THE INSURANCE SERIES | PART 4

Today I want to talk to you about a very important piece of a financial plan, that I find a lot of people are missing: Long Term Care Insurance.

Long Term Care Insurance is a type of insurance that will help cover the cost of helping you care for yourself if you are no longer able to perform daily tasks such as bathing, eating, and dressing.  

Care is provided either at home, in an assisted living facility, or a skilled nursing environment.  By the time you are 65, chances are about 50/50 that you will need this type of care.  Many people are under the false impression that Medicare will cover these costs if this type of care is needed, and unfortunately, that just isn’t the case.

There are a few important things to consider when applying for long term care: two being: your age and health.  The typical time to purchase LTC is in your early 50’s.  Ideally, you will want to be in good health, because like life insurance, your health will affect the price you pay.  The cost is also something to consider.  Often times, LTC policies increase in price over time.  If you don’t have sufficient income to pay the premiums, you don’t want the policy to lapse and lose all of the money you have paid in over time.  

Finally, consider your support system.  You may have friends and family members who can help provide this type of care if needed.  If LTC is not an option for you, you may want to speak to them about how much care you can reasonably expect them to provide.

Also, if you have parents who may need support in the event of an illness, you may want to speak to them about looking into purchasing long term care insurance.  Or, if they already have long term care, ask them to share a copy of their policy with you so you can be prepared if you need it.

Not only does this type of insurance help financially with these type of costs, it can also greatly reduce the stress of what would happen in the event of needing care.

If you have questions about LTC Insurance or would like me to take a look at your existing policy to explain the details, don’t hesitate to reach out to me!  This is something I provide for my clients.

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