Long-Term Care Insurance-Why You Need it
Most people have a love-hate relationship with insurance, but especially with long-term care insurance. When you love your families you want to protect them with life, homeowners, auto and health insurance. There is a 1 in 1200 chance that your house will burn down, a 1 in 240 chance that you'll be involved in a car accident , a 1 in 15 chance you will incur a major medical expense-and a 1 in 4 chance you will rack up a long-term care bill.
Long-Term care insurance can be pricey precisely because it's a hedge against big expenses. Long-term care is the single most catastrophic financial risk you face. And that's why the protection of insurance is so important. Many individuals mistakenly think that long-term care insurance is too expensive. As opposed to what? As opposed to $6000 per month in a long-term care facility. Compare a monthly premium of $200/month to the cost of $200/day in a long-term care facility. The long-term care insurance is a bargain in comparison.
Second to interest rates, unexpected health care needs are an imminent threat to financial freedom and a comfortable retirement-an injured spouse who cannot work, a huge medical bill becomes more than a family can afford, or a frail elderly parent needs assistance. The list of unexpected events is endless.
If you don't think this is relevant for you or your family, think again. As soon as you reach retirement (age 65), the chances of needing long-term care for health needs reaches 45%, and increases with each year. Decent odds for betting on anything but your own quality of life! The only way to ensure a sound retirement is to plan for quality of life that reflects your essential goals and intentions. That is authentic retirement living.
Here are some important questions to ask yourself when thinking about your retirement, aging and the ability to care for yourself when you become older and frail.
1. Where would you like to receive your care? Would you like to stay at home?
2. Do you have family that is willing to provide free care? Can they leave there jobs or families? Do they live close by?
3. Are you healthy enough to qualify for a Long-Term Care insurance policy?
4. Do you want to protect your assets and your lifestyle in retirement?
Purchasing Long-Term care insurance is a personal decision. It is important that you can afford the monthly or annual premiums even into retirement. It is important to get educated and speak with a Long-Term care Specialist. Long-Term care specialist have additional training and receive designations in long-term care planning (CLTC and LTCP). With the specialists help you can find the right insurance for you.
Finding the Right Insurance:
- Buy only from a top-rated company
- Don't buy more than you need (It should be personalized for you and your situation)
- Seek the assistance from a Long-Term care Specialist who represents the Top Carriers
- See if there is a "Partnership" program in your state
The six key factors that will have the largest impact on the cost of your policy include:
1. Elimination period
2. Your age/health
3. Benefit period
4. Daily benefits
5. Inflation riders
6. Marital Status
Long Term Care Financing and Planning is What we Do!