I'd like to hear some thought about paying the high premiums for a strong Long Term Insurance plan or simply investing the money wisely to be used later wben needed. Some people think the huge amounts of money spent on premiums could be put to better use.
I have my father in nursing home with alzeihmer. It is an expensive proposition to have to stay in nursing home. Insurance costs are function of what it costs to maintain viable policy. Most of us have health insurance which is also very expensive when you start paying for yourself rather than the company you work for. I think investing in LTC is a good way of insuring against large expenditures when they become necessary.
Your question is absolutely appropriate. The biggest issue you face if you wait is that the need for LTC is typically unexpected. At $7,000 per month, nursing home care will quickly drain your estate. Similar to life insurance, LTC insurance is intended for estate planning and preservation purposes, as much as for the insurance side. Do consider it carefully before dismissing it out of hand.
Based upon your profile, I'm guessing you to be in your 50's. If so, and if you purchase a policy that includes a 5% compound inflation protection feature, you would have a pool of benefit dollars to spend on care that would be far more robust than you could hope to achieve in any kind of investment.
No one expects to have a chronic illness or a severe disability that requires long term care. But it happens, and nursing home costs are expensive and are escalating every year. It is not unusual to pay $100,000 or much more a year, depending on the level of care needed. Even if you just need assistance in bathing or dressing, you may find your health insurance policy does nothing to pay for those necessary, everyday expenses. Medicare will barely make a dent in those expenses and Medicaid won’t help offset costs until you have depleted all other funds, and at that point you may find you are stuck with whatever option they decide for you. The cost of long term care depends on your age when you buy the policy and how much care you anticipate you will need. Buying in your 50s, or younger will ensure a lower rate. If you wait to buy at an older age the price will be much higher – or even prohibitive. Once you purchase a policy you may have a waiting period (typically 60 or 90 days) before the policy will pay expenses. Also, whether or not they will pay on your policy is determined by a number of factors, including your condition and the tasks you can or cannot perform. Also, cover all contingencies by making sure your policy covers care at home, in an assisted living facility and in a full-care nursing home.
I believe Long Term Care insurance to be a good investment, and have been encouraging my parents to purchase a plan. Working with seniors, I see every day how much better it is for them to be able to stay in their homes, and how much more cost effective it is than to be in a nursing home. However, there's still a need for care in the home, and there's still a cost. Long Term Care Insurance companies are great for helping out with reimbursement for in home senior care, to provide respite for family caregivers. <a href=http://www.homeinstead.com> Home Instead Senior Care </a> is a home health care company that accepts Long Term Care Insurance.