5 Reasons To Consider Long Term Care Life Insurance

5 Reasons To Consider Long Term Care Life Insurance

One of the main reasons people dont purchase long term care ( LTC ) insurance is over the premiums are important and they feature the gamble of paying all that money against the hap of needing long term care is just not worth it. Many people who have purchased long term care insurance a decade ago have allowed their policy to omission since premiums have doubled in some states in the elapsed seven years. Premiums can scale from $2, 500 to $5, 000 per year which explains why there has been a significant drop in sales of new long term care insurance policies.

Why should I purchase long term care insurance?

The baby boomer begetting makes up about 25 percent of the U. S. population. Thats about 77 million people. By the year 2020, about 33 percent of the population will be in their 60s. Two - thirds of those over the age of 65 will need long term care at some point during their stretch.

Here are five reasons why you need to purchase long term care life insurance.



Theres a good chance you might need long term care insurance. According to information from the U. S. Department of Health and Human Services National Clearinghouse for Long Term Care Information ( 2008 ), about two - thirds of those over the age of 65 will be in need of long term care. Long term care is not special to the elderly since these studies show that 40 percent of people receipt long term care services are in the age group of 18 to 64. Since life spans are longer, theres a pretty good chance LTC benefits will come in handy.


You dont need to worry about losing your premiums with a combined long term care life insurance policy! Long term life insurance combines the benefits of both long term care insurance and life insurance. LTC riders are available on lasting ( whole ), term and universal life insurance policies. The rider will cost extra, but its well worth the paymentthe combined features of this unique policy will prepare a pay off either way. If you need LTC benefits, this policy will cover your costs; if you dont need these benefits, your beneficiary will receive death benefits instead.
For instance, a 50 - year aged person who buys a $500, 000 whole life policy might have to pay $350 extra a year for a long term care rider which would term him / her to get up to $10, 000 a month in long term care benefits until death benefit runs out. If long term care benefits are not used, the proceeds of the death benefits will be paid to your beneficiary. Of course, prices and terms will vary from company to company and from product to product, which is why you should shop around for the best long term care life insurance policy that would best suit your needs.



You can get quality long term care services. Federal - state health insurance plans, approximating as Medicaid, furnish funding for low - income, hard up people. Medicare, the federal health care program for those over 65 does not cover routine nursing home care. Besides, many of these facilities run on low budgets and you may not get the humanitarian of quality care you would equal.



Long term care insurance can prevent a financial wipeout. Long term care costs can quickly deplete your coin. The average costs can be more than $70, 000 per year in a private nursing home. The cost of obtaining long term care at home can be more, and, costs keep rising. You would need to consider whether your financial plan will be able to sustain allying a cost, if corresponding a need arose. If not, long term care insurance would be worth considering.



The number of fossil people living independent lives is on the issue. Congruous to advances in medical material and technology, people are living longer but require assisted living services. Children and other kinsfolk may not live in muggy proximity or may not be able to offer the philanthropic of daily care that is needed during convalescence. A long term care plan can help you help yourself to allied care and facilities.





Tips on purchasing long term care life insurance

Stand - alone long term care insurance products may offer exceeding coverage and benefits than a combined policy. You may be able to get yourself broader cover options through this type of policy and adjust your coverage by abbreviation your coverage period.

You can swap your whole life insurance policy to a new policy with an LTC rider, tax - free, provided you have accrued enough cash equivalent. Those who have a whole life insurance policy and find they dont need the coverage might find it more beneficial to make the knops. If you smartly cash out the policy, the proceeds you receive may be liable for taxes on the investment gains.

Before buying long term care life insurance check whether the policy will pay for in - home care and nursing home facilities. Check how much coverage you can get. Some insurance companies will pay a scale of the death benefits. Make thoroughgoing your policy is sheltered from accretion and the benefits proverbial will be tax free.

Most experts guess the best time to purchase would be in your 50s. Check out online life insurance quoting services and brokerage firms for free quotes and compare what you get before making a adjudicature.