Long-term care insurance may very well be a lifesaver for numerous families, but if you are struggling with debt right now, it’s may not the best option for you and your family. Keep in mind that even though the vast majority of Americans are deeply in debt, some also carry different types of insurance policies, including life insurance.
There is a difference, though, between life insurance and a long-term care insurance policy. For example, a life insurance policy is designed to help provide financial support to a family after a parent or other member of the family passes away. The majority of life insurance policies are not million-dollar policies, but rather $40,000, $20,000, or even $100,000. In many cases, the majority of policies will cover basic funeral expenses and a few months of living expenses after a potential primary financial provider is no longer there for the family.
A long-term care insurance policy is designed to provide financial support for families in the event long-term care services are required. With the cost of long-term care continuing to increase, even outpacing inflation, there is the potential for these expenses to completely wipe out retirement savings or force families to sell their primary residence just to cover them.
When struggling with debt, it isn’t advisable to carry this type of policy.
While a life insurance policy is likely far more affordable for somebody in their 40’s or early 50’s than other types of insurance, the premium is likely nominal and isn’t going to directly impact debt.
However, the priority for families should be to eliminate debt before picking up other monthly expenses, which might include long-term care insurance. For example, a couple in their mid-50’s may be carrying $50,000 in total debt, including credit card debt. If they are basically struggling to cover the minimum monthly payments, it might not make sense to pay $100 or $150 a month in premiums for a long-term care insurance policy, just yet.
Their focus should be on finding a way to eliminate that debt so when they do reach retirement they can live more comfortably and less stressed. If they are able to eliminate their total debt by the time they’re 60 years of age, then it would be a great time to look into a long-term care insurance policy.
There is simply no reason to dig deeper into debt when you are in your 40’s or early 50’s just to pick up a long-term care insurance policy. In time, though, it will be an important consideration to make.
If you or a loved-one are considering Long-Term Care Insurance Premiums in Encinitas CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
I work with all the major insurance companies and my objective is to help my clients determine if long term care protection makes sense for them and if so, to help them shop the market to find the best company at the best rate
I specialize in Traditional Long Term Care Insurance as well as Hybrid Long Term Care Plans which are either a combination of Life Insurance and Long Term Care or an Annuity Plan with Long Term Care
I’ve been specializing exclusively in Long-Term Care Insurance Planning for over 21 years.
Steve was recognized as a 2003 Long Term Care Expert of the Year at The National Long Term Care Producers Summit
2006 was awarded Senior Market Advisor of the Year Finalist by Senior Market Advisor Magazine
National Speaker for Numerous Industry Meetings
Awarded Nations Top 10 Agent 8 times by the American Association of Long Term Care Insurance
Author of numerous published articles on long term care planning