When Should I Consider Long Term Care Insurance?
Long term care (LTC) is a widely discussed topic as the cost of care is expected to go higher in the years to come and thus it’s making people more worried of facing the future. It is clear that everyone should plan his LTC while he still can, preferably with private insurance. But, who should buy long term care insurance (LTCI)?
According to LTC specialists, the best defense against the high cost of care is a comprehensive LTCI policy as this kind of insurance product will allow people to receive care in their preferred LTC setting at a minimal cost. However, as reports on LTCI premium hike loom majority of the population are hesitant to invest their hard earned money on an LTCI policy. In fact, they can’t help but wonder if the makers of LTCI only had the rich in mind.
It is actually the contrary as insurance companies have absolutely no reason to provide coverage to the rich who can obviously afford to pay for their LTC needs. Even if the cost of care doubles 10 years from now or triples 15 years down the road the rich have billions to shed off. LTCI carriers pattern the policies that they sell after the health care needs and budget of middle-class Americans and this is quite noticeable if you try to keep abreast of LTC news.
Financial advisers don’t cease to call out on average families to start working on their LTC plans in order to avoid falling into the financial hole.
Who Should Buy Long Term Care Insurance?
Anyone who has a small business or maintains a regular job which pays well or at least provides a salary that is not below the poverty line should look into an LTCI policy. If your annual income is $75,000 or more you are no doubt capable of acquiring an LTCI policy.
Now before you entertain negative thoughts such as a possible premium hike, why don’t you compute first the amount of benefits that you will require from a potential policy as this will determine the premium of your coverage.
You have to note that LTCI carriers are not allowed to increase the premium rates of their existing policyholders whenever they want. They have to get approval from the state bureau of insurance first. Now if you own a policy already and your annual premium rate goes up by 10%, this should not affect you especially if you bought your coverage at the age of 50 or younger. That said, it is important to study your LTCI options while you are young, healthy and working.
For example, a 50-year-old’s pays his insurer $1,020 every year for the premium of his coverage. Should the price of his policy increase by 10% five years from now, then his annual premium would be adjusted to $1,122. What is this amount compared to $43,472 which is currently the annual cost for in-home care?
By putting off your LTCI policy you risk losing everything that you own to the high cost of care. So, take a break from asking who should buy long term care insurance so that you can take action and secure a plan for your personal LTC needs.
Find out long term care insurance costs in your state when you visit our website now and we can even throw in free long term care quote.
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