Tips for Buying Long Term Care Insurance

As we age, we start to think about our future and what it will look like. How much do we want to have saved for retirement? Where do we plan to live and will we have family around for support? On top of that is the financial stress of making sure you can afford everything once you retire.

The price for living seems to go up year by year, making it difficult for some to cover all the costs. Throw in a serious illness or disability in which you can no longer care for yourself, and the costs are even higher.

Luckily there is long term care insurance that can help cover some of those costs. This type of insurance provides coverage for someone who needs services like assisted living, nursing homes or in-home care.

How do you know if you will need this type of insurance? Well, as for other forms of protection, like health and life insurance, you never really know if you will use it. However, if the time comes you do need it, you will be glad you have coverage.

If you have a retirement plan in place, or just starting one, it is a good idea to include long term care insurance. So here are a few tips for buying long term care insurance.

Consider the Company

You will be buying insurance from an insurance company, so make sure you are going to a reliable and reputable one. There are many long term care insurance companies to choose from, so don’t feel like you need to buy from the first company you see.

Consider the company ratings as this will tell you lots about the company’s performance and stability. Usually the higher the rating, the better the company, but that doesn’t mean they have the right policy for you. Shop around until you find a reliable company that can offer a flexible insurance plan that suits your needs.

Consider the Purpose of the Coverage

As with many insurance policies, you want to consider ahead of time the purpose of buying coverage. With long term care insurance, will you need the coverage for medical bills due to pre-existing medical conditions? Look at any possible hereditary conditions in which you have a chance of developing.

You also want to consider where you will be living. Do you have family close by that you can remain at home? Or will a nursing home be more suitable to provide any care you need? These are all factors that should be considered when you purchase long term care insurance.

Don’t Wait

If you are serious about getting a long term care insurance policy, don’t wait until you need it. Instead, the earlier you buy it, the more likely you will be accepted. Many companies have medical exams that include blood work and family health history checks. This can make buying insurance harder when you are older and more likely to have health issues.

So consider adding long term care insurance into your retirement plan.  Having your long term life planned out now will save you any headaches down the road in case the unexpected occurs.

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2 thoughts on “Tips for Buying Long Term Care Insurance

  1. Hey Money Beagle! LTC insurance is really important in my opinion. There are a lot of different ways to structure it, from creating a pot of money both you and your spouse can access, to linking it to life insurance. Also, deciding whether to use indemnity coverage can be a big decision as well. Even if an individual doesn’t have the means to buy high daily coverage, the ability to receive just $30-$50 daily can be huge. It may save you thousands of dollars in retirement and allow you to still distribute your assets to your family via not spending them on care. Glad you are spreading the word!
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  2. Having long term care insurance today is imperative since more people will require long term care services and also because of the rising cost of long term care. It’s actually best to have coverage than to pay for long term care out of the pocket.

    I agree with all the tips you shared when buying long term care insurance particularly about not waiting before it’s too late to buy a policy. There is a big chance that you might not get qualified for coverage because of old age and because you will most likely have health issues, which insurance companies don’t want.

    In addition to these tips, it’s also important to examine some factors that are unique to your situations such as identifying your assets, annual income, how can retirement affect your ability to pay for premiums, knowing the cost of the policy and others.

    Consulting a long term care insurance agent is also a good option so you can get professional advice, which can help you maximize your policy.

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