Long term care insurance is a type of insurance that is
often overlooked and even more frequently, completely ignored. It is the only
form of insurance that will help cover the costs associated with long term care
services, such as nursing home care, home health care, and assisted living.
These services can be expensive,
and most health insurance policies do not cover them. LTC insurance can also help
protect your financial assets, the ones that you’ve worked your entire life to
accumulate, as well as provide peace of mind for both you and your family.
Longevity concerns are an important factor to consider when
deciding whether to purchase long term care insurance. As people are living
longer, the likelihood of needing long term care increases. LTC insurance can
provide peace of mind for those who are concerned about the potential costs of long-term
care in old age. Remember, longevity means living a long life, not necessarily
a vibrant, healthy one!
Like most insurance policies that are medically
underwritten, it is always advantageous to consider securing a policy when you
are young and healthy. By purchasing a policy while you are in good health, you
may be able to get a lower premium and have a greater choice of policy options.
This contrasts with waiting until you need long term care services, at which point
you may not be able to qualify for coverage due to pre-existing health
conditions. There is a huge difference between being proactive and taking
action or being reactive to the situation at hand. It always pays to plan
Another benefit of long-term care insurance is that it can
help ensure that you are not a burden on your family. Long term care can be
physically and emotionally draining for caregivers, and the financial costs can
be significant. Long term care insurance can help alleviate some of these
burdens by covering the costs of long-term care services.
There are many ways to fund a long-term care insurance
policy, including options that offer guaranteed premiums that will never
change. If you are older than 59.5 years old, there are options that can be
funded with qualified assets. This is a very attractive option for individuals
who have a bulk of their savings in IRA, 401k and 403b vehicles. One of the many
benefits of using qualified/retirement dollars to fund a long-term care
insurance program, is that it can help satisfy Required Minimum Distributions
(RMDs). RMDs are the minimum amount that must be withdrawn from certain
retirement accounts, such as traditional IRAs and 401(k)s, each year, once you’ve
reached age 72.
Another advantage of long-term care insurance is the joint
underwriting component that allows insurance companies to assess the health
risks of two people at the same time. This can be beneficial for couples,
business partners, siblings and more, who are applying for long term care
insurance, as it allows the insurance company to consider the health risks of
both individuals when determining the premium for the policy.
One of the greatest benefits of long-term care insurance is
that it can help you avoid paying for long term care services out of pocket.
Long term care is expensive and paying for it yourself can deplete your savings
and assets quickly. With long term care insurance, you can use the insurance
company's money to pay for the care you need, rather than paying out of pocket.
summary, long term care insurance is an important consideration for anyone who
is concerned about the potential costs of long-term care. It can provide
financial protection, allow you to leave a legacy for your family and community,
address concerns about longevity, and help ensure that you are not a burden on
your family. By considering these factors, you can make an informed decision
about whether long term care insurance is right for you.