Is Long Term Care Insurance A Good Idea?
Though it has been around for many years, long term care insurance is still a debated topic for individuals nearing their retirement. One the one hand, some say that it’s unnecessary, since you’ll probably have health insurance or life insurance anyway, and that you will have enough savings to last you through your old age. On the other, though, those who’ve seen its value know that both those reasons given are unfortunately unrealistic assumptions.
For the first, you should know that health insurance or even Medicare is not intended to pay for long term care. Review the terms of your health plan again and see what it says about this important but unnoticed part. To actually have coverage for in-home care or be able to stay in a nursing facility, you’ll need a separate standalone or attached policy that will handle LTC.
On the second reason, unless you’re a very wealthy and successful businessman or multi-millionaire, chances are your savings, even including your retirement package, won’t be enough to comfortably afford the costs of long term care in the future. Underestimating these expenses will likely result in you digging deep into funds that should be spent in travels or hobbies or you may even become impoverished.
The recovering economic climate in the country today will not prevent the rising costs of long term care. Analysts predict that the costs of care will be four time as much as it is today by 2030, when most baby boomers will be in their 80s or 90s. By then, being able to afford senior care without long term care insurance would be out of reach for all but the richest few.
There are roughly only ten million active LTCI policies today, meaning the majority of aging Americans are still unprepared for this scenario after they retire. Though the government has implemented several programs to increase awareness and entice the people regarding state and private insurance policies, many are still hesitant to put their hard-earned money into something they think would go to waste if unused.
However, even if you remain healthy as you grow older and the benefits in your policy remain unclaimed, there is still the increasing likelihood of you requiring care the older you get. And with funds ready for such an eventuality, you can live your life more comfortably and worry-free.
Needs for the future
An LTC policy will not only benefit you but your family as well. While you are meant to be the main beneficiary of your policy since it will take care of your expenses when you’re too weak or frail to work, your family will also be better off not having to worry about being able to take care of you. This spares them the burden of having to find funds or the time to see to your needs.
You can see the many great benefits that having an LTC policy will provide you. That said, purchasing a policy will still be dependent on your own financial capability. However, by consulting a financial advisor or a licensed insurance agent, you’ll be able to determine if you can afford long term care insurance and even get recommendations on how to save on your premiums.