Long-term care insurance is a very important part of ensuring you have a future that does not leave your family struggling to pay your bills at the nursing home. Getting that insurance means you are taking the initiative and thinking ahead, which is an excellent quality in an individual. However, many potential long-term insurance individuals do not always know when they should consider getting long-term care insurance. So, when should you think about making the commitment?
If you know when you are going to need to make a long-term care insurance claim, then do it a month beforehand. Of course, there is really no way of knowing when you will need long-term care claims because you don't know when you will be diagnosed with a disease, suffer an injury or simply need help with day-to-day activities.
In reality, you can get the insurance policy at any time in your life because all it takes is one unexpected accident to change everything about your life and require you to need long-term care insurance. No one thought Christopher Reeve, aka Superman, would need long-term care insurance, but he did and his story is an example of the unexpected nature of life.
Often, people will see long-term care insurance as something for the elderly, but the truth is that 40 percent of those who are receiving long-term care are below the age of 65.
So, to answer the question, you should look at getting into the long-term care insurance program when you can comfortably afford to pay the premium and you have enough income and assets to protect to justify the cost of the policy. As well, if you get the premiums early in life, you will pay a lot less than you will at an older age. That in itself can be an excellent reason to join the program early, rather than later.
Long-term care is not covered by medical health insurance, so you need to make sure you protect your assets in the case of accident, and the best way to do that is through a long-term care insurance plan. Nothing is set in stone and making sure you are covering your bases ensures you will not be left hanging when things take a turn for the worst. Anything can happen.
Conclusion There is often the question of when to spend the money on a long-term care insurance policy, and all to often people will think that long-term care is only for the elderly. However, as has been stated, anyone can suffer the effects of a disability that requires them to need daily care, but with out the coverage, their family ends up paying the bills. As a result, you need to make sure you get the long-term care insurance policy as soon as you are able to afford it and when you have enough to protect. At this point, you will be in the best situation to pay low premiums, yet get the security and peace of mind that comes from being a part of the long-term care insurance program.
You should just ask for help from an insurance representative who specializes in long term care insurance to answer any questions.
Monday, September 8, 2008
When Should I Consider Long Term Care Insurance?
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5 comments:
Agree that you should buy long term care insurance as soon as you are able. However I do believe the best time to buy long-term care insurance may be middle-age. It's the time when you have the highest likelihood of being eligible for a policy and, just as important, when premiums costs might be lower.
Just a tip, it's wise to shop and compare policies. Never pay an agent in cash; write the check directly to the insurance company. When you get your policy, review it right away to be sure it covers what you paid for.
Every state has an insurance commission that oversees insurance practices in its state. If you have questions regarding the way you're being treated, contact the commission.
You also have a "free look" clause that lets you cancel your policy within a certain number of days after you've signed and paid for it. Check with your state insurance commission to find out how many days you would have.
Sam
Fix My Personal Finance
http://fixmypersonalfinance.com/
Great article. It is so important to have a plan in place well before a long-term care event occurs. The problem is...no one knows when that is. Purchasing a policy that will help supplement your savings is wise if it helps keep your premiums lower. It is important when putting your plan in place to consult a Long-Term Care Specialist, one that represents all the top carriers and shows no bias toward any one carrier. Look for someone who has additional education and training in long-term care financing and planning (LTCP, CLTC).
A good educational source is http://www.LongTermCareInsurancePros.com
Medicare Insurance At A Glance
Medicare is a health insurance program established by the U.S. government for citizens 65 years of age or older. Its purpose is to provide an affordable health insurance solution for the elderly population so that they can receive the medical care they need. Here you will find basic information on eligibility requirements and the types of coverage offered, as well as resources to further research your Medicare options.
Eligibility: To qualify for Medicare, you must be 65 years of age or older. The enrollment period for Medicare begins three months before the month of your 65th birthday and ends three months later. For example, if your birthday is June 1st, you are eligible to enroll between March 1st and September 30th of the year of your 65th birthday.
Types of Medicare Coverage: Medicare is split into three parts-Part A, Part B, and Part D.
Medicare Part A covers hospital expenses. For most Americans, this insurance is free since they have already paid for coverage through payroll tax deductions. You or your spouse must have 40 work credits (equal to approximately 10 years in the workforce) to obtain this coverage at no cost. For those individuals who have less than 40 work credits, coverage can be obtained at a premium based on any work credits you may have. It is advisable to enroll in this coverage as soon as you are eligible as it allows you to qualify for Medicare Part D.
Medicare Part B covers doctor and outpatient services. There is a premium associated with this coverage. For 2008, the Medicare Part B premium is set at $96.40 per month for most individuals. It is important to enroll for this coverage as soon as you are eligible because there is a penalty if you enroll after the initial enrollment period. There is an exception but it is better to be safe than sorry.
Medicare Part D covers prescription drug expenses. As with Part B, there is a premium and a penalty for not enrolling during the initial enrollment period. There is an exception to the penalty-if you already have prescription coverage that is considered to be as good as Part D, you will not be penalized for obtaining Part D when that coverage ends after the initial enrollment period.
There are two ways to obtain Medicare. You can join the traditional, government-run Medicare program or you can elect to join a private Medicare insurance plan. There are pros and cons to both programs and it is prudent to research both options to find out which one is right for you.
For more information on Medicare, use the following resources:
AARP Medicare Information
Medicare.gov
Center for Medicare & Medicaid Services
Home Health Senior Care
I couldn't see relying on Medicaid, Medicare, etc. for the next 20-30 years. They are so far in debt that they'll eventually fail. I had an agent from Insure Your Future contact me who took me through the options and sent several policies for me to choose from. Now I'm covered with an affordable policy and I don't care about when govt programs fail.
Premiums are age based. Mathematically, the best time to buy LTC insurance is in your 40’s… but not many people do. Most people that age are dealing with mortgages and tuition, and have not focused on retirement plans.
Schneider & Shulman Associates recommend that you consider Long Term Care Planning in your 50’s. You will have a good chance of qualifying for preferred health rates which are discounted as much as 15%.
We have been asked by clients and brokers if it makes sense to wait 5 years to buy. The problem is that you will be at risk for change in health and rate increases for new applicants. Rates do go up for new…(not existing) buyers about every 2-3 years. A change in your health can effect your eligibility. Also, our plans include inflation options. If you wait 5 years you will need to consider a higher benefit. Five years of waiting could require a 25% higher benefit. We can show you in every case that even though you would save 5 years of payments, the net cost of the insurance would increase by 25 to 50%.
Our basic recommendation is to “lock-in” your premiums and your health and take care of this valuable planning as soon as and as inexpensively as possible. Call us for a free consultation and personalized comparison. Most of our clients are pleasantly surprised. Call toll free: 1-877-843-9582.
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