Long-term care insurance is not often thought about—until it’s needed. As dynamite of a planner as you may be, even the most thorough plans may not prepare you for the costs associated with long-term care— whether the cost is expected with age or unexpected with an unfortunate turn of events.
What is Long-Term Care?
With many Americans living longer, you may one day need help with activities of daily living. Getting additional assistance, whether in-home or within an assisted living community, is a form of long-term care. Long-term care will help you maintain your lifestyle if age, injury, illness or cognitive impairment prevents you from doing it on your own.
Who needs Long Term Insurance?
Long-term care can be very expensive. But long-term care insurance helps you to pay for it. This type of insurance is best served when started early before you approach the time of potentially needing it at an advanced age. Further, life’s events cannot always be anticipated especially when you’re younger. And unfortunately, things still happen expectantly that can impact your lifestyle and your quality of life. Long-term care can help cover the costs if an unexpected medical event happens. Long-term care insurance takes on the expense that often normal health insurance will not cover and this includes Medicare.
Seventy percent of people turning 65 can expect to use some form of long-term care during their lives, according to the U.S. Administration on Aging. However, according to AARP poll, 70% of adults also incorrectly believe that Medicare will cover the cost of custodial long-term care. Long-Term Care insurance helps you to be prepared! Just like with your 401k retirement savings, you should start as consider long-term care insurance as an extension of your retirement plan.
Where do you get long-term care?
As with any type of insurance, you should shop around and compare rates. Look at all products as it relates to your budget and your potential need. Like all insurance, you should do due diligence and pay close attention to the policies terms and conditions, and pay special attention to the deductible. There may be restrictions on the types of care or living environments covered. There could also be a hefty deductible required before the insurance kicks in.
The bottom line is that you should start your research now. The earlier you buy long-term care insurance, the less expensive it will be. Start shopping for long-term care insurance no later than your late forties when you are still young enough to qualify for an inexpensive policy. However, if you are older, all is not lost. US News suggests that if you are nearing your retirement there might be options to merge your life insurance coverage with your long-term care insurance. Getting creative may allow you to replace one line item with another.
If you want to learn more about long-term care insurance, Dogwood Forest of Grayson can help. We are an educational resource and will put you in contact with long-term experts to help you along the way. Call us today at 678-496-2319. www.dogwood-forest.com/Grayson
