Let’s face it: no one wants to talk about, or even think about, long term care insurance. But what if I told you that long term care insurance has evolved? Today it’s not so much about going to a home, instead it’s about staying in your home, and maintaining your independence.
Below, we’ll look at why people buy long term care insurance, and how it can allow you to stay home longer than you may think.
People Buy Long Term Care Insurance Because They Want To Keep Their Independence
A friend recently asked me why a single mom, age 53, with little financial assets, would purchase long term care insurance. The answer was simple: she doesn’t want to be a burden to her children some day.
Other parents tell me they worked so hard to get the kids out of the house that they can’t fathom having to move in with them someday.
Regardless of whether you have children or not, as you get older, if you need assistance with daily activities, who will help?
For those who want to know they will have the funds available to pay for someone to help, long term care insurance may be the right solution.
You Don’t Have To Be Sick To Use Long Term Care Insurance Benefits
Long term care insurance benefits do not come into play just when you’re ill. They’re accessible when you can no longer manage two of your six activities of daily living.
The activities of daily living are eating, bathing, dressing, toileting, transferring and maintaining continence.
A loss of dexterity could mean you have trouble bathing and dressing, but it doesn’t mean it’s time to leave your home. The right policy would cover the cost of having someone come in and assist you.
Long Term Care Insurance Allows You To Stay In Your Home Longer
When you think of long term care insurance, you likely think of a facility; somewhere that’s not your home. The reality is most long term care policies today cover in-home care, as well as out-of-home care.
In 2007, over 1/3 of the claims paid were for home care services. Most people would prefer to stay in their home. Some people shy away from long term care insurance because they don’t realize that the right policy will potentially allow them stay in their home longer.
Buying Long Term Care Insurance Early May Result in Premium Discounts
The younger you are when you take out your long term care policy, the lower the monthly premium. In addition, you may qualify for a good health discount, which can result in savings on premiums of up to 10-20% a year. One out of five people who apply for long term care do not qualify, so it’s important to apply while you are healthy.
There is also the potential that when you buy your policy early, your premiums may be locked in at a lower rate. Although carriers do have the option to raise rates, look for carriers who have a history of raising rates on new policies, rather than going back and raising rates for existing policyholders. A good agent will be able to provide you with this information.
