Some young people think investing in a long term care insurance (LTCI) policy is unnecessary at this point of time since they are still strong, healthy and earning a regular paycheck. They think by the time they would require long term care (LTC) they have stashed away millions of dollars.
Unfortunately, that is just too close to impossible because statistics show that majority of Americans who have retired had less than $100,000 in savings. This is not even enough to cover a year’s stay in a nursing home especially if one is living in the mid-Atlantic region where the cost of care is soaring rapidly.
Having an LTCI policy will enable an individual to pay his LTC expenses whether these were incurred at home, in a nursing facility or elsewhere. It is a big mistake to think that an LTCI policy can be purchased anytime. In fact, most people who had this belief only wound up with no coverage. Keep in mind that insurance companies are very particular about an individual’s health condition so the younger you are the quicker that you’ll be able to clinch a policy that is within your budget. If you apply for a policy after you have retired from your longtime job you will only end up receiving a rated coverage.
Do not wait for that day or perhaps when you can no longer perform your everyday activities like bathing, dressing, eating, and the simple act of transferring from the bed to a chair or vice versa before buying your LTCI policy. Your chances of needing it, after all, are high as the Department of Health and Human Services has reported that 70% of the 65 and over population will require LTC services at some point in their lives.
Buying a Long Term Care Insurance Policy
Your age and health will determine the price of your LTCI policy so it is best to buy before you become a full-fledged senior citizen. Research has shown that policyholders in their 40s are spending less than $1,500 on their annual premiums. Meanwhile, those who are in the line of 50s are spending less than $2,000 for their coverage. Unfortunately, policyholders from 65 onwards are forced to fork out between $2,000 and $7,000 every year.
The younger and healthier you are, the less that you are likely to spend for your coverage there is no better time than today to look into your LTCI policy options.
Insurance companies offer three major types of LTCI policies and each is designed for a specific individual’s unique set of health care needs. In-home care will be enough for some people while others will need years of nursing home care. To find out which LTCI policy is going to be right for you, you need to identify your LYC needs first.
Experts strongly advise you to have a licensed physician assess your present health condition and your family’s health history, as the results will eventually lead to the level of care that you might possibly need someday.
After identifying your LTC requirements, check out the rates of each LTC services in your area. Gather the figures so that you will be able to come up with the future costs of care.
No other product works like long term care insurance so while you still have the capacity to get yourself a policy, do it. Should you need assistance, contact a licensed insurance specialist who is connected with the country’s top LTCI carriers.