Long Term Care Insurance
When do I need Long Term Care Insurance?
At Treehouse Financial, clients often ask us when the best time is to consider Long Term Care Insurance. The simple answer is, it is best to start thinking about it while you are still healthy. Most people would benefit from considering their their long-term care plans in their mid-fifties to early sixties. Plans can become unaffordable or unattainable with age and declining health, so it may be a good idea to start planning now.
What should I know about Long Term Care Insurance?
Most people don’t realize that more than 2/3 of individuals age 65 and older will need some kind of assistance with their everyday activities. Health insurance, including Medicare, does not cover this type of assistance and care. Today, about half of the people who need Long-term care will spend more than $100,000 on this service in their lifetime- and this figure is likely to only increase.
There are 3 ways to make sure that your Long Term Care needs are taken care of:
#1: Self insure
Self insure means to carry all the costs yourself for Long Term Care. This can exceed six figures, so for many people this is not a plausible option.
#2- Traditional Long Term Care policy
These policies provide exclusively for Long Term Care, which covers individuals in home or in a facility. Premiums can be affordable for individuals who consider this option early enough.
#3- A combination of Long Term Care and Life Insurance
This is the most versatile solution because it provides Long Term Care coverage if it is needed, Life Insurance if Long Term Care is not needed, or a bit of both.
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