When Is Long Term Care
Insurance Not Needed?
You would think that the most difficult question to get an insurance agent to answer is “When is long term care insurance not needed?” Surprisingly, most companies are very up front about who needs long term care insurance and who does not.
Unlike life insurance, car insurance and home insurance, not everyone needs long term care insurance. In fact, there are many people who should not even consider it at all.
There are many factors to take into consideration when making a decision about long term care insurance, but the most important determining factor is money – if you have it and if you want to keep it!
Independent Wealth
Are you comfortably wealthy? If you have an income that would pay you enough to easily cover monthly costs of long term care, instead of dipping into your assets, then you may not need to take out long term care insurance.
However, remember your income must be from a source that does not require you to work because if you are in long term care the chances are very low that you will be able to do any type of work.
Another thing to make sure you are clear on is that the monthly income you would need is in the $6000 per month or more range depending on inflation. This is not typical of most people.
Medicaid-Qualified
If you currently qualify for Medicaid or Supplemental Security Income (SSI), then you do not need long term care insurance. Medicaid is a state-provided plan that pays for the long term care costs for people who are deemed low-income.
Therefore, in all likelihood, if you are Medicaid-eligible now, you probably would not be even able to afford the premiums for long term care insurance. If the cost of the monthly premiums would be difficult for you to meet, then you simply do not need long term care insurance.
It would also be ineffective, as generally the main reason to buy long term care insurance is to protect your assets and qualifying for either of these programs indicates that the value of your assets would not justify such insurance.
Comfortable With Government Assistance
Even if you are not Medicaid-eligible now but do not mind using it to help finance your long term care, it will kick in to help with your such care costs if you do not have long term care insurance.
Once you’ve used all your own financial assets and have a net worth of $1500 or less remaining, Medicaid will pay the difference between your monthly income and the remainder of the monthly cost for your long term care.
If you are comfortable with using up your assets in such a manner and then relying on government subsidization to help finance your care, then you do not need long term care insurance.
Family Care
Another group of people who do not need long term care insurance are those with an extraordinarily strong family support meaning someone who would take care of them and assist in their activities of daily living should they need it. This is not the average type of family support. You would need to feel comfortable with another person in your family taking care of you and with them having to sacrifice time with others, possibly a portion of their home, maybe even a job.
Many families are not equipped to deal with such a commitment, which could easily last several years. Now that we have answered the burning question of when is long term care insurance not needed and you have determined that you do need it, the rest of your search can begin.
Begin Your Search For Long Term
Care Insurance Today!
One of the best ways to begin your search for long term care insurance is to compare multiple quotes side by side.
Our free long term care insurance quote tool makes this process quick and easy.
Find the long term care insurance policy that is right for you today!
