Don’t Wait Too Long to Purchase Long Term Care Insurance
Long Term Care
Preparing for the growing cost of care is a critical part of retirement planning.
Most standard health insurance policies, including Medicare and employer-sponsored plans, don’t cover long term care. Only Long Term Care (LTC) insurance and Medicaid will pay for long term care, but Medicaid requires you to spend down your assets to qualify for benefits. LTC insurance can help fund care in the event you develop a debilitating condition like Alzheimer’s or stroke. It covers the expensive costs of extended, and often permanent, assistance—and it’s important to put a plan in place well before you’ll need care.
Long Term Care Insurance Provides Options
There are many ways to pay for care when you need it and where you’d like to receive it.
Unfortunately, many people delay purchasing a policy until it’s too late and either can’t qualify for the plan they need, or find themselves priced out. While experts advise people to begin considering LTC insurance in their 50’s, when premiums are lower and good health may provide more options, a recent AARP study found that although adults over 50 acknowledge they may need future assistance, few have done anything about it.
While it’s easy to postpone purchasing insurance, it doesn’t mean that people aren’t concerned. The AARP study found that 60% of adults over 50 are concerned about multiple issues regarding aging, primarily losing their independence and being a burden to their families.2 Monthly home care costs, which averaged $4,500 in 2021, could last for years, and will only continue to increase with inflation, increased demand, and higher labor costs.3 The idea of relying on family for care, while perhaps good intentioned, is ultimately unwise because family members are usually untrained and unprepared to provide proper care, which can be financially, physically, and emotionally devastating.
LTC insurance provides guaranteed, tax-free benefits that provide access to your choice of care services and settings, including your home. Many options are available, so it’s best to seek the assistance of an experienced LTC Advisor.
Nobody likes to think about the possibility of needing care, but it’s best to figure out your LTC plan now while you can secure the coverage you’d like. Premiums vary depending on your age—rates increase with each birthday—and the condition of your health when you apply.
Learn more about your LTC insurance options, including plans with exclusive alumni discounts.
1 ”Long Term Care Readiness,” AARP Research, June 2022, AARP.org/Research.
2 Long Term Care Readiness, June 2022.
3 Cost of Care (Monthly) – Homemaker Services, Assisted Living, Nursing Home, American Association for Long Term Care Insurance, aaltci.org.
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