Long-Term Care Insurance, A Growing Need

With long-term care (LTC) costs growing exponentially, the need for long-term care insurance is growing as well. Advances in bio-science have lead to longer life expectancy, and, with older age comes the need for assistance.  As baby boomers continue to reach retirement, the need, and ultimately the cost, of long term care will continue to grow.  So what can you do to protect yourself from the costs associated with long-term care? 

Long-term care insurance can help you reduce the potential exposure related to long-term care costs.  When buying long-term care insurance, there are a few things you should consider.

·Daily/Monthly Benefit Amount –This is the amount, per day, or per month, the policy is scheduled to pay out. If your daily benefit amount is $200 per day, your policy will pay up to $6,200 per month. If your monthly benefit amount is $6,200, you will also receive up to $6,200 per month.

·Elimination Period – This is the period of time you must wait before your benefits begin to pay.  This period typically ranges from 0 – 180 days.  The longer the waiting period the lower the cost of the policy. (This is similar to the deductible on a PPO plan)

·Benefit Period – This is used to determine the total benefit amount.

These are a few of the key factors you should understand when purchasing LTC insurance. When purchasing LTC insurance for yourself or your parents, be sure to read the policy carefully.  It is important to understand how much coverage you have and under what circumstances you will receive benefit.  For a no-cost review of your LTC policy, give Guide My Finances a call today.