I’ve read many times before that long term care insurance (LCTI) is a practical investment since it provides important coverage which is not available with regular health insurance and other federal health care programs.
However, I’ve also read countless times that LTCI is not for everybody and this stuck in my head because as a planner I only want to look at the practical side of things. After conducting an in-depth research, I found out that anybody with an annual income which is below $75,000 is not advised to put his money on an LTCI policy because he will only end up discontinuing his annual premium.
Experts do not also encourage the product to elderly folks who are past the age of 85 unless they are financially equipped and capable of paying out $10,000 or more for their annual premiums.
Personally, I agree that buying a policy at the age of 85 or at an older age is pointless because you will risk all of your assets for the cost of your policy but in the end you won’t benefit anything as your policy will probably lapse, anyway.
Buying a long term care insurance policy should be done while one is young, healthy and active at work which now takes me to my second point. One’s total annual income is definitely worth considering before buying a policy but it would be unfair to forbid everybody who has an annual income that is lower than $74,000 from purchasing such an important product that will help him hedge the high cost of care.
LTCI policies are, after all, negotiable so it does not mean a buyer has to invest his money into a policy that will provide complete coverage. He can opt for a lower benefit amount, shorter benefit period and a simple inflation protection if he wants to save on his annual premium. Partial LTCI coverage is, after all, better than not having any type of coverage at all.
Aside from cutting down the variables or components of his policy, a policyholder can also make certain adjustments to his lifestyle so that he can put away or save more money for the aggregated amount of his LTCI premium.
Just recently I read an online article about the increasing number of Americans who plan to work until the age of 80 because the cost of care and Medicaid cutbacks continue to threaten their finances.
I can’t help but feel pity for these people but at the same time, reading their opinions had made me realize that long term care insurance is a product designed for people who have mustered the courage to alter their lifestyle so that they can experience topnotch care someday and be certain that the days, months and years after their retirement days will be absolutely financially free.
If you’re one of those people who wants to plan for their future health care, start window-shopping for long term care insurance policies today.