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Long-Term Care Insurance: To Buy or Not to Buy

By Byron Udell | November 25, 2014

In September, I wrote a post about long-term care (LTC) because I was sourced in a USA Today piece on the topic.  I barely scratched the surface, though.

Now we’re in November, and it’s LTC Awareness Month.  But there’s a pretty good chance you’ll need long-term care EVERY MONTH when you get older (not just in November). Here are some more details on LTC insurance (pay attention, as the stats say you’ll probably need it!):

What is it?

Well, let’s start with what long-term care is; it’s what you’ll probably need when you’re older (keep reading to learn just HOW LIKELY it is that you’ll need it).

Long-term care insurance is what can HELP you pay for that care, which costs A LOT now and is only going to increase.

Of course, you don’t want to think about getting old, wearing a diaper, and not being able to take care of yourself.  But as long as you’re alive, that day will probably come.  And when it does, where will the money for care come from?

Answer: Long-term care insurance.

Why do you need it?

Because LTC costs are staggering, will eat up your savings, and could cause you or loved ones to die broke.  In other words, long-term care poses a HUGE threat to your retirement plans.

How much of a burden do you plan to be on your family in your “old age”?

As of this writing, live-in care costs $200 a day.  A nursing home is over $300 a day. Do the math.  That’s $180,000 A YEAR for a couple.  If you can’t afford it, your family bears the brunt of these expenses.

Think you eventually won’t need long-term care? Think again

FACT: There’s a 91% chance that either you or your spouse will need long-term care

FACT: 70% of people over 65 will need ongoing assistance of some kind in their lives (and Medicare only pays for short periods of care)

Bottom line: Long-term care insurance shouldn’t be an option; it should be an essential and required part of your financial plan.

How do long-term care policies work?

No one gets excited about buying long term care insurance … paying premiums … and coming to grips with what life will be like one day when you actually need the care. No one wants to even think about it.  But it’s important to learn how it all works.

In order to collect benefits, most long-term care policies require that you either:

  1. Have a severe cognitive impairment (i.e. Alzheimer’s) OR
  2. Are unable to perform (without help) two or more of the six Activities of Daily Living (ADLs)

The six ADLs are: eating, dressing, bathing, toileting, continence, and transferring (transferring is the ability to get out of a chair and walk across the room and sit in another chair—all without assistance).

How much does it cost?

It depends on a handful of factors, including your age, gender, current health and the amount of coverage you want.  You can buy a little, a lot, or none at all; it’s your choice.   If you want specifics on pricing and plans, call us at 877-908-5089

Think about this …

The odds of your house burning down are 1 in 1,200. Yet who in their right mind goes without homeowner’s insurance?!

The chances of needing long-term care are much greater (91%); can you really afford not to have long-term care insurance?

We only work with highly rated insurance companies – brand names you trust. You may be able to save money without sacrificing quality and strength.