Identifying Your Need for Care and Financial Backup
Before buying a long term care insurance policy, consumers are advised to study this product’s different components such as the long term care insurance benefit period, maximum benefit amount, elimination period, and rate of inflation protection.
Your policy’s maximum benefit period is the length of time that you will be receiving benefits from your coverage. From the 80s to the early 90s, most people would go for a five-year benefit period but nowadays most LTCI buyers would settle for a three-year period as their long term care insurance (LTCI) advisers tell them that most elderly folks require three years of care on average.
A shorter benefit period will allow an insured individual to save a chunk on his premium. For instance, if he is 55 years old and he buys a comprehensive policy with a maximum benefit period of three years he can possibly pay only a little over $1,000. If he will opt for a five-year benefit period he could wind up paying more than $2,000 a year.
Although choosing an LTCI policy with a short benefit period seems ideal, in terms of one’s annual premium, it is not always advisable. When shopping for a policy don’t just fix your eyes on the premium of your coverage. See to it that you secure an LTCI policy which is appropriate for your future heath care needs and you can only be certain about this if you visit your doctor prior to negotiating for a policy. As a matter of fact, intelligent planners don’t just take their doctor’s word for it, they proceed to a geriatrician to find out more about their health.
Geriatricians specialize in health disorders among elderly folks. If your family has a history in Alzheimer’s and your family doctor says you do not manifest symptoms of the illness, be glad about it. At the same time, see a geriatrician to find out how you must deal with Alzheimer’s in the event that you develop the disease. The information that this specialist will impart to you will come in very handy as you start working on your LTCI coverage.
When Your Long Term Care Insurance Benefit Period is Too Short
It’s not unusual to hear stories of individuals who regret buying a policy with a benefit period that is shorter than five years because it left them paying more than their nest egg is capable of.
Most of them bought their policies at a very young age and when their health was still in tiptop condition. As they got older, though, they began to develop health issues that required intensive nursing home care which demanded a lot of money. According to them, had they known that such predicament would befall them they could’ve invested into a policy with a longer benefit period.
Long term care planning is actually not just about choosing a long term care insurance benefit period that is long enough to keep you from turning to others for financial assistance. You still have to save up and strengthen your nest egg because you can never be 100% certain about what the future holds. With well-managed finances alongside an LTCI policy you can look forward to a great life after retirement.
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