Maintain Resistance to Long Term Care Costs –

Everyone will be subjected to the high costs of care because he will need care one way or another for the reason that no one stays young forever.  However, it is not impossible to be resistant to these costs through a long term care insurance policy.  If you’re wondering what is long term care insurance, it just happens to be the most important investment that people can make to protect their finances.

In just a matter of 18 years, the youngest member of the baby boomer generation will turn 65 and the country will have a total of 70 million elderly people by then.  Members of the baby boomer generation are expected to live beyond their 80s so they are constantly pressured to plan their future health care needs because as people get older, they become less healthy owing to their weakened immune system.

At present, an elderly person receiving assistance with his routine activities of daily living (ADL) such as bathing, eating, dressing, and transferring among others, pays $19 per hour which translates to $41,472 according to Genworth Financial’s latest Cost of Care Survey.  These figures are not yet inclusive of homemaker services, which involve household chores performed by a personal care assistant in behalf of the long term care recipient, with an hourly rate of $18 or $41,184 annually.

Anyone who decides to self-insure is at risk of wiping out his entire nest egg to LTC costs in just a year’s time.  The costs of in-home care services such as those sighted above are expected to quadruple along with that of other long term care facilities like nursing homes, assisted living, and adult day health care centers to name a few.


What is Long Term Care Insurance and Should I Buy it?

Long term care insurance (LTCI) policies pay for a wide range of LTC services for a predetermined time.

For example, a young executive has managed to secure a comprehensive policy which stipulates a maximum daily benefit amount of $250 and a three-year benefit period.  Five years after his retirement an event triggers his need for care and so all the expenses that he shall incur at home or in an LTC facility shall be paid for by his policy until he has completely exhausted his benefits.

Although an ideal investment, not everyone can afford LTCI because it can cost thousands of dollars.  However, those people who are earning $75,000 or more in a year are advised to inquire about the possibility of them receiving coverage.

It has to be noted that one’s LTCI coverage should depend on his future heath care needs and the cost of care where he lives.  Choosing an LTCI policy simply by chance could cost a policyholder more in premium, with the worst case scenario of not receiving the kind of coverage that he badly needs.

To ensure that you get exactly what you paid for, do not hesitate to study your LTCI policy options first.  If you need to ask what is long term care insurance again and again until you get an answer that leaves your mind with no gap for confusion to fill, do so.





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