Different Types of Long-Term Care Insurance Policies
You clicked on this blog because you’re considering a long-term care insurance policy. That’s a wonderful thing, especially if you are at the prime age to start a policy, which is right around 54 or 55. If you’re in your late 40s, don’t hesitate. It’s still a good time. If you’re in your late 50s or early 60s, don’t wait any longer.
You may have a lot of questions about long-term care insurance. Most of us do. It’s not something that the majority of people even think about until it’s too late, so the fact that you’re looking into this now is a testament to your willingness to be prepared for the future.
What does the future hold for you?
You have plans. You have goals. You may have been saving for retirement for years and years, squirreling away every extra penny for those Golden Years of life. Did you know, though, that almost 70 percent of people 65 or over will need some type of long-term care in the future (Forbes)?
That’s pretty staggering when you think about it. There are many different types of long-term care. The most common type people think about include nursing home care, assisted living, and in-home care support services.
One of the critical factors for somebody planning on retirement, who has been saving and investing wisely for many years, is to realize the cost of long-term care right now. Depending on the type of care, you could be looking at an average of $55,000 to per year, $85,000 per year, or even $300,000 per year or more, depending on where you live and several other factors.
How long could you pay for long-term care out of your own pocket? More importantly, how long would it be before your investments and savings are obliterated to the point you may have to return to work or become indigent because you can no longer afford the lifestyle you wanted to live in those Golden Years?
Now is the time to take action.
Long-term care insurance can help protect you for up to three years (based on the average policy). That means after a designated waiting period, the policy would begin to pay out and cover long-term care expenses.
If you decide to depend on Medicaid, for example, as many people assume they will, you would have to exhaust all of your available savings and assets before Medicaid would cover those long-term care expenses. Plus, in most states Medicaid is only going to cover nursing home care so if you wanted to remain home or be an assisted living, you’d be out of luck.
There are two basic long-term care insurance policy types to choose from. One is an independent long-term care insurance policy from whatever insurance provider you prefer or the other type you can choose is one as part of a life insurance plan.
As long as the policy is active, you would have to pay premiums to maintain it. Now, the best thing anyone can do when looking at long-term care insurance is to sit down with a licensed broker who’s experienced in this type of coverage to determine how long the policy will cover services for, the waiting period before it begins paying out and other factors that can help get your premium payments to a point you’re comfortable with.
If you or a loved one are considering Long-Term Care Insurance in Encinitas CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.
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