As the U.S. population ages and healthcare costs only continue to rise, so does the demand for the proper coverage to help pay for these services. Fortunately, long-term care insurance can help pay for the cost of medical treatments and facilities that are needed for an extended period. Having long-term care insurance can be essential for financial planning for your future. However, this coverage isn't the right choice for everyone.
An independent insurance agent in your area can help you get set up with the right long-term care insurance. They'll make sure you walk away with all the long-term care coverage you need for your unique circumstances and goals. But first, here's a guide to who should buy long-term care insurance and when.
Key Takeaways - Who Should Buy Long-Term Care Insurance?
- Long-term care insurance is usually purchased by individuals in their 50s and 60s.
- Long-term care insurance is needed by adults and seniors who require healthcare services or facilities for 12 months or longer.
- People who have plenty of assets and savings might not need long-term care insurance.
- Working with an independent insurance agent is strongly recommended, as they can help you compare your long-term care coverage options and tailor a policy to meet your unique needs.
Table of Contents
Q. What Is Long-Term Care Insurance?
Q. Who Needs Long-Term Care Insurance the Most?
Q. When Is the Best Time to Buy Long-Term Care Insurance?
Q. Who Might Not Need Long-Term Care Insurance?
Q. How Much Does Long-Term Care Insurance Cost?
Q. What Are the Benefits of Having Long-Term Care Insurance?
Q. How Can I Choose the Right Long-Term Care Insurance Policy?
Q. How Can an Independent Insurance Agent Help?
What Is Long-Term Care Insurance?
Long-term care (LTC) insurance is a type of policy designed to cover many of the healthcare services that assist aging and ill people with daily activities such as eating, bathing, and dressing. Services might also include supervision for chronic disabilities and illnesses. You can use long-term care insurance to pay for services provided at your home, nursing homes, or adult day care facilities.
To qualify for long-term care insurance, a service or facility must be needed for an extended period of time. Short-term services that are needed for less than 12 months typically are not covered by long-term care insurance. An independent insurance agent can help you review the specifics of your long-term care policy coverage.
Who Needs Long-Term Care Insurance the Most?
Aging adults and chronic illness patients are typically the most in need of long-term care insurance. This coverage is often purchased by adults and seniors receiving in-home care or by those residing in assisted living facilities or nursing homes who don't receive support from family members. Individuals with a family history of genetic health disorders also have a high need for this coverage. High-net-worth individuals who don't qualify for Medicare coverage might also want to consider getting a policy.
The ideal age range to buy LTC insurance is in your mid-50s, though you can buy coverage in your 60s as well. Buying coverage earlier in life can help you save money on your premiums, since they're often determined by your age, health status, and coverage needs.
When Is the Best Time to Buy Long-Term Care Insurance?
It's usually recommended to buy long-term care insurance between the ages of 50 and 65. The earlier you buy coverage, the better it can be in terms of lower premiums, so the best age to buy long-term care insurance is somewhere in your 50s. Policy rates can increase with age and as you develop health issues.
It's also helpful to buy coverage before retirement so you already have a plan to pay for healthcare expenses once you're no longer working. An independent insurance agent can help you find affordable long-term care insurance near you.
Who Might Not Need Long-Term Care Insurance?
Several types of individuals may not want or need long-term care insurance, such as those with minimal assets who can qualify for Medicare or Medicaid. In contrast, people with significant wealth who can self-insure or otherwise cover their own healthcare costs might not be interested in this coverage. If you have plenty of savings and investments set aside already, long-term care insurance might also not make sense for you.
Further, individuals in good health may not be good candidates for long-term care insurance. An independent insurance agent can also help you answer the question, "Do I need long-term care insurance?" and evaluate your long-term care insurance alternatives.
How Much Does Long-Term Care Insurance Cost?
The average cost of long-term care insurance ranges from $70 to $533 per month. However, long-term care insurance costs can vary considerably. Your policy's pricing can depend on a number of factors, such as your age, health, and plan benefit selections. An independent insurance agent can help you find cheap long-term care insurance in your area.
What Are the Benefits of Having Long-Term Care Insurance?
There are several potential benefits of long-term care insurance, such as protecting your assets and retirement savings if you end up needing healthcare for an extended period of time. Another reason to buy long-term care insurance is to reduce the possible burden on your family, in terms of physical effort and finances, should you need long-term assistance. Having long-term care insurance can also allow you access to better-quality care, because you'll be able to afford quality facilities and services you might not have been able to otherwise.
How Can I Choose the Right Long-Term Care Insurance Policy?
Choosing the best long-term care insurance starts by comparing insurance companies in your area and their reputations. Independent insurance agents have access to several of the best long-term care insurance companies, so they're free to shop and compare long-term care policy options and quotes for you. Your agent can also help you find flexible coverage that offers inflation protection to help keep your premiums as level as possible over time.
How Can an Independent Insurance Agent Help?
Independent insurance agents have access to multiple long-term care insurance companies, so they're free to shop and compare policy options and quotes for you to find the best deal. They'll make sure you walk away with a policy that includes all the coverage you need from a reputable carrier. And down the road, your agent can help you file LTC insurance claims and update your coverage when necessary.
Sources
https://www.theseniorlist.com/insurance/long-term-care/cost/
