Everyone has different perspective on how he or she wants to receive care in the future. Although many people are already aware on the repercussions of long term care, they are still uncertain of buying insurance while others choose to self ? insure or wait for Medicaid eligibility.
What tightens the skepticism of consumers to buying long term care insurance is its complicated features and cost. This insurance is also not for everyone, so people are confused whether they need it or not. Before buying long term care insurance policies, there are few important considerations before making the move:
The Cost and Your Ability to Pay
If you have a clear picture on what could happen to you when you hit 50, then horrible scenarios might be haunting you every day. The rates of long term care services are awful and what discouraged people from insuring their health, particularly nursing home care. In some recent surveys, the national average for nursing home care has reached $ 75,000 in 2010 alone and is expected to double in few years. Without insurance or some kind of financial planning, you will see your assets and savings drained in just few months.
Do you need LTCi? The answer is your financial status will tell you. Not everyone qualifies and needs LTC insurance. You must assess your net worth (except the home) and the total investments or savings on your retirement. If you accumulate less than $500,000 in total investment or savings then you may not be able to afford LTC premiums.
If you have saved more than $1 million worth of investment and savings then you may opt to self-insure for good. Self-insuring, however, can downsize your nest eggs once they are appropriated for a year stay in a nursing home or any facility.
Another way to see if LTC insurance is right for you is to estimate the premiums to the percentage of expected retirement income. If the premiums take more than 10 percent of your expected income, it means that you may not manage to pay for the coverage in the long run.
Single individuals may need greater long term care services because they less likely have a family member to assist them. According to research, women also need LTC than men because they have longer life expectancy and bear care giving roles that society expects from them.
Also, you must consider how this care could affect the lives of your family, your spouse, or any of your dependents. If you are saving enough for your loved ones, then it would be beneficial to have LTC insurance or any other financial protection.
Your health is the primary consideration for your future care. Your lifestyle is also a predictor of what your health becomes in your 50s or 60s. If you are a chain smoker or a binge drinker, you must limit alcohol intake and smoking to avoid its consequences on your health in later years.
If chronic illness or disability is rooted in your family’s genes, they you may probably acquire the same health problem as you age. Longer life expectancy in your ancestry could also imply that you are going to live longer; thus, living longer increases your health and financial risks.