PROS AND CONS OF BUYING LTC INSURANCE
A great number of American are still either not aware of Long Term Care Insurance or are under the impression that Medicare or their health insurance will cover the services of nursing homes or in home health care. The fact is that only Long Term Care Insurance policies pay for nursing home care and in home health care. If you don’t have LTC Insurance you will have to pay the high cost of care out of your pocket, which for in home care averages about $50,000 a year and for nursing home care averages about $80,000 a year.
Advantages and Disadvantages
- Are you a healthy person? Being healthy may mean you are actually more likely to need long term care assistance later in life. The people with health complications such as heart problems or cancer typically do not live as long as healthy people and therefore may have no need of long term care. One of the advantages of having long term care insurance is that it will allow you to stay in your home longer because it typically pays for in home care, rather than be forced to go to nursing home as an indigent on Medicaid
- What is your family’s health history? What is the health of your grandparents, parents, siblings, aunts and uncles? What is their longevity? Has any of your family needed care in a nursing home? What if they had needed care, who would have been there to help them? How would that have affected the family? One of the advantages of long term care insurance is that it will reduce the severe burden of care on your loved ones, who may not be able to take off of work to provide care for you.
- Are you willing to spend down all your assets and become a dependent of the State? What would happen if you slipped and broke your hip, as many senior citizens do? You can’t take care of yourself, your children are not living in your hometown anymore, and you don’t want to move in with a family member. Who would help and how would you pay for their help? Full time assistance can run $6000 a month and even more if medical care is needed. Are you willing to lose your estate and become penniless, lose control of your life, not have a choice about your nursing home placement, and become a ward of the State who has an allotment of just $40 a month?
- Can you afford a premium that provides a reasonable amount of coverage? Long term care has many adjustable features like buying a car. For example, when you buy a car, you can get all the extras or you can just buy a base model that cost much less but still provides decent transportation. After all it is better to have some long term care protection than nothing at all. The major disadvantage of long term care insurance is that you may pay premiums, but never use the coverage. You probably pay homeowners insurance for years, and you have to ask yourself, if you are upset that your home never burned down and that you have never used your insurance?
The lifetime probability of becoming disabled or of being cognitively impaired is 68% for people age 65 and older. It is always good to look at statistics, but your personal odds are literally either zero or 100%. It is a gamble, but usually the amount of the premium is usually small compared with the consequences if you do not buy long term care insurance.
You have to give up something to receive something. What typically people give up is money they could have invested in the stock market or taken a vacation with. What you receive in return is peace of mind and dignity knowing that you can choose where and how to receive health care, dignity knowing that you can take care of yourself and especially your spouse without burdening your loved ones, dignity that you won’t become penniless and destitute and a ward of the state, especially when all these years you have been self-sufficient. Click on “FREE QUOTE NOW” button below to receive a no obligation quotation.
comparison guide for LTC Policies in the USA today
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Carriers quoted will vary from state to state.)