Looking into a long-term care insurance policy if you have never done this before can feel confusing. That’s going to be the case with many types of insurance, including life insurance, for example. For somebody who has never looked into life insurance, they probably have no idea of the difference between whole life and term life. The same can be true for long-term care insurance. While this type of insurance is incredibly valuable and can provide a person financial support to pay for personal care at home, for example, in your 40’s or 50’s you may not be thinking you’ll ever need it and that you do not want to incur the long-term care insurance cost of the policy too early..
Yet, by the time a person is 55, they have hit the ‘sweet spot’ for this type of insurance. That means when you are 55 years of age, that is the optimal time to begin a long-term care insurance policy because risk and policy cost are at optimal levels. Beyond that, for the average individual, the risk increases (for needing some type of long-term care) and, therefore, the long-term care insurance cost of the policy will also likely increase.
Of course, if a person has a family history of serious health issues, like heart attack, heart disease, stroke, dementia, and so forth, then they may want to look into a long-term care insurance policy sooner than 55.
Now, let’s look at three key points you might want to focus on when considering a long-term care insurance policy and long-term care insurance cost.
1. The length of policy payout.
You may be given options with regard to how long a long-term care insurance policy will pay out for. The optimal time seems to be around three years. Some might choose a one year payout period simply because they want to save money on the policy itself.
However, if you need some type of long-term care in the future due to injuries sustained in a car accident, for example, a stroke, or other medical emergency, you might very well be dependent on nursing home care and then in-home care for one, two, three years, or even longer.
Choose the policy that makes the most sense, not for right now, but your future.
2. When does the policy start paying out?
Most long-term care insurance policies will have a waiting period. This means that if you need long-term care, you might have to pay for it out of your pocket for the first couple of months. This waiting period may be 60 days or 90 days or 120 days or some other length of time.
The more the policy is delayed in beginning to pay out, the more it may lower your monthly premium. Just make sure you can afford long-term care for that waiting period.
3. At what age will it begin covering expenses?
Every policy is different and you may choose a policy that will provide coverage for long-term care until you reach a certain age, such as 60 or 65, for example.
When you look at these points and you discuss a policy with a qualified and fully licensed broker or agent, you should be able to choose the one that is best for you and your family now and into the future.