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Long Term Care Insurance – The Ups and Downs

Regardless of what anyone else might’ve told you, your future isn’t just going to happen by itself. Everything about your circumstances in the coming years will be a result of planning, preparation, and hard work – either by you or someone else. If you’d like to save others the burden of having to make decisions for you, it may be best to start considering your options now.

Long term care insurance is one route to independence and security that brings many people to retirement free of worries over out-of-pocket payments for living assistance. LTC benefits cover the cost of in-home care or stays in authorized facilities like assisted living and hospice. For a manageable monthly premium, holders may ensure they need never fret over unexpected care expenses.

However, LTC insurance certainly isn’t the retiree’s panacea. There are downs to go with the ups. Below are just a few of the pros and cons to consider when deciding to make the move on a long term care insurance plan.

Con: Long term care insurance can be expensive.

Easily the biggest objection most have against purchasing an LTC insurance package is the size of the monthly premium. In this economic climate many simply don’t have the resources to put aside for the ongoing payments. Depending on your age, preexisting conditions, and the terms of the plan desired, you could spend anywhere from $2,000-5,000 a year. That’s no pocket change, certainly, and you’ll want to ensure your coverage will make the investment worth it.

Pro: Out-of-pocket long term care is even more expensive.

However, as hefty a commitment long term care insurance premiums may be, they can be a much more prudent decision than waiting until a $50,000 bill comes along for a year of nursing home care. Even paying for a registered nurse to visit your home can run around $15,000 year, which would put a dent in any modest retirement plan. If you wish to protect your assets from degrading quickly over massive long term care expenses, you may want to consider an LTC insurance package. The monthly premiums could be just as valid an investment as anything in your portfolio.

Con: Long term care insurance gets more expensive as you get older.

It’s true that many plans allow insurance providers the option of increasing the monthly premium as the years go by. The rate change simply allows the company to cover the ever-rising costs of healthcare. Rest assured that companies will still try to keep things competitive, however. They know you’ll always have the option of switching, and most plans won’t allow them to drop you unless you fail to make your payments.

Pro: Long term care insurance can help you ride the wave of Baby Boomers.

The average age in America is increasing by the day. In terms of the population pyramid, things are certainly getting a little top-heavy in the US. As Baby Boomers begin to make healthcare claims with increasing frequency, the costs of long term care are only going to go up. Indeed, if there are industries that are sure to come under increasing demand, it’s those that service the health needs of aging Boomers. If after retirement you intend to compete for healthcare by handling costs out-of-pocket, then you’re sure to put out far more than people are today. Despite rising premiums, long term care insurance is as decent a hedge as any against the weight Baby Boomers will place on the healthcare industry.

Con: Some long term care insurance plans have extended elimination or deductible periods.

Depending on which provider and which package you choose, your plan may include a substantial waiting period before your expenses begin to qualify. If you pay a particularly low premium, your deductible period could be around 150 days, which would mean you’d have to wait until day 151 before your provider began covering the cost of care. It’s impossible to overstate the need for research and planning, here. Discuss the terms of your plan extensively with your provider and consider having a friend or loved one look over it with you. You need to know what you’re paying for, if only to avoid having to wait an excruciatingly long time before receiving the support you need.

Pro: Long term care insurance provides independence.

What many people fear most as they age is the possibility of losing the security and independence they’ve worked so long to have. The primary benefit of an LTC insurance plan is freedom – freedom from unexpected costs, freedom from burdening your loved ones, and freedom from depleting the assets you had hoped would keep you comfortable past your retirement. Long term care insurance plans often work best with in-home care providers such as nurses and home health specialists, and the included benefits can keep you from having to consider a nursing home or other specialized facility. Plans may also cover assisted living, if needed, which would still allow for much of the lifestyle to which you have become accustomed.

Conclusion

Whatever you decide, know that the passing years aren’t going to go by any slower. If you haven’t weighed your options by the time you’ve come close to retirement, you may risk placing an unnecessary burden on the people you love. Planning is everything, and if you’d like to maintain your security and independence while living the life you enjoy, think seriously about long term care insurance options which will protect you from long term expenses.

Signs You Need to Consider Long Term Care Insurance