This article goes along with my post from this morning, Do I Need a Living Will? Many of you have heard of LTC, also known as long term care insurance. But many of you don’t know exactly what LTC is, what it should cost, or how you go about getting it. Well, hopefully, after this article, I can explain some of that for you.
Some quick facts: Today, there are approximately 46 million Americans age 65 or older. 40 years from now, what we consider a working lifetime, that population is expected to more that double to over 98 million according to prb.org.
As you can see, our population is aging, and is aging at a rapid rate. This will leave many of the population needing more home care, more assisted living, more adult daycare, more long term care overall.
Now that we know what LTC is, and that we all are probably going to need it, how do we go about getting it? Well, there are two main types of LTC. The first main type of LTC, is the traditional, use it or lose it type. Think of this kind of like auto insurance. You pay the benefit, but if you don’t use it, it is just lost.
The other type of LTC, is one that is attached to a Whole Life policy. If you don’t remember what that is, look at our Life Insurance Simplified for a quick explanation. This type of LTC is attached as what is called a “rider” to this policy. You invest in this policy and LTC is included with it. IF you don’t use the LTC, then the Whole Life policy then still has value other than the LTC policy.
Now, what should these policies cost? Honestly, this is a loaded question; however, this can be comparative. I cannot quote prices here, as I do not know your health history, gender and age. However, I can speak about apples to apples of some carriers to others. Some carriers will guarantee price over time, but will not guarantee benefits. Some will guarantee benefits, but will not guarantee your premium. Others will guarantee your premium and your benefits over time. It is up to you what you want to spend and what is important to you.
As always, feel free to contact us with any questions you may have. We are here for you!
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