Long-Term Care insurance (LTCi) is insurance coverage designed to protect you if you suffer an illness, injury, or disorder that requires continued assistance from a medical professional. This assistance can be at the patient’s home or at an assisted living facility. Regular health insurance policies do not cover long term medical care. My life insurance policies also do not include LTCi. The only way to hold an insurance policy that covers you from the costs of long-term care is to purchase an insurance policy that explicitly includes it. You may also be able to add LTCi to your current life insurance policy. There are three very important reasons for a person to consider Long-Term Care insurance as soon as possible.
Health And Age Now Versus In Future
You are most certainly healthier now than you will be in 5-20 years. While older folks have valuable experience, the young have…youth. Youth typically comes with better health and thus lower health insurance costs generally. Your money pays for the insurance, but your health actually buys it. The healthier you are the more likely you are to receive Long-Term Care insurance.
You will not qualify for LTCi if you already have a chronic condition that requires medical assistance. It is very hard, almost impossible, to buy Long-Term Care insurance after age 70 and certainly after age 75. 44% of Long-Term Care insurance applicants age 70-79 are declined, compared to just 30% of those age 60-69 and only 22% of those age 50-59 according to the American Association for Long-Term Care Insurance.
More Frequent Doctor Visits Build A Long Medical Record
Individuals gain access to Medicare after age 65. Many begin seeing doctors on a more regular basis as they approach their 70’s. And that is a good thing. Medicare is a wonderful health plan for Americans. The bad thing is that the doctor is starting to enter notes into your medical record about various conditions that arise as you age, and that may make it impossible for you to health-qualify for Long-Term Care insurance.
Costs, Costs, And Costs
As a person ages, a new policy that contains Long-Term Care insurance begins to cost them more. Just like life insurance age pays a major role in determining the amount a person’s LTCi will cost. Younger people will almost always receive a lower premium for both life insurance and LTCi. This is because of the amount of risk these two different groups face when it comes to having to rely on their policies. Because of this, younger people will want to consider LTCi to protect from a tragic event that leaves them needing long-term care.
Long-Term Care insurance is under purchased because people do not want to buy something far in advance. People tend to buy things when they feel the need, or the risk is imminent. Potential purchasers will say “I am just not worried about that yet”. But that is the wrong mindset for someone to have about their future health, which is very likely to decline.
Some Ways To Save You Money On Long-Term Care Insurance
The Insurance Information Institute offers several ways for insurers to save money on their LTCi. Some of these are:
- Check to see if your employer offers LTCi
- Shoot for a LTCi premium that is seven percent or less of your annual income
- See if you can add LTCi onto your current life policy
- Check with several companies to compare prices and options
Making long-term decisions is never easy. It helps to be informed and have a person in your corner to go to for advice. If you have any questions regarding Long-Term Care insurance, the team at Konen Insurance can help. Our independent insurance agents give expert advice to any insurance related inquiries that you may have. Our mission is to help our clients. We can give you reasons to consider Long-Term Care insurance, but we also will help you decipher whether or not this type of policy is right for you at this time.
