How Much Should You Spend For Long Term Care Insurance?
Although it is given that long term care insurance is an important investment which Americans should consider, everybody must weigh his resources first before putting his money in this product. Now, if an individual seriously wants to get his hands on a policy despite having to adjust his current lifestyle a bit to be able to afford it, then he can ask an expert to help him estimate his long term care insurance benefits.
Some people wind up using all of their assets on the premium of their long term care insurance (LTCI) coverage because they chose to throw into their policy all of the ideal components for this product which range from a high maximum benefit amount, long benefit period, short elimination or waiting period, and a 5% annual compound inflation protection rider.
According to experts on the field, the reason some people end up doing the above is lack of research and analysis.
It may be ideal to purchase an LTCI policy with a maximum benefit amount that will cover five years of care but the question is, can you afford the price of such policy? If not, don’t be compelled to fork out money for such a plan because you have other alternatives. After all, nobody said an LTCI policy should wipe out your financial resources because if that is going to happen then how can you afford to pay out-of-pocket later on?
Now don’t let the last sentence of the paragraph before this confuse you. It’s true that LTCI is designed to cover one’s long term care (LTC) expenses in a nursing home, community-based LTC facility, or those which he would incur from acquiring home-care. However, before a policyholder’s LTCI benefits start shouldering his LTC expenses he has to satisfy the elimination period of his policy first. With a zero nest egg how can he possibly accomplish this?
It is important to remember that preserving your assets is just as important as investing in an LTCI policy. Hopefully, this will keep you from having the idea that your policy will cover even your living expenses.
Estimating Your Long Term Care Insurance Benefits
As mentioned earlier, miscalculation of a policy’s maximum benefit amount can result in a high annual premium, so see to it that you know exactly what you will possibly need in the future.
For example, if your family does not have a nursing home record and you do not have a genetic predisposition to a chronic illness, perhaps you can put less priority on a nursing home. If your late grandparents, uncles and aunts had only received in-home care then you’ll probably need the same thing in the future.
However, before deciding on the level of care that you will most likely need 40 years from now make it a point to see your doctor first. For all you know, your unhealthy lifestyle in the past five years could’ve taken its toll on you already.
Determining the amount of your long term care insurance benefits entails careful study and research. To understand this better, contact an LTCI agent in your area with an excellent track record.
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