Long Term Care Insurance
One of the more common questions we get asked here at Legacy Planning Group is “Will I need long-term care insurance?” What is Long Term Care Insurance? Long-term care insurance (LTC or LTCI), an insurance product that helps provide for the cost of long-term care beyond a predetermined period. Long-term care insurance covers care generally not covered by health insurance, Medicare, or Medicaid. When asked that question, we consult the LPG all-knowing crystal ball that sits in the middle of our meeting room and provide a client-specific, infallible answer. Alright, that may not be exactly true. Usually our response is, “Let’s look at the big picture facts, and then review your options.”
Here are the big picture facts: More than two-thirds of individuals 65 and older will require some kind of long-term care, according to experts. Currently, 12 million Americans need long-term care. By 2050, that number is expected to more than double, to 27 million. National median average costs for nursing home care today is over $87,000 per year, while assisted living averages $42,000/year.
These are just a few of the many staggering facts about the long-term care crisis that this country is facing. As listed above, costs associated with nursing homes and long-term care can quickly drain all forms of savings. Long-term care insurance can be an important tool to transfer the risk. Years ago long-term care insurance operated similar to disability policies – you paid for the policy on a monthly or annual basis, and if you used it, great – if not, you paid the premiums for no benefit. So when the idea of long-term care insurance is presented, we many times hear responses like, “I would like to protect my assets and savings, but I hate the idea of paying expensive monthly premiums for a policy I may never use.”
The good news is that the traditional “use it or lose it” long-term care insurance policy is not the only coverage option. Now there are a number of long-term care insurance options in the market place today that fit the needs of almost anyone seeking a policy. In summary, long-term care needs are quickly changing from an IF to a WHEN, so the main question now is: “how will you cover those costs?”
We’d be happy to schedule a time for you to come in and review your options.
All guarantees are subject to the claims paying ability of the issuing insurance company.