Why do most people have insurance? If you have a registered vehicle on the road, most states require you to have automobile insurance. That’s not what we’re talking about here. What we’re referring to is “voluntary” insurance.
More specifically, long-term care insurance.
With most voluntary insurance policies, there is no guarantee you will receive any benefit five, 10, or even 50 years from now. Life insurance is different. Everyone will die. As long as you maintain your life insurance policy, when you die of natural causes or an accident, that policy will pay out to your designated beneficiaries.
As for every other type of insurance, what happens if you never need to file a claim? Essentially nothing. That insurance was just that: insurance.
Insurance is not an investment.
We need to be aware that insurance is not an investment in the future. It’s not like investing the stock market, a 401(k), CDs, or bonds. It’s not like putting your money in a savings account and letting it build up and gain interest for 20 or 30 years.
It is a policy that is designed to help protect you financially from some catastrophe, disaster, or event that could occur in the future (but that hopefully never does).
Long-term care insurance can help protect you and your spouse.
If you’re married, have raised children, and are approaching your retirement years in a decade or even less, long-term care insurance is certainly something you should be looking into now. The prime age to start a long-term care insurance policy is around 55.
If you wait beyond that, you run the risk of the policy premium increasing too much or even being denied coverage.
Ultimately, long-term care insurance is designed to help protect you and your spouse or other dependents in the event you or a covered individual under the policy requires long-term care.
What kinds of long-term care are covered?
Each long-term care insurance policy will be different, but for the most part they will provide the coverage option for assisted living, home care, nursing home care, etc.
Some policies will cover up to three years of long-term care. If you have no idea how much this could cost, just consider those living in Alaska.
A nursing home in Alaska could cost you over $300,000 per year. The average cost of assisted living in the United States is fast approaching $85,000 and by the time you retire could well be over $100,000.
For most people, three years of this might very well wipe them out financially, even forcing them to sell their home just to receive the care they need due to a heart attack, stroke, accident, or other health emergency.
We don’t know what tomorrow will bring, but when we have long-term care insurance, we can rest assured that we will have some coverage to protect against certain financial disasters.
If you or a loved-one are considering Long-Term Care Insurance Premiums in Rancho Bernardo CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
- Three Points to Consider to Help You Decide If Long-Term Care Insurance Is Right for You Now - February 24, 2020
- Is It Possible to Get Long-Term Care Insurance AFTER a Major Medical Emergency? - February 17, 2020
- Financial Planning in Your 50’s Should Consider Having Long-Term Care Insurance - February 10, 2020