Individuals & Couples
Our state and federal governments tell us that most of us will need some type of long term care (LTC) service at some point in our lives. Consequently, most of us will have to decide how to pay for it. Basically, our choices are (1) individual/family assets and income or (2) long term care insurance. How would you prefer to finance future health care needs? LTC insurance is usually the most economical way to pay for LTC services.
Did you know?
- Over 40% of Americans who are currently receiving long term care are between the ages of 18 and 64.
- Individuals who reach age 65 have a 10x greater likelihood of using LTC insurance than using homeowner's insurance.
- In 2007, $3.5 billion in LTC insurance benefits were paid. 43% for home care, 32.9% for assisted living and 24.1% for nursing facility care.
- There is no premium-savings advantage to waiting to purchase LTC insurance. Even though a younger person would pay more years, he/she would pay less overall than someone who waits to purchase at an older age. Additionally, the younger an LTCI applicant is, the more likely he/she will qualify for preferred health discounted rates. And, unfortunately, some people wait too long to apply to purchase and find that health problems won’t allow them to qualify to buy LTCI at any cost.
- Long term care insurance can provide the purchasing power and control to help insureds receive care services at home or in assisted living (and possibly avoid nursing facilities). Maintaining independence while reducing physical and mental stress on spouse or children is often a priority of LTC policyholders.
Possible questions to consider before insuring against the cost of LTC:
- As you prepare for your future health-care needs, what do you think that looks like for you?
- How do you think you'll age?
- Where do you want to live?
- Is it reasonable to believe the as you grow older, you may need some kind of assistance?
- What type of services do you think you might need? Which would you prefer?
- How do family dynamics factor in and impact your future? Children available or desirable to provide assistance?
- Paid help in your home may allow your family to take better care of you for a longer period of time. If needed, how would you pay for this type of care?
- Do you have a personal or financial plan for paying for your future long term health care costs?
- How much would you be able to afford annually to pay for LTC services in today's dollars? Would assets have to be liquidated?
If I had long term care insurance, what would I want it to do for me? Some possibilities:
- Provide financial means to pay for care rather than using assets and income (LTC purchasing power)
- Preserve choices and options for care locations and care services (Quality of Care)
- Protect spouse and spouse’s lifestyle
- Avoid depending on children
- Control estate planning wishes
- Prevent financial loss, control retirement finances, protect assets
- Maintain independence, control and responsibility
- Other?