Long Term Care Insurance: Do You Really Need To Buy It Now?
By Jeff D. Hackmeier LUTCF, CSA
It’s a matter of a simple preposition.
Do you want your family members to care ABOUT you or FOR you?
As medical advances have improved our chances for longevity, the probability of requiring assistance with activities of daily living, such as bathing and dressing and even skilled nursing care has increased as well.
Statistically 70% of adults over the age of 65 will require some level of service at some time in their life. But when you may need services as well as for how long is an unknown. And the unknown is a huge risk. No matter how large your savings or how many family members are available to care for you, the financial costs and emotional toll of the unknown can be overwhelming and potentially unaffordable.
Long Term Care Insurance is one way of helping you pay for chronic care if you are no longer able to care for yourself due to illness, injury, disability or just aging. It generally covers services not provided by Medicare or your healthcare insurance provider such as a private duty aide or nurse, assisted living, adult day care, long term nursing home or memory care centers.
Buying Long Term Care Insurance is not an all or nothing decision. Most policies offer flexibility to meet your needs and budget. You can select a daily or monthly benefit amount, the deductible, inflation protections as well as optional riders. But the most common mistake is waiting too long. The longer you wait, the greater the likelihood that health issues may arise which increase costs and perhaps even disqualify you.
So when is the right time to purchase a policy? In a perfect world, there would be a magic number. Most people wait for the point at which they need care, in their 60s or even 70s. But life is unpredictable. For example, we have a client who purchased a policy at age 43 with an annual premium of $1800. Three years later she was severely injured in an automobile accident; so far her policy has paid 1.2 million in benefits over the past 12 years.
I am a firm believer in being proactive, encouraging clients to weigh the benefits versus the risks while thinking about where they plan to retire, in what setting they would prefer to receive care and what future medical expenses will they be able to pay out of pocket. Planning is crucial to selecting the best long term care policy.
And I do believe that sooner is better than later. And since we will all have to do it later, why not do it now, taking advantage of a special offer for Chamber members.
For a limited time, you and your extended family, including parents, in-laws, grandparents and adult children can benefit from a 10% chamber discount in addition to a 30% discount when two partners (aka spouses, domestic partners and roommates) are covered, or a 15% discount when only one partner is covered.
For more information, please visit http://www.hackmeierinsurance.com or call (305) 893-4488.