Long-Term Care Insurance
By purchasing Long-Term Care Insurance, you are protecting your health, your assets, and at the same time purchasing freedom and choice for quality of care.
By purchasing Long-Term Care Insurance, you are protecting your health, your assets, and at the same time purchasing freedom and choice for quality of care.
The idea of needing assistance with basic life issues (ie; taking a shower/bath, dressing for the day, etc.) is a concept that most people never consider when they’re young. Yet, the older we grow, or in the instance of a physical malady, there is an entire industry of service providers, ready to help. Unfortunately, policy-owners are surprised to learn that insurance they’ve purchased for temporary disability and “healthcare”, broadly, are not designed to accommodate Hospice (and similar) care, once individuals have lost the ability to safely live on their own.
According to Baby Boomer Headquarters (BBHQ.com), 2,559,000 Baby Boomers were born in 1940. Every year thereafter, until 1955 saw an increase in the birth rate (except for a slight dip in 1945). For those still with us in 2020, those turning 65 years old through 80 years old, those golden years may require a bit of gold to pay for increasingly expensive long term care.
Are you one of the Boomers? You may save a little money if you know what your needs are (and will be) and you’re ready to leave Illinois, where Genworth, in 2019, estimated the average cost of an assisted living facility at $50,040/yr, and a private room at $82,125. In Mississippi, the numbers go down to $42,291/yr for an assisted living facility, but up to $85,045/yr (on average) for a private room.
J Fish Insurance provides a variety of Long-Term Care Insurance options. By making rational financial decisions now, you can best protect your hard-earned life savings if Alzheimer’s Disease strikes, or you find yourself coping with Cancer or just need assistance with 2 out of 6 Activities of Daily Living (Bathing, Toileting, Clothing, Continence, Eating, Transferring).
Recognizing that more than half of Americans who reach 65 years of age will need to avail themselves of long-term care, means that purchasing this type of insurance is the smart choice. Why saddle your partner with choosing between care for you and basics ranging from food on the table to mortgage and taxes? If you want your children to enjoy an inheritance, rather than passing all your hard-earned money to the healthcare system in your Golden years, consider Long-Term Care Insurance and its ability to help pay for:
Though there is a lot of talk among presidential candidates regarding Medicare for All, the reality is that the government is not designed to sustain the billions – some claim trillions – of dollars that would be needed to support an entire generation with their decades-long health decline. Medicaid, which is intended to assist people with no money (which means you spend through all your savings, first) presumes there will be
enough medical staff who will accept an evergrowing number of patients. Private Long-Term Care Insurance, on the other hand, places you in control of your own future healthcare choices.
According to Genworth Financial, an S&P 400 insurance company, Adult Daycare Services (ie; social activities, mental stimulation, therapeutic physical exercises, personal care assistance, etc.), easily range in annual cost from $18,720, all the way up to $100,375 when these services are provided in the context of a nursing home private room.
The company further states that long-term care costs are trending upward due to:
• Skilled and Specialized care worker shortages
• Increasing minimum wages
• Rules for Overtime pay
• Rising occurrence of Alzheimer’s
With people’s living longer, the question arises, “At what age should I purchase a Long Term Care Policy?”
Even though you can lock in a lower premium rate at age 50 instead of age 60, remember, you’ll be paying
that premium for a full decade more. That’s money that you can’t otherwise invest in stocks, bonds or real
estate. Assuming you live into your 90’s, the actual dollar amount you pay can be less, even if you start at
age 60, paying a higher rate.
If you’re concerned about genetic predisposition to certain illnesses or diseases; or if you’re simply worried about affording healthcare, you may lock into Long Term Care Insurance whenever you feel comfortable purchasing it. Your peace of mind can be worth more than the outlay of funds for premium payments.
It’s possible to combine, in hybrid fashion, Long Term Care coverage with Life Insurance. These policies
enable you to access the payout that your beneficiaries would otherwise have received, upon your death,
for use in paying for your own Long Term care. In the case that you do not need this type of care, your
spouse, children (and any other designated beneficiaries) receive the full amount as payout on the policy.
You often have to pay the entire non-cancellable premium upon purchase of the policy. This is called One Pay. That can mean 10’s of 1,000’s of US dollars. A few companies now often more flexibility with premium options such as paying premiums over 10 or 20 years-but don’t be fooled, you will end up paying more over the long run and lose the leverage afforded when premiums are paid upfront. The premiums are guaranteed to NEVER increase. This is in stark contrast to traditional Long Term Care insurance policies.
