The need for long-term care is one of the biggest financial threats you could potentially face in life.
Planning for it now gives you “peace of mind” for a future need. Just as you plan for retirement, plan for the potential of needing care and pay for it with long-term care insurance.
What Is Long-Term Care?
No one likes thinking about it, but as people age or become ill, they may need help doing daily tasks like getting dressed, bathing, and more. Long-term care (LTC) provides people with those services. Paying for long-term care services can be expensive. Most health and disability insurance won’t cover it but long-term care insurance will.
JOE AND SUSIE WERE A YOUNG MARRIED COUPLE OF EQUAL AGE. THEY WEREN’T ALWAYS SMART WITH MONEY, BUT THEY WORKED HARD AND BUILT UP A NEST EGG OF $300,000.
Later in life, when Joe was 67 years old, he developed Alzheimer’s disease. At first, it wasn’t too bad. Susie used some of their nest egg to hire a home-care specialist to help with Joe a few hours every day. But as his condition worsened, Joe had to go into a nursing home.
Sadly, after five years in the home, Joe passed away from old age. Susie, now 72, is healthy as can be for a lady her age but works full time because her husband’s stay in the nursing home devoured most of their nest egg.
What you’ve just read is sad, but it happens to thousands of people every year. However, you can keep it from happening to you.
Why You Need It
According to the American Association of Home and Services for the Aging, 70% of people will need some form of LTC after age 65. If you become ill, it helps ensure that your spouse will have enough money to eat and your kids won’t be burdened with huge payments. Not having LTC insurance can be a financially devastating mistake.
Now you may be thinking, won’t the government pay for my long-term care? They will if you qualify for Medicaid, the government program designed for people who truly don’t have any money.
In some cases people try to cheat the system and move all the assets out of their parent’s name and get the government to pay for LTC. Doing that is called fraud—a federal crime which could lead to prosecution! Also keep in mind that the government is already having trouble paying for those on Medicaid. Do you really want to count on the government to pay for your LTC?
When To Buy It
There is no “right” age to buy long-term care insurance. The healthier you are the greater your chances of getting approved as all policies are medically underwritten. We design custom plans based on your specific budget.
Everyone needs a PLAN; even if you don’t buy insurance
Having a plan communicates how you want to be cared for where, and who you want to care for you
Having a plan helps protect your assets
Having a plan reduces the burden of care on your spouse or children – potentially reduces the financial burden
Having a plan helps you remain independent of your own home for as long as possible
Having a plan gives you peace of mind – and your children
Who pays for long-term care services today?
You do – it’s your assets, your money, your saving
You can co-insure with an insurance company
Your family members - children
Medicaid - plan of last resort after you’ve spent down your assets and only in the NURSING HOME
Keep in mind the following as you PLAN and BUDGET for your future healthcare needs:
Out of pocket expenses continue to increase
Medical costs are rising at a rate of 5% per year
Rising costs of drug coverage
Possible reductions in benefits from the government (Medicare, Social Security)
Possible reductions in benefits from company retiree plans or altogether eliminated
Dental, hearing, and vision coverage needs
Better to buy direct or from an agent?
Most direct-to-consumer websites present Long Term Care Planning and Insurance as a straightforward proposition. Experience shows that may not be the case. Each plan is customized based on your health, your age, and selection of benefits. You can decide which plan best fits your budget and provides the coverage you desire should you need LTC.
Working with an experienced professional will help ensure that you have “peace of mind” in selecting the most cost-effective and best coverage given your unique health care concerns, both now and in the future.
There is never a charge to meet with us. We are compensated by the insurance company should you decide you’d like us to help you with this important area of financial planning and protection.