Thanks to Lisa Fu for the opportunity to be a resource for her article “3 Things to Know About Long Term Care Insurance” on Magnifymoney.com. Lisa takes a look at the basics of long term care insurance and the age at which a person should consider purchasing a long term care insurance policy. Long Term Care insurance is an important part of a financial plan as it is estimated that 70% of Americans will have a health issue that requires some type of Long Term Care services – home care, facility care, adult day care and so on. These are services that are not covered by Medicare. The average daily cost can be hundreds of dollars depending on your location and the type of service. To find out the cost in your area, visit the Genworth cost of care survey.
The complete article “3 Things to Know About Long-Term Care Insurance” can be read by clicking on the article name. Article excepts including my comments follow below:
Once in retirement, the average American is expected to spend as much as $250,000 on medical expenses.
Like any insurance, the trade-off with long-term care insurance is the leverage provided. If you can’t afford the premium and it doesn’t provide good leverage, investing in long-term care insurance might be unwise.
Steuer advises those who expect a need to purchase a long-term care policy after the age of 40. But purchasing long-term care insurance in your 40s also could save you hundreds of dollars in premium costs, compared to doing so in your 50s.
Depending on the health issue, you may not be able to meet the requirements to file a claim. To use the benefit, you have to be unable to perform two of six activities, such as bathing or feeding yourself. Your health may not be poor enough to use it as a result. “It is likely that a claim won’t be made until someone reaches their 70s.
You may not be able to afford it right now. If you have student loans and other expenses that have placed you in debt, paying for a long-term care insurance premium simply may not be possible. Steuer advises those who expect a need to purchase a long-term care policy after the age of 40 and if you have assets between $1 million and $5 million. “Someone who either has less than $1 million or more than $5 million should not consider it,” he says.
Long-term care insurance as an industry is going through some transitions. Prior to purchasing a policy, you should read my take on this: Can Long-Term Care Insurance Survive? The answer is a definitive yes and this article will provide you the knowledge to make a wise choice on this important coverage especially if “You Are in Denial About Long-Term Care Insurance”.
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