Six Reasons To Consider Buying Long Term Care Insurance

By now it is no surprise to you that our nation is aging. Baby Boomers are the largest segment of our population. With over 10,000 people currently turning age 65 every day, more and more people need Long-Term Care services. However, given these staggering numbers, Long-Term Care insurance is still a major gap in most people’s financial plans. Here are six reasons why you should consider buying LTC Insurance.

1.      You are in good Health

If you are in good health now in your 50’s or 60’s there is a good chance you will live into your 80’s and 90’s thus increasing the chances of needed Long-Term Care. Take advantage now of the good health discounts available while you still can.

2.       Emotional Toll

If you’ve had a personal experience with someone that needed LTC, you know the emotional toll it can bring. Without insurance, you may have to rely on your children or other family to take care of you. Would you really want to put them through that?

LTC Insurance not included

3.       The Government will not pay for LTC

Medicare only pays for a short period of time, usually not past 100 days. The government knows they can’t afford to pay for this given the other entitlement programs already in place. That is why they are giving tax advantages to buying long term care.

4.       Rising Costs

If you think it is too expensive then wait until you have to pay for it without Insurance. When it comes to cost of care, Washington State is higher than the national average. In a recent study by Genworth Financial titled “2010 Cost of Care Survey” the median cost for LTC Home care in Washington State is $49,695 versus the national median of $43,472. Care in a nursing home is even higher.

5.       It Won’t Happen To Me

According to the U.S. Department of Health and Human Services, 7 out of 10 people reaching age 65 will need Long-Term Care services at some point in their lives. That is pretty sobering considering the odds of using your auto and home insurance.

6.       Home is where the heart Is

The thought of going to a nursing home is not a pleasant one. In fact, most people would rather remain in their home. And that is exactly what LTC insurance provides. It allows you the freedom and money to chose where you want to receive care and that includes your home.

If you would like to discuss your own personal situation or would like a Long-Term Care insurance quote, please reply or call me at 360-452-9200

Want more information? Please visit Matt Elwood - Allstate Insurance to get more information on the Allstate products and services I can offer in Port Angeles, Sequim or anywhere Washington State. 

What Is The Best Age To Buy Long-Term Care Insurance?

Couple considering when to buy LTC Insurance

By now you understand that having Long-Term Care insurance is a good idea, but when the heck are you suppose to buy it? Boomers get inundated with financial advice everywhere they turn. Depending on what time of the day it is you will get a different answer on the best time to buy LTC insurance.

Dave Ramsey

Dave Ramsey says the best time to buy is after age 60. In Dave’s cost comparison example, he illustrates how it is cheaper to buy LTC at age 50 than it is at age 60. This is of course true. However, his premise that if you wait to buy at age 60 and invest the difference you will come out ahead is not always true. Even if you had the discipline to invest the difference, (which most people don’t) doing so in the stock market gave you a whopping 1.2% average from 2000-2009. I’m not sure where you can get the 5% he talks about these days. Given interest rates and returns of other investment vehicles, you are probably losing money when considering inflation. I do, however, agree with his second point that it is a personal decision and that you should buy it when you can afford it and have peace of mind.

Matt Elwood

I say the best time to buy Long-Term Care insurance is when you can reasonably afford it. There is no magical age when it comes to buying insurance. If you know you need it and you can reasonably afford it, you should buy it. Insurance is meant to provide financial protection from a risk you can’t afford happening without it.

Is It Time For You?

If you would like to have a personal discussion about your Long-Term Care needs, please reach out to me at 360-452-9200

Want more information? Please visit Matt Elwood - Allstate Insurance to get more information on the Allstate products and services I can offer in Port Angeles, Sequim or anywhere Washington State. 

What Are The 6 ADLs of Long Term Care Insurance?

The simple daily tasks of life that you took advantage of while you were younger, now seem to be getting harder. And now that you are living alone, you start to wonder how you will get along if you can’t take care of yourself. That is where Long Term Care insurance comes in. LTC pays for support services if you can’t perform the 6 activities of daily living. So what exactly are these 6 ADLs and how do you activate a LTC policy?

The 6 Activities of Daily Living

Assistance with LTC

The specific definitions vary from company to company, but here are the general 6 ADLs: Eating, Bathing, Getting Dressed, Using The Restroom, Transferring (moving in and out of bed/chair) and Continence (controlling your bowel or bladder functions). If you can’t do 2 of these 6, you qualify for benefits under at Tax-qualified LTC insurance policy.

Cognitive Impairment

The other way you can be eligible to receive LTC benefits is if you have a cognitive impairment. An example of a cognitive impairment is Alzheimer’s disease or other forms of dementia. If you know someone that has been touched by this disease, you know very well emotional and financial challenges associated. If you would like to learn more about how Long Term Care Insurance works or if you would like to receive a quote, give me a call at 360-452-9200. You can also email me at mattelwood@allstate.com

Want more information? Please visit Matt Elwood - Allstate Insurance to get more information on the Allstate products and services I can offer in Port Angeles, Sequim or anywhere Washington State.