The Facts Are Clear
Anyone who has had even a passing experience with Alzheimer's, stroke, Parkinson's or elder frailty can appreciate the severity and financial devastation of these all-too-common life events and the inevitable care required. This is why we want protection.
The average Ancient Greek lived until age 18. The median life span of a Puritan was 33. The average American life expectancy is now about 75 years for men, 84 for women. Over half of Americans will spend part of these extended years in long term care situations.
In 1994, 7.3 million Americans needed long term care (LTC) services at an average cost of nearly $43,800 per year. By 2000, this number rose to 9 million Americans at nearly $55,750 per year. It's currently near $75,000 per year. By 2030 those needing LTC will skyrocket to 23+ million Americans, with projected, individual long term care costs reaching $300,000 annually per individual!
Will you have that kind of money?
Will You need Long Term Care?
It's hard to believe, but the estimated risk for needing Long Term Care continues to climb with each passing year. Now, the Federal Government estimates that individuals have a 70% chance of needing Long Term Care in their lifetime. Recent studies reveal that if you are 60 years old you have more than a 60% chance of needing long-term care.
If you are over 65 years old, your chances of needing care goes up to 70%. The value of Long Term Care insurance is that it:
1) Supports independence by providing the ability to pay for Home Care and Assisted Living costs. It gives people choices.
2) Protects loved ones from the burdens of care giving.
Long Term Care insurance should be called "nursing home and family care giving prevention insurance", and for these benefits alone it is worth its price.
When Should I Buy Long Term Care Insurance?
The sooner the better! LTC insurance premiums go up in price, as you get older, although once you buy a policy your premiums do not rise due to aging or health. For years, financial planners were telling their clients to wait until age 65, but this is no longer considered sound advice.
The Federal and State Partnership Programs encourage people to buy as early as age 40, mostly to increase the financial security of the programs, but also to ensure that people do not become a burden on Welfare/Medicaid if they get sick or injured at an early age and need long term care. If you can afford the premium for years to come, buy now to protect yourself and your family.
Long Term Care Insurance - 101
Long Term Care is needed when a person cannot perform essential Activities of Daily Living.
- Bathing
- Dressing
- Eating
- Toileting
- Incontinence
- Transferring - help moving from a bed, chair or vehicle
How Much Will You Need?
1. Maximum Daily Benefit can be from $50 - $400
How will your Long Term Care insurance policy to pay out per day? This can also be paid in weekly amounts.
2. Benefit Period choices:
Can be 2, 3, 4, 5 or Unlimited years. How long will your policy pay for your Long Term Care?
3. Elimination Period:
Can be for 0, 20, 30, 60, 90 or 100+ days. How long can you afford to wait before your LTCi policy starts to pay? Longer elimination period = lower premium, but if you choose a longer elimination period, make sure you have the savings or assets to cover that period of care.
4. Inflation Protection:
5% Annually Compounded or 5% Simple inflation increases the dollar value of your benefit each policy year. 5% Compounded is recommended for people under 70 years of age in order to keep up with the 6% inflation that is currently being experienced in the health care sector. Many individuals age 70-80 choose 5% Simple and most people over 80 choose not to pay for an Inflation Rider, as it might not be needed. Inflation Riders increase the premium price considerably for regular LTCi policies, but considering the rate of inflation, not buying one at a younger age is risky.
Contact us today at 1-888-808-1800 or ask Bill! |
