Being diligent about one’s future is smart. What does that mean, though? Many people invest in a variety of investments, including an employer managed 401(k) program, the stock market, bonds, CDs, and more. Some people save diligently every single paycheck, putting aside three or five or 10 % of their income in cash, they buy gold, or now crypto currencies. Most people though don’t consider the prospect of requiring some type of long-term care in their future or the advantages of having long-term care insurance coverage.
However, even the most diligent individual who saved their entire life can face a very real prospect of losing it all within a matter of a few short years, if they don’t plan properly for what the future may bring.
Long-term care could be required for a number of reasons, including an accident, medical emergency, stroke, or simply living to the ripe old age of 90 or 95 or 105 where one’s physical abilities have declined so much they require nonstop senior care.
While somebody in their 90s or even beyond might not be too concerned about their savings and investments, or maybe they’ve already outlived them, what about somebody in their mid-to-late 60s or early 70s who was planning to travel, but suddenly finds themselves strapped down by all of these debts the continue piling all around them?
Below are a few key advantages that men and women who have long-term care insurance gain over those who don’t.
It protects future assets.
A lot of people assume that when they own a home that it’s an asset. The only time that real estate is an asset is when it is fully paid off. That means no mortgage.
While you might be in your 40s or 50s right now and are carrying a mortgage, you might assume your house is an asset, but it’s not. There may very well be equity there, but what happens if you lose your job, face a serious medical issue, and have no way to pay the mortgage? What if the bank forecloses? Is it still an asset?
No, it’s a liability. Yet, maybe in 10 years, the house will be fully paid off at which point it would be an asset. Long-term care insurance can help protect that asset in the event you or your spouse or other dependent requires long-term care at some point in the future.
Having a plan for the unexpected.
Just because you may have a long-term care insurance policy doesn’t mean you’ll need it. However, what if something happens and you do? Many people assume Medicaid will cover these long-term care expenses, but it won’t, not until you have used up all of your available assets and savings first. Having this type of insurance policy is an insight into having a plan for the unexpected.
You gain more control should long-term care be needed. In the future, should you or your spouse or other dependent require long-term care, with the right policy, you can decide which type of long-term care is best. You won’t be relegated to having somebody else decide for you.
When you have a long-term care insurance policy, you take advantage of some wonderful benefits.