Do I Need Long Term Care Insurance?

“For a couple turning 65, there is a 70% chance that one of them will need long-term care.” – Wall Street Journal

“60% of people over 75 need long term care. The average facility stay for older folks is about 3 years.” – Business Week

“Over 50% of all people entering a care situation are penniless within one year.” – Harvard University

Long Term Care  Insurance  is a policy that pays for some or all a senior’s long-term  care costs in exchange for monthly premiums that typically range from $200-$500  / month.  Depending on the policy,  medical services at home, in adult day care, in assisted living and in nursing  home communities can be included.

Should you have long term care  insurance already, then they are probably familiar with how it can help with  the costs of long term care.

If you do not have long term care (LTC) insurance but have an immediate need to pay for long term care, this option probably will not help.   Insurers typically do not accept new, elderly enrollees if they are already receiving or in need of care.  Even seniors not requiring immediate care but in frail health are often rejected.   If a senior is accepted, the insurance can be very expensive.

LTC insurance is attractive because the monthly premiums are known in advance and therefore can be built into a budget.  Plans are very flexible and can be structured to meet variety of needs.

Plans can cover the costs of in-home care, adult day care, assisted living, skilled nursing or all of them.  One may choose a daily or monthly care allowance.  For example, a plan can payout $50 / day if the individual resides at home and $150 / day if they are in a facility.  Alternatively, one may choose coverage areas, like skilled nursing but not assisted living. In some rare cases, a family caregiver can even receive payments for the home care they provide.

In choosing a policy, there are a dizzying  number of decisions, options and fine print legalese which can make selecting  the right insurance a very tricky process.

Maloney and Associates, LLC  can help you choose a policy that will avoid unpleasant “gotchas”  when it is actually needed.

Contact us for  a FREE CONSULTATION.

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