Reasons You Need Long-Term Care Coverage

Long-Term Care is hardly on the average person’s mind until it comes time to use it. Today, up to 70% of people 65 and older will need Long-Term Care at some point, and if they are not insured for it, they will be required to pay out of pocket. Long-Term Care costs continue to skyrocket, driving up the need to purchase Long-Term Care insurance.
Without insurance, Long-Term Care recipients would need to possess assets that generate $100,000 to $150,000 in additional funds specifically set aside for Long-Term Care. A vast majority of people do not have these kinds of assets or funds available, deflecting the costs of Long-Term Care to family members, if available. Given the structure of Long-Term Care plans, purchasing Long-Term Care insurance at an early date can provide a world of benefits.
Applying for Long-Term Care insurance early can increase your odds of getting coverage and can increase the value of your plan. Nearly 57% of those over the age of 80 that apply for Long-Term Care insurance are denied coverage. Only 11% of those between 50 and 59 are denied. Do not wait to purchase insurance until it is too late.
Purchasing Long-Term Care insurance is like getting a lump sum that you can dip into whenever necessary. If you purchased a policy valued at $600,000 and used $30,000 for whatever reason, you would still have $570,000 leftover to use. When 20% of insured’s require more than 5 years of Long-Term Care, insurance is a worthwhile investment. Buyers also have the option of including inflation protection to guard against rising price indices. As policies operate using daily benefit limits, inflation protection increases these benefits as price levels change. In addition, Long-Term Care insurance plans offer the option of either reimbursement or indemnity benefits. Reimbursements benefits cover actual expenses up to a daily limit, whereas indemnity provides a specific daily amount.
Odds are that at some point in your life, you will need Long-Term Care. Why absorb the costs of the care yourself? At Murray & MacDonald, we have available some of the most renowned Life and Long-Term Care insurance companies including John Hancock, Met Life, and Guardian Life; and certified professionals to serve your needs.

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3 thoughts on “Reasons You Need Long-Term Care Coverage

  1. My mother died last month from Alzheimer's. I am so glad my father bought long-term care insurance. Because he had the insurance, we were able to put mom in an excellent facility that only cares for Alzheimer's patients and has wonderful, caring staff. Mom was so happy there I feel like she died at home, not in an institution. We never would have been able to afford the $6,000+ a month it cost without dad selling his paid-for house and exhausting his retirement funds. It also made the always-difficult decision to place mom in a facility easier for my dad, not only because he didn't have to worry about how he was going to pay for it, but because having the insurance meant he could afford to put her in a high-quality facility and be comfortable that she was being well cared for. I have recommended this facility – Clare Bridge of Carmel – to several people who have parents with Alzheimer's. All the responses have been the same: We don't have long-term care insurance, we can't afford it. Having a parent or spouse with Alzheimer's is a crushing enough experience; I can't imagine compounding the pain of that disease with having to bankrupt yourself to pay for your loved-one's care.
    – Tom

  2. There are tons of reasons why you should get one. The trick to it is to buy it as early as possible. But you need to consult a good financial planner for advice to know what is best for you.

  3. I'm in the LTC business and from a professional and personal standpoint, it's a product I firmly believe in. I've watched as family members in their 60's have had to use care after complications from joint replacements or even those in the best of their health in their 90s slowly start to deteriorate. This is not only hard on the family pocketbook, but can do untold damage to the surviving relationships of the children. And that is something you never see in any article arguing for or against long term care insurance. People want to protect their family with life insurance and this is just another piece of mind.

    According to Kiplinger's, after the age of 65, women have a 2.6% chance of a major house fire and 72% chance of needing long term care. Sure, homeowners insurance is cheaper relative to LTC insurance, but the risk of needing it are much greater. Certainly people should take a hard look at their own health situation (obesity, heart history, Alzheimer's, etc) in weighing the insurance option, but it is something all should take a hard look at purchasing.

    – Tom

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