Should You Buy a Long-Term Care Insurance Policy?

A friend of mine recently told me that their financial adviser recommended they buy a long-term care insurance policy to cover the cost of nursing home care in case they need it as they grow older. This seemed like good advice, until they realized that the premiums were - expensive.
 
This is always a difficult topic, and to be honest, everyone has a different point of view. Statistically, after age 65, most of us may need caregiving services at some point. No one really wants to think about this, and we all say, “it will never happen to me.”

What we don’t consider, is that it absolutely could happen to you, and someone will need to pick up the bill.
 
Currently, the cost of caregiving can run as low as $2,500 to more than $10,000 per month. For at home care, it’s approximately $30 per hour. These costs get higher every day. So, if you’re 55 now, just imagine what they will be when you’re 75.
 
Unfortunately, there are only three ways to pay for long term care:

• Pay out of pocket, which means you need a lot of liquid cash.
• Be poor enough to qualify for Medicaid/COPES.
• Or pay using a long-term care/life insurance hybrid product.

 
Which is why many financial advisers will recommend that a long-term care insurance policy should be part of your retirement plan. The good news is that you can still find an affordable policy up to 65, but after that it starts to get expensive.
 
There are some other options to consider, and depending on your situation, you may be able to find less expensive alternatives. The key is to start planning as early as possible, so that you can be prepared. Where we see the greatest costs are when someone has no plan in place, and unexpected situations arise.
 
Come to one of our FREE workshops to learn more about long-term care options, and much more.  You can register HERE.  Or call to schedule a FREE consultation.