Long Term Care Insurance. Do I Need It?

This YouTube video channel provides useful information on long term care insurance (LTC).  It aims to help people better understand what LTC is by offering resources on who needs long term care insurance.

 

See here if you’re one of those who needs long term care insurance.

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The Staggering Costs of Long Term Care Insurance

 

Just when people start to realize the need for a long term care insurance, they might be doubtful and hesitant again when they learn about its costs.  Yearly, the price of LTC policies continue to rise.  Premiums have seen a 6 to 17% increase as compared in 2011 and are shocking policyholders and interested buyers.

This is one of the reason why people are thinking twice about LTC.  Some ask for long term care insurance quotes, and just by seeing the numbers, they can already decide that the cost is too much, and probably they really do not need LTC insurance. (Do You Really Need Long Term Care?)

However, there are various ways to save on premiums such as health discounts, spousal discounts, group discounts, tax deductions, and annual premium payments.  If buyers will be informed about this, it may help them in coming up with better decisions.  Here’s a more detailed discussion on how to save on long term care premiums.

Find an Employer that Provides Long Term Care

In a press release published by HighRoads in PRWeb reveals that more and more employers are removing their long term care(LTC)  options for their workers as insurers begin to exit the market.  Employers can surely get great benefits from employers providing LTC as part of their workers health care benefits package but with this news, it seems like only a few employers will be offering this now.

Of the companies surveyed, 51% provide LTC while the remaining 49% do not.  Half of the companies who responded and dropped LTC mentioned that the main reason is the fact that the insurance carrier who offered the coverage has already left the market.  While this news might be quite alarming, there is still hope for employees to find an employer that offer the long term care benefit as based on the study, 96% of those company that responded said that they will continue with that benefit package.

 

Government Not Ready for Increasing Long Term Care Needs?

While the government is trying its best to provide for the nation’s long term care (LTC) needs, the continuous escalation of  prices of LTC services are putting a strain on the government’s healthcare spending.  According to an article posted at Senior Housing News and Reverse Mortgage Daily, while the country’s senior population is growing, the government may not be ready for it as their benefit programs such as Medicare and Social Security are also facing deficit problems.

The Possibility of Needing Long Term Care in the Future

Nobody knows what can happen tomorrow.  Everyone is exposed to health risks and have equal chances of needing long term care (LTC) in the future.  This is why you should not discard LTC insurance in your choice of health care plans.

With this news, seniors should strive to be financially ready for long term care costs.  Planning early for future health care is really important.  Like other health insurances, LTC must also be availed prior to a buyer’s need for the services stated in the policy.  There can really be a chance that one may not need it, but it is better to be prepared in the future.  One may think that his chances of being disabled are very low today, yet, he may get into an accident and become physically impaired.

So as early as now, try to ask, do you really need long term care? Without an insurance to help you shoulder the staggering costs, it is possible to experience financial devastation.  Get long term care quotes today.

Quick Guide to Long Term Care Costs by State

The cost of long term care (LTC) is one of the main concerns of interested policy buyers.  But most of them do not know where to find them.  Consumers, specially those who lack time, do their searches online.

While search engines can turn in relevant results, to make it easier for users, there are LTC insurance company websites that provide quick links to LTC costs by state.  I have personally tried visiting the long term care costs by state page of a company called Complete Long Term Care.  I was researching to help a friend find a nursing home for her dad.  They were from Texas but they were also considering nearby states specially those that offer cheaper monthly rates.

Searching nursing homes one by one in different states was time consuming.  Good thing i got into the page wherein they already have the links to the LTC info in all 50 states.  You can find there monthly rates for assisted living facilities, private and semi-private rooms in nursing homes, and daily rates for home health aides.

The site also gives free long term care insurance quotes as well as useful LTC resources.  It’s worth visiting and you can quickly find what you’re looking for.  You can also visit other sites to gather additional info and compare quotes.

Best Plan for Tomorrow’s Cost of Care

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.