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.

Is Long Term Care Insurance the Best Option for You?

While long term care insurance can surely provide for your long term care needs once you need it and it may hold a lot of promises for your premium care, be sure to still research on it before buying long term care plans.

Sometimes we get too impulsive, making quick decisions or easy purchases, but buying a long term care insurance should not come very easy.  The long term care system is quite complex and there’s a lot to understand.  Most of the times, the terms or policies can be easily understood but there are some that would really need better explanations specially from experts like financial managers, insurance agents, LTC experts, etc.  Gathering all the resources you’ll need and understanding them can help you arrive at better and wiser decisions.

There are websites that offer complete information about this type of insurance and the available care options that it covers.  You can learn about long term care insurance costs in your state, how to save on premiums, and you can even get a free long term care quote.

Based on what you’ll learn, try to analyze your needs and see if LTC insurance is really the answer to those needs.

Try to visit CompleteLongTermCare.com.  It offers very useful and helpful resources on long term care planning and buying.

Long Term Care Costs in the Heart of Dixie

If you’re living in Alabama, fondly called Heart of Dixie, and are planning for your long term care, here are some of the most important things that you have to know about long term care costs.

Alabama Partnership Program

Thank God for the Alabama Long Term Care Insurance Partnership Program which became effective in March 1, 2009, Alabama residents can expect reliable assistance in paying for their long term care costs.  Similarly, they can also protect their assets from spend down requirements.  With the collaboration of Alabama Medicaid Agency and the Alabama Department of Insurance, residents can better plan and prepare for their future care needs.

Cost of Care in Alabama

According to Genworth’s 2011 Cost of Care Survey, Licensed Homemaker Services in this state has an hourly rate that ranges $12 to $25.  As for Licensed Home Health Aides, the figures are quite the same coming from $13 and reaching up to $25.  But if you’re planning to get into an Adult Day Care, daily rate ranges between $16 to $55.

On the other hand, in Assisted Living Facilities, expect to pay thousands of dollars.  For single occupancy, monthly rates are at $1600 to $4950.  In the case of nursing homes, the costs for semi-private and private room are almost the same so it’s better to choose the private.  The minimum daily rate for semi is $130 while its $132 for the other.  But for the max daily rate, semi is at $233 while private is $10 higher at $243.

If you want to know more about LTC services and their costs, visit LTC.gov or contact your state’s health department.  For a long term care quote, contact a preferred insurance carrier within your region.

Comparing Long Term Care Quotes

Before buying a long term care insurance, be sure to ask for free quotes first.  This is to allow you to scout for the best prices and be able to compare which of the carriers can provide you the best deal.  Most of the time, companies provide a free long term care quote.  For customer convenience, company websites usually have a page for LTC quotes.

There is an online form that can be easily accomplished to ask for quotes.  One just have to fill in his or her name, her age, her address, the state he or she lives in, and her contact details.  The state where you live in is another factor for there long term care costs by state.  After receiving the quote from one insurance company, try to request again but this time from other companies.  As a consumer you have the choice to buy your plan on a reliable company which also offers the most competitive price.

Here is an example of an online long term care quote form.

Similarly, visit longtermcare.gov if you want to have additional long term care information.

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.

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.