurance policy, it is important to take the following into consideration
Protecting Your Assets
Long term care insurance should be a factor in your overall retirement planning. Because needs, resources and personal situations differ, it's important to discuss your situation with a trusted advisor.
Current Long Term Care Costs
Whether you plan to move to a warmer climate or closer to your family, the cost of care varies by state and by region. Where you retire is an important factor in determining the amount of coverage you will need.
How Much Care Will You Need
The duration and level of long-term care will vary from person to person and often change over time. Here are some statistics to take into account:
Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years.
Women tend to need care longer (3.7 years) than men (2.2 years).
One-third of today’s 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years.
As you can see, there are many issues surrounding buying long term care insurance. Give us a call and we can discuss.