3 Steps To Buying a Long Term Care Insurance Plan That Suits Your Needs
Long Term Care (LTC) isn’t a preserve for aging baby boomers anymore. 37% of the more than 8 million Americans who receive Long Term Care services each year are people below the age of 65. Furthermore, one in three American workers (whose parents are aging) has had to shoulder the burden of financing long-term care.
It’s apparent that this form of care becomes a pressing need for more Americans every day. But there’s a strategic way out. Financial planners have agreed that buying Long Term Care insurance is one of the best ways to safeguard one’s wealth from the devastating cost of long-term care in this country. Hey, it’s in the news a lot lately.
Below are some 3 simple steps to purchase an LTC insurance plan that’s ideal for you or your loved ones.
1. Assess your risk
There are dozens of insurance firms selling LTC policies out there. Before you can even think about finding the right coverage for you, take the time to assess the nature and magnitude of the risk you’re trying to get covered. That means you have to weigh in factors such as your health, family longevity, hereditary conditions, personal preferences, and availability of caregivers within the family. If you have members of the family who can offer at-home care, you might just need a limited policy. On the other hand, a comprehensive policy that pays for most of your bills at a care facility costs more. LTC insurance policies have various riders/benefits that you should learn about.
To sum it up, taking the time to assess your specific risk and circumstances will help you choose a policy that suits your needs.
2. Navigate policy considerations
Now that you have identified what risk you want to cover, it’s time to understand what the contract says. First, think about how much of the risk you want to push to the insurer, and how much of it you do want to cover yourself. When buying a policy, you’re going to have to select a deductible (elimination period). This is essentially the duration of time (in days) between when you’re eligible for benefits, and when your insurer starts to pay. Most policies have a 90-day deductible.
The longer the deductible, the lower your policy premiums will be. But keep in mind that you’d have to foot the care costs all through till the insurance company starts paying. Another important cost-reducing factor is to buy LTC insurance early, or when you’re in good health.
It’s important that you buy a policy that has compound inflation protection.
3. Choose a policy you can afford
Many American workers are familiar with group plans that are usually peddled in their places of work. I recommend that you keep away from these and instead opt for an individual policy. Different insurers will charge different premiums for similar plans, so you need to do your homework to find out who’s got the best deal for you. An easy way to choose a policy you can afford is by using a comparison platform such as comparelongtermcare.org, which allows you to review plans from different bluechip providers right from the comfort of your home.
People who feel strongly about getting quality care if need be may find LTC coverage to be well worth it. LTC Insurance also makes great sense for working-class Americans who’re currently taking care of their aging parents.