#1 – “I’m Too Young to Consider Buying LTC Insurance”
Presently 40% of the people in the U.S. receiving Long Term Care are of working ages between 18-64 and 60% of the folks are 65 and older. Planning to seriously look at this Insurance when reaching age 50 is prudent! The prices are as low as they will ever be and you will lock in rates forever. In addition, the longer you wait, the better chance there is that your health will change, and in turn, rates will rise or if it’s a serious change, you may become ineligible. Because the rates rise considerably when you get older, even if you start paying premiums at age 60 instead of age 50, by the time you reach age 80, the total premiums paid will be more ( than starting at age 50) because the premiums are that much higher. Starting early locks in your health status and, in the end, saves you the most money!
#2 -” I’ll save the annual premium and put it in an Investment Vehicle and “self-insure”
If a couple deposits $3,000 per year in an account, and able get 5% compound interest… after 15 years, they will end up with about $75,000. However, in 15 years one year in a Nursing Home will cost about $170,000…this approach is simply not prudent planning.
If another couple buys Long Term Care Insurance at a cost of $3,000 per year, it will buy them a “Pool of Money” of protection ON DAY ONE of approximately $450,000. In 15 years, this Pool of Money will grow to about $900,000. This large amount of money will provide each of them with several years of Professional Care if and when needed
These examples clearly show that the same annual $3,000 produces two VERY DIFFERENT RESULTS! The first example can result in a family Retirement Nest Egg being destroyed due to unexpected Long term Care costs. In addition, family tension, disappointment and regret, will all follow. The second example shows that with a large Pool of Money available, retirement savings are protected and a tough situation is made a lot easier for all involved! Two different results with the same $3,000 annual expense!
#3 “My Family said they will take of me”
Years ago, families did take care of each other. However nowadays, with two-income families and family members living in different parts of the country, it’s difficult to care for the elder members that need daily care. In addition, wanting to care for a loved one might be the desire, but the reality is lifting someone in and out of bed, or bathing that person , changing diapers and cleaning up after “accidents”. Long Term Care Insurance provides a large sum of money over many years to hire professionals to come to the Home and provide first-class care so the family is less burdened and quality time can be spent with the care recipient.
#4 “Medicare and Medicaid will pay for my Long Term Care”
Medicare will pay for a very short amount of care, about 3 months, if it is associated with at least a 3-day Hospital stay. Medicaid is medical welfare, designed for the impoverished. Medicaid will pay for your care after they make you spend down your assets to poverty levels, as well as capture your Social Security check , Pension payments, your Dignity etc.
#5 Long Term Care Insurance is too expensive
The average annual cost for a LTC Insurance Policy is about half the price for one month in a nursing home or one month of professional Home Care. If you can’t afford such an annual payment, how will you pay twice that much each and every month, possibly for many years if you should one day need care?