Is Long-Term Care Insurance Right for You?

According to the U.S. Department of Health and Human Services, people reaching retirement age and crossing over to their 60s will eventually need some kind of long-term care insurance. Your retirement savings will not last that long if things go south. Of course, if you have a high net worth, you won’t really find the need to go for this policy. But, in case you want to save some bucks later on, going for this policy may not be a bad choice. On the other hand, if you are barely scraping by and haven’t saved much, you might wanna look into Medicaid.

Long-term care is a touchy subject. It’s not exactly a dinner table conversation. No one feels comfortable talking about the future where they or their loved one might not be able to live on their own and require around-the-clock care. Let’s leave the hard decisions here for a moment.

You first need to decide whether you should buy long-term care insurance policies in Boca Raton or not.

Understanding Long Term Care Insurance

Think of long-term care as staying at a living facility or nursing home. It includes both inpatient and outpatient care, which means you can also opt for hiring caretakers who will stay with you. Usually, long-term care is paid for by your insurance company when the stay extends beyond 3 months.

Long-term care insurance also covers care coordination and home modifications. For example, if your leg was fractured permanently in an accident and you require assistance, long-term care insurance will pay for railings and other accessories.

Most Americans, by the time they will reach their 60s, around 70% of them will require some sort of care insurance. 20% will require it for more than 5 years. Yet, only 7.5 million Americans carry long-term care insurance. If you have a high net worth, you can self-insure.

When Should You Buy Long Term Care Insurance

According to the American Association for Long-Term Care Insurance (AALTCI), the ideal time to buy long-term care insurance is in your mid-50s. The reason behind the early application is that many long-term care insurance companies in Boca Raton reject applicants who are older and have multiple health problems.

Though the Affordable Care Act states that an applicant cannot be rejected because of pre-existing medical conditions, it does not talk about long-term care insurance. By the time you will experience problems with your daily routine and require assistance with activities, such as getting out of bed, getting dressed, bathing, eating medication on time, or needing 24/7 care because you have Parkinson’s or Alzheimer’s disease, the premiums will be too high for you to be able to afford the policy. AALTCI reports that 23% of applicants aged 60 are usually declined coverage, and 14% aged 50.

Long-Term Care Insurance Cost

Buying long-term care insurance is extremely important because paying for it out of your pocket can be super expensive, and its costs will keep rising. The average cost of living in a nursing home in the US for just a month is $7,698. The Alzheimer’s Association reports that an older adult with dementia usually pays $367,000 for long-term care in their final 5 years of life.

If you are wondering where government programs factor in here, we are sorry to inform you that they won’t help. Medicare does not cover long-term care costs. Yes, Medicaid is an option, but it is open to those who truly have no money. If you don’t fall into this category, do not even consider this option because you will have to sell all your assets to receive help.

This is why long-term care insurance is the best option! The cost of this policy differs from person to person. A few of the factors it depends on include gender, age, personal health, and history of family health. In some cases, the company might even consider the kind of policy you want and your location. Here’s the breakdown of a standard policy:

55-Year-Old Male

  • $1,700/Year
  • Duration: 3 Years
  • Coverage: $164,000
  • Daily Max: $150

55-Year-Old Female

  • $2,675/Year
  • Duration: 3 Years
  • Coverage: $164,000
  • Daily Max: $150

Note: The reason why the premium is higher for women is that they outlive men.

55-Year-Old Couple

  • $3,050/Year
  • Duration: 3 Years
  • Coverage: $164,000
  • Daily Max: $150
  • Discount: 15% to 30% (Based on Location)

After you sign up, the company can choose to increase rates. The good news is that this insurance policy is tax-deductible, so you will have some savings.

Long-term care insurance is worth buying no matter how much you pay because you will need it later in life. Protect your loved ones today with help from the Center for Long Term Care Planning. To know more about their services, visit their website or call (561) 272-0720.