Did you know
There exists about a 50-50% chance you will require some long- term care (LTC) by the time you approach age 65 and up. Without insurance, the average out of pocket expense associated with long- term care comes to about $140,000. It is also likely you have not yet planned for this financial occurrence, as only about 7 million of the American population currently possesses long- term care insurance. Long- term care insurance will help cover the cost of in home care, assisted living, and nursing home expenses. If you have started planning for this financial risk and are considering long term care and the options available to you, you may find this list of four facts about long term care insurance useful.
- The early bird does in fact get the worm
When it comes to purchasing a long term care insurance policy you will want to do so sooner than later as your age will directly effect you premium. Ideally, you should start shopping for this type of insurance in either you 50’s or early 60’s as each year you put this off, adds another spike in your possible premium. It is best to shop with an informed agent who offers policies under various companies as opposed to a single insurers as this will help reduce any personal bias on the product.
2. Traditional policies may be the most cost effective for you
If you are looking for a policy with cost effective coverage regardless of whether or not you never need care, you may consider a traditional LTC plan. A non traditional plan such as a Hybrid plan tends to require more money upfront and over a ten year span. The upside to these Hybrid plans is, you are eligible to receive a large portion of your vested money back should you never need care unlike most traditional plans. With that being said these plans tend to be much higher in cost than your traditional plans.
3. There are different types of policies
Whole life insurance such as hybrid policies vary from your traditional long term care policies as they allow you the security of receiving money back should you never need care. These hybrid polices also guarantee you will never experience a spike in your premium as they are guaranteed to remain the same. The health vetting associated with these plans is also less intense, making it a more feasible option for those with some health problem as compared to traditional underwriting.
4. You might not need insurance
Yes its true you might not ever actually require long term care or perhaps you have saved enough money on you own in the case that you do. You do however, need to have some sort of plan in action as you don’t want to be left without resources should the time come you really need them, better safe than sorry!
If you or a loved one is interested in Long Term Care Insurance be sure to checkout: LTC TREE for more information.
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