The Long-Term Care Insurance Decision

As the costs of medical care continue to rise, many people wonder whether they should purchase long-term care insurance. While life insurance policies deal with a person’s eventual death, long-term care insurance deals with the possibility that a person becomes so ill that they require some sort of constant care. A recent article discusses whether you need long-term care insurance.

Approximately 70 percent of those now turning 65 can expect to require some sort of long-term care in their lifetime. This long-term care can be provided in a variety of ways, such as an in-home care provider, or a stay in an assisted living or nursing home. Unfortunately, many of the people approaching their senior years do not have a plan in place detailing how they will pay for this care.

One possible solution is purchasing a long-term care insurance policy. Long-term care insurance will provide for products and services that are not included in Medicare, such as daily assistance in the home and adult day care. Although Medicaid may cover some long-term care costs, Medicaid does not kick in until a person’s assets are completely depleted.

If you believe you will need long-term care insurance, the best time to purchase it is in your 40s or 50s. Rates will increase dramatically beyond that. Additionally, the younger you are when you purchase, the higher payout you will enjoy when you are older. Finally, remember that long-term care coverage can be denied, outright, should you have a pre-existing condition.

For assistance incorporating insurance into your estate plan, contact us at (626) 696-3145.

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