Long Term Care Insurance

With the country deep in a nasty recession, it should come as no surprise that new statistics show roughly 64% of those soon to retire won’t have enough money saved to maintain their lifestyles.

When you retire, you have expectations of being able to do pretty much what you want to do. But what if you don’t have enough money to do that? What if your standard of living dropped instead, to a level you never imagined was possible?

If you don’t have medical issues, things might be just dandy. However, with the advent of better technology, we are living longer. Living longer may well mean some type of long-term care. While this may be a reality, there are a lot of couples that are not prepared financially to pay that kind of expense out of their pockets. This is where long-term care insurance comes into the picture.

While you might get tired of hearing that insurance of any kind is easier to buy when you are younger, that’s the truth; it is easier. Sure you wonder if it’s worth the expense when you are in your 40s or 50s and in pretty good shape. Even if you are in relatively good health, thinking in advance is a smart thing to do for your future and that of your family as well. The other hard core truth is that if you wait too long to buy the kind of insurance that you need, you might not be able to buy it.

Here are a couple of statistics that will get your attention and get you thinking. They’re from the American Association for Long Term Care Insurance who reveals that virtually 70% of all those who apply for long-term care insurance who are 45 to 54 get accepted. Those in the age bracket of 65 to 74 don’t always get accepted, and the approval rate plummets to about 40%. Policy costs also double for those 65 and over; that is double the cost of what it would have been had you applied when you were 55.

It never hurts to think that you will always be healthy and never need long-term care, but to be blunt, that is honestly not a very realistic point of view. Other studies have indeed shown that just about half of us will need some form of long-term care. Sure you might think that long-term care insurance is expensive and you might not need it and besides, you have a higher chance of being hurt in a car crash or your home going up in flames. That well may be true, but you “do” have insurance for both of those events, so why not have insurance for the possibility of long-term care? It only makes sense and protects you later when you need it the most.

The American Stroke Association says that about one-third of stroke victims become permanently disabled and that one-third of stroke victims are under 65 years old. Those under 65 would not have had the chance to finish stashing money in their retirement fund before losing their ability to work. Think about this – the costs of long-term care. On average it runs about $75,000 a year with one in five Americans needing care for at least a year and about 3% requiring care for more than five years. Some patients with dementia will need care for longer. There is no way your family will be able to afford those costs.

On the other hand if you did buy long-term care insurance early and paid $100 a month, that total at the other end when you really needed it would far outweigh any retirement savings or financial reserves you may have at your disposal. Which chance would you rather take? Not having long-term health care and being unable to afford it? Or having long-term health care and knowing your care will not be a problem for you or a burden to your family. These are tough questions and ones that should be discussed with an expert insurance broker. They won’t sugarcoat what you need to know and will tell you precisely what would work for you for the long-term.

Evan Tunis is with FloridaHealthcareInsurance.com, the leading provider of Florida health insurance quotes. To learn more about Florida health insuranceFlorida health insurance quotesFlorida life insurance,Florida life insurance quotesFlorida group health insurance visit Floridahealthcareinsurance.com.

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Saturday, December 5th, 2009 Articles