Understanding Long Term Care Insurance
The majority of Americans who live past the age of 65 will require some sort of help caring for themselves. In fact, nearly 70% of Americans 65 and older need long term care at some point, according to the U.S. Department of Health and Human Services. Long-term care insurance is a great way to offset costs of healthcare should the need arise. Instead of dipping into your savings or retirement accounts, the insurance is there to cover those costs.
Long-term care insurance is one of the most complex types of insurance you may consider purchasing. Those shopping for coverage are encouraged to compare rates from multiple carriers, be flexible on terms, don’t go overboard with coverage, and consider adding inflation protection since medical costs will undoubtedly increase in the years to come.
Here are some points to consider that may help you better understand the costs and benefits of long-term care insurance:
Policies normally pay benefits by the day, week, or month. You may want to evaluate what long-term care facilities in your area are charging before committing to a policy.
Some policies limit the total benefit they’ll pay over the life of the policy. This could be stated in years or in total dollar amount.
Insurance companies use certain criteria to start benefits. Commonly this is an inability to do a certain number of the activities of daily living without assistance.
Many policies have benefits for Alzheimer’s disease as well.
Another important thing to consider is that having an alternative safety net at your disposal (investments for example) will offset the potential costs of long-term care. Think of it as a savings account for the out-of-pocket costs that may be incurred during a scenario where long- term care is required.
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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com