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FAQs
Is Long-Term Care (LTC) insurance right for me?
LTC insurance is an option that can help you retain independence, flexibility, and a quality standard of living, and help offset the cost of LTC services. However, LTC insurance may not be for everyone. You'll need to factor in many things about your needs and your particular situation to make an informed decision.
Answering the following questions can help you decide whether LTC insurance is right for you.
Can I afford LTC insurance?
If you are considering LTC insurance, recognize that the appropriate LTC insurance plan covers the amount needed—not more, not less. There is no advantage to buying more than you need. And buying less may leave you without adequate protection.
If paying the LTC insurance premium will create a genuine hardship for you or your family, like leaving you unable to adequately cover the cost of necessities (food, mortgage or rent, utility bills), LTC insurance may not be suitable for you at this time.
However, if paying the LTC insurance premium won't create a hardship for you, it may be a good time to purchase this coverage.
If you work, ask your employer if LTC insurance coverage is offered. If so, you may be able to take advantage of affordable group rates and convenient payroll deductions.
Am I being practical?
Can you afford LTC insurance, but want to put off purchasing it because you prefer not to think about it? Weigh that against the very real probability of needing LTC. Remember, LTC insurance doesn't just cover age-related LTC needs; it can also help cover LTC needed as a result of an accidental injury.
How do I choose the right coverage?
- Define your goals. Do you want to retain your options as long as possible, or are you more interested in a plan that will help protect your assets? Or do you want a policy that does both?
- Do your homework. Find out the cost of care in your area. Be sure to consider the impact of inflation. Learn more about LTC insurance.
What if I already have LTC insurance?
If you already have LTC insurance, there may be reason to replace that coverage, especially in the case of older insurance plans that have more limitations (little or no home care, for example). Or you may want to supplement your existing coverage if you have had your insurance plan for a long time and do not wish to lose the benefits you have earned or pay higher premiums due to your age or health.
Note: If you are supplementing coverage, be sure to check if your coverage(s) have a coordination of benefits clause that prevents one carrier from paying anything except what is left after the other carrier has paid.
Not every long-term care planholder needs to change coverage. You many have the right amount right now. Replacing or adding an LTC insurance plan should not be considered lightly.
When should I buy LTC insurance?
If you decide LTC insurance is the best option for you, it is best to purchase coverage now for two reasons:
- Your health. You may not be able to purchase LTC insurance when you need it the most. It's not always available without providing evidence of good health. Remember that LTC may be needed at a younger age due to an unexpected illness or accidental injury. Just as you buy fire or car insurance before the need arises, you should buy LTC coverage before the need arises.
- Your premium costs. LTC insurance premiums are age-sensitive, so buying at an earlier age generally allows for a lower annual premium and ensures a lower total premium. In most cases, the older you are, the higher the premium is.
Learn more about LTC insurance. Or contact us directly. |
