How To Know If You Need Long Term Care Insurance

How To Know If You Need Long Term Care Insurance

How to​ Know if​ you​ Need Long Term Care Insurance

There’s some piece of​ advice among financial experts that should be well taken to​ heart: do not over-insure,​ and insure only based on​ your needs. if​ you’re still young,​ for example,​ you’re better off taking out a​ term life insurance policy and investing the​ rest of​ your savings in​ high-yielding financial instruments like the​ stock market.

This brings most of​ us to​ the​ single most important point: when should you​ take out a​ long-term care insurance policy?

Deciding on​ whether you​ need long-term care insurance depends,​ for the​ most part,​ on​ where you​ are in​ your finances. if​ you​ only have low income to​ speak of​ and you​ are already at​ the​ retirement age,​ then you’re better off staying at​ a​ nursing with Medicaid paying the​ cost of​ your stay. Since Medicaid is​ a​ federal and state program that is​ paying for nearly half the​ cost of​ America’s nursing homes.

But if​ you’re a​ reasonably financially well-off person,​ yet you​ don’t want old age getting in​ the​ way of​ your lifestyle,​ then you​ might ant to​ consider taking out a​ long-term care insurance policy. However,​ long term care insurance is​ not something you​ want to​ spend for,​ without considering the​ other items on​ your budget,​ because:

• You pay for high premiums
• Your premiums may increase over the​ years
• You pay for some expenses from out of​ your own pocket
• You lose benefits with a​ lapsed policy and without a​ non-forfeiture protection

There are some uncertainties in​ life that may make you​ think twice about long term care insurance. you​ might just meet your end in​ an​ accident. if​ that doesn’t happen,​ and hopefully it​ never does,​ here some things to​ consider,​ to​ determine if​ you​ really need long-term care insurance.

Your Family’s History

Does your family have a​ history of​ heart diseases,​ diabetes or​ Alzheimer's? Did close relatives fall early because of​ those diseases?

Your Family’s Current Situation

If right now you​ needed help in​ getting dressed or​ in​ bathing,​ would any of​ your immediate relatives be available to​ help you​ out?

Your Own Finances

According to​ the​ United Seniors Health Cooperative,​ a​ non-profit organization based in​ Washington,​ DC,​ people should only consider long term care insurance if​ they have (a) at​ least $75,​000 in​ savings,​ or​ (b) at​ least $35,​000 in​ annual income (in retirement).

The figures indicate that you​ should only think about long-term care insurance if​ you​ enough money that paying for the​ premiums does not affect your current lifestyle. if​ this isn’t the​ case,​ the​ best route to​ take is​ to​ put your money where it​ will earn interest,​ pay for professional healthcare only if​ needed,​ and if​ necessary,​ qualify for Medicaid.

Related Posts:

Powered by Blogger.