Although it may not seem like it now, when you are young and healthy, but there will come a time when you will likely need help taking care of yourself. When that time comes, how will you pay for it?
Purpose of Long-Term Care Insurance
The best and most affordable way to prepare for what could be your largest expense in retirement is by purchasing long-term care insurance in your younger years. With long-term care insurance, you can pay for various forms of care such as assisted living, home health care, and, if needed, nursing home care. That way, when you the time comes that you need care (and you likely will), you will not have to worry about the cost and you can continue to live with dignity.
Contrary to what some people think, Medicare will not come to the rescue if you need long-term care services. While it will help pay for any associated medical expenses that necessitate long-term care, it will not cover the costs of non-medical “custodial care” including help with activities of daily living.
Why You Should Buy Long-Term Care Insurance
- 70% chance you’ll need it. Although it’s not certain that you’ll need long-term care, statistics suggest that there is about a 70% chance those who are 65-years-old now will need it – and women more so than men. Some people might require this care for a few months, while others for several years or longer.
- Protect your savings. With annual costs that can easily exceed $100,000, long-term care costs can quickly deplete your retirement savings, and buying long-term care insurance can protect your retirement income, your assets, and your dignity.
- More Options for Care. With more money available, you have more options and can get better quality care. Relying on Medicaid limits your choices to nursing homes that accept government program payments.
Why Now is The Best Time to Buy Long-Term Care Insurance
Besides ensuring you can afford to receive quality care later in life, buying long-term insurance now has many benefits. Here are some of the reasons why you should consider getting it now instead of waiting:
- Long-term care insurance costs less the younger and healthier you are.
- If you live in a state that may end up requiring owning long-term care insurance to opt out of a long-term care tax, getting long-term care insurance now can allow you to avoid that tax.
- It is an essential part of retirement income planning and, like any retirement planning, the sooner you plan the better off you will be.
Types of Long-Term Care Insurance Policies
There are several types of long-term care insurance policies, and finding one that suits you can be challenging. Generally, these policies are categorized into:
- Traditional long-term care insurance: An insurance policy that specifically and exclusively insures against long-term care costs.
- Permanent life insurance with a rider: A permanent life insurance policy with a long-term care or chronic illness rider allows you to access your death benefit for long-term care insurance needs.
- Annuities: There are annuities that will multiply your account value when accessing it for qualified long-term care expenses.
Get Long-Term Care Insurance with CEG Life
For more information, or if you need help in acquiring long-term care insurance, contact us at CEG Life. We are experts in helping you find the best products to provide financial security for you and your loved ones throughout your life.