Top 10by Cindy Sherwin on 10/07/13
Well, it looks like I'm a cold weather blogger. With one of the most beautiful spring/summers we've had in years, I spent more time outside than at my desk, as do many Northwesterners. Now that the rain is back, so is my blog.
An article caught my attention this morning "Top 10 Reasons to Buy Long Term Care Insurance". I have my own top ten list, compiled over years of talking to people about their reasons for meeting with me. It turns out that my top ten matches those listed in the article pretty closely.
Not surprisingly, "To protect assets" and "To relieve burden on family" top the list. But even folks without a lot of assets to protect, or without family to lean on, have good reason to buy this protection. Numbers 3 and 4 - "To get high quality care" and "To choose care and provider" are equally important. Even if a client isn't that worried about blowing through their assets to pay for care, they will definitely want to choose where they will receive care and to have good quality caregivers.
Most people want to stay in their own home when they start to need assistance. If they are paying out of pocket for caregivers, they would have to budget an extra $3,000 a month to pay for about 30 hours a week of care. For someone living on social security and investment income, that's a pretty huge chunk to come up with, on top of mortgage payments, food, medical, and other expenses. If a long term care policy is in place, all they need to do is file a claim and that care will be paid for. (disclaimer - assuming the policy has a monthly benefit of at least $3,000)
Having a policy or not could mean the difference between being able to stay in the home or not. If personal funds are used and run out (which they will quickly at that rate), then Medicaid, state assistance, may kick in. At that point, the choice is no longer in the hands of the individual, but is dictated by Medicaid rules.
Check out the article at the link below for the other reasons. (Spoiler alert - Number 5 is about staying in the home!) Whichever reason(s) you may relate to, the thing to keep in mind is that you have to get the insurance when you are young enough and healthy enough to qualify. Waiting until you need the insurance is like trying to get homeowner's insurance after your house is on fire.