Long-Term Care Insurance: Who Needs It?

Posted August 7 2014


Who Needs Long Term Care InsuranceThe phrase Long-Term Care covers a variety of services and support for a person who has become unable to care for him or herself, because of chronic illness, disability, or deteriorating cognitive condition. Not limited to medical care, Long-Term Care also includes assistance with everyday tasks such as bathing, dressing, eating and using the toilet. You probably know someone who has needed long-term care services, whether for themselves, a parent, or an older relative. 

 

Long-Term Care Insurance helps ensure that those who need these services are able to afford them without depleting their financial resources. If you are a relatively healthy person in your 40s or 50s, though, you may be thinking, “Long-Term Care Insurance: Who needs it?”, when you are over 60 life insurance is something you need to thinking about. 

If you have between $50,000 and $1 million in retirement assets, you need the protection of Long-Term Care Insurance. 

As a fiscally responsible individual, you have spent the majority of your adult life preparing for your retirement years, working and saving to ensure you can enjoy them free from financial concerns. You make regular payments into your retirement funds, you have a Disability Income Protection Plan in case an injury or illness prevents you from working, and you have a Life Insurance Plan in place to take care of your loved ones when you are gone. 

Despite all your hard work and planning, if you or your spouse are one of the 7 out of 10 Americans over the age of 65 who will need long-term care, you could lose your financial security to the high cost of long-term care medical bills. If you have between $1 million and $2 million in retirement assets, you count as being self-insured; meaning you have the funds needed to pay for long-term care, without stripping away your financial security. 

Those who have less than $50,000 in retirement assets may qualify to receive Medicaid benefits that will cover some of your long-term care needs. If you are like the majority of Americans, with assets between $50,000 and $1 million, you could be faced with long-term care bills that will drain your resources and destroy your financial security. 

Long-Term Care Insurance covers skilled, intermediate and custodial care in your own home or an adult daycare environment, assisted-living facility, or nursing home. With Long-Term Care Insurance in place to pay for this care, your spouse and children are protected from having to assume the heavy financial burdens that this care would otherwise create. Long-Term Care Insurance can also make the difference between having to move into a care facility or being able to receive care at home surrounded by your loved ones. 

If you are in your 40s or 50s, and not able to self-insure, it’s important to include Long-Term Care Insurance in your overall financial planning not only to ensure you are not turned down but to also lock in to lower premiums. Whether you decide to self-insure, purchase a Long-Term Care Insurance policy, or rely on Medicaid, the Insurance Specialists at MHG will guide you through the various options to ensure you have made the best choice for you, your family, and your financial circumstances. 

Contact MHG Insurance Brokers to learn more about obtaining Long-Term Care Insurance, Life Insurance, and the different types of insurance policies available by calling 954-828-1819, or visiting online at mhginsurance.com. Let us help you begin the preparations to protect you and the ones you love most.