Long term care insurance is something that many people do not consider adding to their insurance package until it is too late. Long term care insurance can help individuals that have suffered disabling injuries or that can no longer tend to activities of daily living due to advanced age receive needed assistance without paying astronomical out of pocket costs. Purchasing long term care insurance while still young and healthy may be part of a sensible plan for aging.
Why Purchase While Young?
Unlike health insurance, long term care insurance can be denied to individuals based on pre-existing conditions and a less-than-stellar medical history. Even for individuals that have minor medical issues, long term care insurance may become a hassle to purchase because the rates can be high. Purchasing while you are relatively young and healthy (usually 50s or 60s) may help to ensure that you are eligible and can protect you when you actually do need it. Optional inflation protection can protect against rising care costs.
Is Long Term Care Insurance Really Necessary?
About 70 percent of individuals over the age of 65 require some type of long term care assistance. In many cases, elderly and disabled individuals exhaust savings and become impoverished trying to pay for this expensive care. When no longer able to cover long term care assistance, individuals may become eligible for government aid, but the quality of care may not be the same. Purchasing long term care may help to maintain a certain standard of living and preserve an estate for heirs.
What Does Long Term Care Cover?
Long term care covers expenses such as home senior care assistance or the fees for a room in a nursing home. With the average cost of a room in a nursing home being about $80,000 a year and home care generally costing at least $100 per day, long term care insurance can come in handy. Even if long term care insurance doesn’t cover the entire cost of needed assistance, out of pocket expenses can be mitigated substantially.
Tailoring Policy to Needs
Long term care insurance needs can be difficult to estimate, as the insurance is typically not needed until quite a few years after the policy is purchased. In some cases, insurance companies may offer hybrid policies that combine long term care insurance, life insurance, and annuities to provide a more complete retirement planning package and decrease premium costs. An experienced insurance agent may be able to assist with finding the policy that is right for you.
Call Murray Insurance today to discuss long term care insurance options!