As I have said many times, long-term care is the greatest threat to one’s retirement. Nothing else can devastate retirement like the expense of long-term care.
Costs continue to rise, and basic Medicare doesn’t really cover the costs of assisted day-to-day living. Therefore, it is very important to have a supplemental insurance plan which will.
Here are 5 “Insider Tips” you may find helpful when looking for Long-Term Care insurance for yourself or your loved ones:
- Buy sooner rather than later.
You can buy long-term care insurance up to age 75 from most companies, but you’ll pay more at older ages and if you have health conditions. - Work with an independent agent.
Prices vary by insurer for the same amount of coverage. Work with an agent who can sell – not just quote – policies from different carriers. A good agent will know which companies will likely accept you for coverage based on your health and give you the lowest price. - Start with a budget.
Decide what you’re comfortable spending for coverage, and ask the insurance agent for quotes that fit your budget. - Plan realistically.
According to the U.S. Department of Health and Human Services, almost 70% of today’s 65-year-olds eventually will need long-term care, and 20% will need it for longer than five years. The average annual cost of a full-time home health aide is $46,332, compared with $82,125 for a semi-private nursing home room. - Go for a simple vs. souped-up policy.
Ask for quotes for good, better and best coverage from each company to see costs at different levels. - Bonus!
Avoid an all-or-nothing approach when buying long-term care insurance. Think about the costs you can handle and what you want to insure. “Don’t buy more than what you need.”