Long-Term Care Insurance May Be The Perfect Investment Tool
Did you know that when you invest in long-term care
insurance you're actually investing in yourself and your future? Although it
can be a bit difficult to imagine now, but you will most likely need some help
when it comes to taking care of yourself in the future. That being stated,
healthcare of that nature can be incredibly expensive. That means you need to
ask yourself now how you will go about paying for it. You certainly don't want
to drain your savings or investment accounts. The good news is that you can
invest in long-term care insurance instead.
In essence, long-term care includes a vast amount of
services that simply are not covered under your standard health insurance plan.
For example, you may very well need help performing daily activities such as
bathing/showering, getting dressed, going to the bathroom, and getting in and
out of bed. Health insurance doesn't cover those things, but long-term care
insurance does. In fact, most of the available long-term care insurance
policies cover you whether you are living at home, at an assisted living
facility, at a nursing home, and spend time at an adult day care center.
Although investing in long-term care insurance is an important aspect of your overall investment portfolio, a great deal of people wait until it's too late. If you have a pre-existing debilitating condition then you will not qualify. That is exactly why you shouldn't wait until your 50's or even 60's to start investing in long-term care insurance.
Long-Term Care Insurance Protects Your Savings
You
may not want to face this now, but you need to since long-term care costs can
significantly exhaust your retirement savings. For example, the median cost of
care in a nursing home is $89,297 per year, and that is for a shared room. The
price spikes even more if you want your privacy in single room. Approximately 50% of 65 year olds will end up
needing some type of long-term care help. Although the vast majority will
require services for less than two (2) years, nearly 15% will require services
for five plus years.
If
you fail to set up a long-term care insurance policy before you actually need
it, you will have to pay for those expenses out of pocket. In essence, paying
for long-term care out of pocket can completely deplete the investments that
you have made and are making today.
5 Factors That Help Determine The Costs Of Long-Term Care Insurance
Your
long-term care insurance rate and ultimately the amount of money that you will
spend on the investment are determined by multiple factors. They are as
follows....
- Your Age - As you age, you will pay more money when you initially purchase the policy. That is why it's so important to invest in long-term care insurance when you are young.
- Your Health - As your health deteriorates, you will pay more money when you initially purchase the policy. That is why it's so important to invest in long-term care insurance when you are young and healthy.
- Your Gender- Females typically pay more money than men when they initially purchase the policy because they tend to live longer and have a far better chance of making claims on their long-term care insurance.
- Your Marital Status- Long-term care insurance premiums are less money for married people then they are for single people.
- Your Amount of Coverage: Much like any other type of insurance policy, you will pay more for higher coverage amounts. For example, you may prefer to pay more for higher limits on the daily and lifetime benefits, cost-of-living adjustments that protect against inflation, and shorter elimination periods. You may also decide to pay more for fewer restrictions on the types of care that is covered.
In
conclusion, any shrewd investor should seriously consider purchasing a long-term
care insurance policy. There certainly is a great deal of advantages to adding
this essential investment tool to your overall investment portfolio. It may
very well make the difference of a comfortable retirement compared to one where
you will end up struggling from a financial standpoint.
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!
