Who Can Afford Long Term Care Insurance
No one can argue that long term care insurance is a necessity in people’s lives but the fact remains that not everybody can afford it. So, the question at hand is who should buy long term care insurance?
To summarize what the experts said, people who are capable of maintaining an annual premium which ranges from $1,500 to $6,000 are qualified to purchase a long term care insurance (LTCI) policy. In point of fact, any individual whose total amount of assets is lower than $100,000 is discouraged from buying a policy because he could wind up using up all of his money for the premium of his coverage.
Though basically encouraged only to those with a good amount of assets, there are members of the Generation X who have managed to secure a policy in spite of having little or no assets at all. Most of them took advantage of the employer-sponsored group LTCI policy which is better than not having any form of coverage.
Buying a policy at the age of 50 or 55 will subject an individual to an annual premium which is a little over $1,000 while those individuals 75 years of age will be paying close to $6,000 so if you are planning to secure an LTCI policy for your future, purchase today because every time you defer it you make yourself at risk of higher annual premium.
Lucky are those 30 and 40-somethings who have managed to secure LTCI policies at their very young age because they are spending less than $900 on premiums. Most of these youngsters have witnessed the ordeal of their grandparents while receiving care since all of their assets were wiped out by the expenses that they have incurred from nursing home care and in-home care.
Fear is, indeed, one good motivational tool to get people to plan their future health care but it is not always effective as it can lead to disorientation. People cannot think clearly once their minds are clouded by fear, negativism and apprehension.
LTC planning should start with a positive mind; it should be founded on the desire to grow old in comfort and financial freedom.
Who Should Buy Long Term Care Insurance?
Aside from those with lucrative jobs and businesses, individuals who are genetically predisposed to serious health disorders such as Alzheimer’s disease, high blood pressure, diabetes, Parkinson’s disease, and heart diseases should definitely consider LTCI because there is no doubt that they will require longer years of care.
What’s more, most people with the above-mentioned maladies require nursing home care which is far from affordable. At present the national median annual rate of a nursing home is $77,745 but if the cost of care in your state of residence is higher you might even end up forking out more than $100,000 for a year’s stay in a private nursing home room.
Long term care used to be optional before as not many people lived to their 100th birthday. Nowadays, people are living longer and thus making them more susceptible to geriatric diseases. If you want to grow old happy and contented, perhaps you know well enough who should buy long term care insurance.
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