Reasons You Need Long-Term Care Coverage

May 24, 2013

Long-Term Care is hardly on the average person’s mind until it comes time to use it. Today, up to70% of people 65 and older will need Long-Term Care at some point, and if they are not insured for it, they will be required to pay out of pocket. Long-Term Care costs continue to skyrocket, driving up the need to purchase Long-Term Care insurance.

Without insurance, Long-Term Care recipients would need to possess assets that generate $100,000 to $150,000 in additional funds specifically set aside for Long-Term Care. A vast majority of people do not have these kinds of assets or funds available, deflecting the costs of Long-Term Care to family members, if available. Given the structure of Long-Term Care plans, purchasing Long-Term Care insurance at an early date can provide a world of benefits.

Applying for Long-Term Care insurance early can increase your odds of getting coverage and can increase the value of your plan. Nearly 57% of those over the age of 80 that apply for Long-Term Care insurance are denied coverage. Only 11% of those between 50 and 59 are denied. Do not wait to purchase insurance until it is too late.

Purchasing Long-Term Care insurance is like getting a lump sum that you can dip into whenever necessary. If you purchased a policy valued at $600,000 and used $30,000 for whatever reason, you would still have $570,000 leftover to use. When 20% of insured’s require more than 5 years of Long-Term Care, insurance is a worthwhile investment. Buyers also have the option of including inflation protection to guard against rising price indices. As policies operate using daily benefit limits, inflation protection increases these benefits as price levels change. In addition, Long-Term Care insurance plans offer the option of either reimbursement or indemnity benefits. Reimbursements benefits cover actual expenses up to a daily limit, whereas indemnity provides a specific daily amount.

Odds are that at some point in your life, you will need Long-Term Care. Why absorb the costs of the care yourself? At Murray & MacDonald, we have available some of the most renowned Life and Long-Term Care insurance companies including John Hancock, Met Life, and Guardian Life; and certified professionals to serve your needs.

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