5 Questions to Ask Before Buying Long Term Care Insurance

Aging and getting old is a fact of life. No one is exempted from it. As you age, your body and health deteriorates and time will come that you will need assistance in your day-to-day routine and activities. If you want to ensure that you’re taken care of during this phase, buying long term care insurance can be your best move. If you’re considering purchasing this policy, here are five questions that you should ask:

Why do I need long term care insurance?

Nobody knows what the future holds, therefore you may question if there’s actually a need for long term care insurance. However, experts say that about 70% of individuals aging 65 years old and above will require long term care that can last up to three years. Given that estimation, the likelihood that you’ll need assistance in your retirement years is quite high, thus long term care insurance is necessary.

How can I afford it?

The cost of long term care premiums depends on its range of coverage, how much does it pay in a day, and how long is your payoff period. If you have a steady income, may it be from your employment or retirement, and assets amounting to more than $200,000, purchasing long term care insurance is highly feasible for you. Furthermore, if you don’t have a hard time keeping up with your payables and if you are disciplined when it comes to managing your money, you will have no problem affording this insurance policy.

When is the best time to purchase long term care insurance?

You can start shopping around for long term care insurance products as soon as you have the financial capacity to purchase this policy. The younger you are, the better. Reason for this is that long term care insurance costs less for those whose health are in great shape. When you are young, your health is at its prime and pre-existing conditions will not get in the way of your eligibility. Furthermore, even if long term care rates are on the rise, its price may still be in your favor if you buy early even with inflation accounted for. Given all these, buying long term care insurance is most ideal for people who are in their 50s up to early 60s.

How much coverage should I sign up for?

According to The Society of Actuaries, most men, after being disabled, will need long term assistance for 18 months. Meanwhile, as for the women, the care needed can last up to three years. Add to that possibility of having to be in a nursing home. Today, the cost of staying in a nursing home varies from $40,000 to $100,000 annually, however, these figures will most likely grow four times in about 20-30 years. Given these statistics and possibilities, the range of coverage you need depends on how much risk you are willing to take. If you want every aspect of long term care covered, then go for the most comprehensive policy there is. On the other hand, if you don’t want to spend on high premiums, consider if your financial capacity can handle the costs, should you want to self-insure in some areas.

Where should I buy long term care insurance?

You can buy long term care insurance directly from an insurance company or with the aid of an insurance agent. When buying this insurance policy, whether from the company or through an agent, make sure that you are purchasing from a reputable provider. Check their track records, financial capability, claims payment history, stability and if they are certified in the area of long term care insurance. Don’t forget to do your homework. Furthermore, take time to shop around for rates and coverage. Be keen on asking questions and make sure that you understand every word written in that policy.

Buying long term care insurance is an effective way to plan for your retirement and to be prepared for any possibility as you age. However, buying one comes with a high cost, therefore, before you invest your hard-earned money on this policy, make sure that you have answered soundly the five questions mentioned above.