Every once in a while you’ll see an article suggesting that buying Long-Term Care insurance (LTCi) doesn’t make financial sense. I read those with amazement and some wonderment how they can take such a simple financial choice and make it seem mystical. Without long-term care insurance, care can be financially devastating, costing thousands of dollars a month.
When you ask yourself “Do I Need Long-Term Care Insurance?” the answer is in just a few simple questions.
- Do you have the discretionary income needed to pay the premium?
- Do you now have, or will you someday have, more than minimal assets to protect?
- Do you want to create alternatives for your Long Term Care should you become disabled?
If you answer these three questions honestly you will have your answer.
Notice that none of the questions asks whether you’re susceptible to an illness that would require long-term care. The odds are one out of seven of those over 65 will have to deal with advanced alzheimer’s. That alone is reason enough to consider long-term care.
Do you have the discretionary income needed to pay for LTC insurance.
Depending largely on your age and the coverage you select, the premium could be from $1,000 to $4,000 a year. That amount of expense requires consideration. Once people make the decision to buy LTCi they rarely allow the policy to lapse.
Long-term care insurance policies covers care in a licensed nursing home, an assisted care facility, home health care, in-home health care services, and physical therapy. Long-term care insurance can also cover adult care center services, such as social and educational activities and personal supervision. It can also include things like hospice care, respite care, or care after a hospital stay.
Do you have assets to protect . . . or will you?
Wealth is accumulated for many reasons. Those who advocate spending down your hard gained assets so that you qualify for Medicare seemingly don’t understand the aspirations of many. Many “experts” suggest that those with assets in excess of $1,500,000 should handle their own long-term care costs. Insurance is an economic means of smoothing expenses. Such logic would also suggest that those with high net worth should self-insure their homes. Money is money and should be properly protected when possible.
Young people should consider their potential earnings and seek to protect them from a financial crippling event.
Do you want to create alternatives for your Long Term Care should you become disabled?
Becoming old is not for the faint of heart. There is a LOT about it that isn’t pretty. Think about providing for reasonable alternatives for yourself so that your eldercare is done in a way that allows you the most dignity.
Seek the advice of a licensed and trained insurance professional.
Other Enhanced Insurance articles related to Long-Term Care Insurance:
Long-Term Care Insurance (With Video)
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