Why you need Long Term Care Insurance

Today we are going to talk about a very specific issue: Long Term Care Insurance. If your parents are questioning about it...its time to contact your financial advisor and get some ideas!

What is Long-Term Care (LTC): Long-term care is defined as any type of extended personal care services that you may need when you are unable to take care of yourself without some type of assistance. This may include home healthcare, adult day care or a stay in an assisted care facility or nursing home.

Why Buy Long-Term Care Insurance: The longer you live, the greater your chance of needing long-term care. In the past 100 years, average life expectancy in the United States has increased from approximately 47 years to 77 years of age. Statistics show that 43 percent of people 65 and over will stay in a nursing home at some point in their life.
With the rising costs of healthcare, you may want to consider protecting your assets from the catastrophic expense of long-term care. The average annual rate for a private room in a nursing home today is $66,000, and the average nursing home stay is 2.4 years for a total cost of about $159,000. Would you or your family members have the ability to pay a bill of that magnitude?

When Buy Long Term Care Insurance: Buy sooner rather than later. The younger and healthier you are when you get a policy, the cheaper your premiums will be.

Where should I get LTC: You're buying this protection for the long term, so make sure you hook up with a company that's going to be there a long time. Find a broker who represents several companies and can compare prices and features. Make sure you have a broker that can treat you in a personal basis. My sugestion is MintcoFinancial.com (Talk to Mike or Shawn, they are specialists in LTC, and will take care of it for you).

Don't skimp on coverage. Most people who have long-term-care coverage wish they had bought more. Consider at least a three-year benefit period, which would cover the average nursing home stay.If you're married, consider buying policies for both spouses from the same company. You'll probably get a discount, just as you do for buying homeowners and car insurance from the same carrier.

Are women more likely to need LTC: YES! Women live longer than men about 8 years.Women also have chronic diseases that hamper mobility such as osteoporosis and arthritis.

Why do I still need Long-Term Care Insurance if I have enough assets to pay for my own care: The question is " how much of your asset base is liquid?"Otherwise, you may have to sell investments or property at less than are worth when long-term care is needed.The stress of having to locate and provide for a loved one affects the entire family,regardless of wealth. LTC Insurance can provide peace of mind and helpful direction when care is needed.