Buying LT Care Insurance Can Be Daunting – Here’s What You Should Know

Buying LT Care Insurance Can Be Daunting – Here’s What You Should Know

The dream of retirement – she ain’t what she used to be.

There was a time when people hoped for a few blessed years of care-free ease. That wasn’t so much to hope for, back in the good old days, when people didn’t live so long. Nowadays, we must deal with the longevity trend: with good health habits we can last decades longer than our forbearers. This comes at a cost. 

Take long-term healthcare costs: most Americans who make it into senior citizenship will need it at some point. LT care is expensive, averaging more than $100,000 per year. It seems most people need a LT care insurance policy, if only to sleep soundly at night.

LT care policies can be a tough buy. Myriad varieties are on offer, and that’s the trouble. The choices are complex and premiums high and rising. Before you proceed, here’s four questions to consider. 

First, determine if you really need coverage: insurance doesn’t fit the bill for everyone. People with $2 million in their retirement accounts can usually cover two years of LT care on their own – no need to pay elevated premiums. If you have less than $150,000, perhaps counterintuitively, it might make better sense to rely Medicaid and state programs, rather than take on the cost of coverage. 

Family history is part of this equation, too. Does your family live a long time? Is there a history of dementia, heart disease or cancer? History doesn’t tell all, but it can be an informative guide on whether to insure or not, and how much coverage would realistically be needed. 

For more, please see:
4 Questions to Ask When Shopping for Long-Term Care Insurance | The Motley Fool

 

Suddenly, Grandad Wants Life Insurance – Here’s Why and How to Get It Helping HNW Clients Decide to Self-Insure Against LT Care Costs – or Not