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Wednesday, October 1, 2014

How can I tell if long term care insurance is for me?

When people start talking about long-term care or long-term care insurance, first thing to mind is the thought of ending up in a nursing home. However, LTC is more comprehensive than just being admitted into a nursing home and LTCi is not a waste of investment.
We have to accept the truth that all of us, at one point of our lives, will need some form of assistance with daily living or assistive care. Most of the assistance commonly takes place during our 70s or 80s.
Before we even come close to retirement, we need to start thinking if we can be financially ready for the rates of long term care services. 
Here are ways you can tell that LTCi is for you:
1. Your total assets make you unqualified for Medicaid.
Medicaid has a specific maximum total asset amount requirement depending on your state. Some people have to spend down their assets to qualify for Medicaid.
2. You don’t have relatives who can take care of you.
Some older adults are fortunate to have relatives that can provide assistance with daily living; however, most of us have family members who have other responsibilities to attend to such as their jobs or their own families. It can also be difficult for those who have no partners or children.
3. You can’t afford care out-of-pocket.
What you can pay for now may become unaffordable by the time you reach late adulthood. LTCi is flexible and is adjusted to suit your budget and future care needs. And with inflation protection, you can be guaranteed that your benefits will be able to meet the cost of your care.
It’s important that we prepare beyond what we are aiming at today. Some of us might plan to go on tour during retirement, but being prepared for your medical or non-medical future needs isn’t a bad idea too.
Some people may say that you may or may not need LTCi, but why take the risk when you can be guaranteed instead? Planning ahead will give you plenty of time to prepare for what really matters.