Critical Aspects of Long-Term Care Insurance You Should Know

By Steve Elliott | December 4, 2023 | Comments Off on Critical Aspects of Long-Term Care Insurance You Should Know

The cost of living has skyrocketed in the last few years. Although political leaders of either affiliation and persuasion have talked about it as a temporary problem, most Americans are waking up to the reality that this is not going away anytime soon. The cost of living has increased dramatically in just a few years and shows no signs of coming back down now or deep into the future. So too has long-term care insurance cost of a policy increased.

Long-Term Care Insurance Cost Carmel Valley CA - Critical Aspects of Long-Term Care Insurance You Should Know

Long-Term Care Insurance Cost Carmel Valley CA – Critical Aspects of Long-Term Care Insurance You Should Know

That means for people in their 40s, 50s, and 60s, retirement can be complicated. The majority of working Americans may have some money set aside for their future. There are some that only have Social Security benefits they can count on. Some might be working toward a pension. Others may have invested in a 401(k) at work. Still others may privately invest in the stock market, mutual bonds, CDs, or something else.

Whatever the case may be for you, your retirement savings and investments may only cover the cost of living, especially now that those costs have increased and will continue to increase for the foreseeable future. If you or your spouse or other legal dependent required long-term care, how would you pay for that?

Most people assume their health insurance covers it.

That’s simply not the case. Most health insurance policies only cover short-term care, which means a few weeks. Medicaid will only cover one type of long-term care, usually nursing home care, and only after you’ve spent all your savings and assets on it yourself.

But what are some other critical aspects of long-term care insurance you should know about? Let’s look at three more aspects here.

1. What is long-term care insurance and why do you need it?
Long-term care insurance is an insurance that is designed to cover long-term care expenses in the event you or your spouse or other legal dependent require it in the future. Depending on the policy, it may cover three years, two years, one year, or some other schedule.

You need it because if you have retirement savings and investments, that could be obliterated in the event you or your spouse need long-term care in the future.

2. How much does it cost?
That depends on many factors. A single male 55 years of age could pay just about $1,000 each year for long-term care insurance. However, a couple the same age who decide on a plan that has benefits that grow at a 5% annual rate could expect to pay more than $8,000 annually.

For a $165,000 policy, based on 2022 rates, people 55 years of age could expect to pay:

  • $1,000 for a single adult male
  • $1,500 for a single adult female
  • $2,100 for a married couple

Several factors will influence the cost of these policies, including age and health, gender, marital status, the benefit amount you want, how long you want the benefit to cover, and numerous other factors.

3. When is the best time to buy long-term care insurance?
It’s never too early, but it could be too late. 55 is the age that is considered the “sweet spot.” If you wait too long, you could be denied coverage due to age, health history, family history of health issues, or current health challenges, and more.

You can start earlier, which locks in a better rate, but you’ll want to consider when the policy will terminate in the future.

The best piece of advice is to not wait to start a long-term care insurance policy, especially if you are already in your 50s and fast approaching 60.

If you or a loved one are considering Long-Term Care Insurance Cost in Carmel Valley CA, please get in touch with Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.

Steve Elliott
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