When Should You Purchase LTC Insurance?
People are living longer! That's good news, right? Yes, of course it's good news, but there are some concerns that go hand in hand with today's longevity.
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According to the U.S. Census Bureau, the average age of Americans has been climbing steadily and the remainder of the 76 million U.S. Baby Boomers will reach the age of 65 by the year 2030. That means the population of elderly citizens in the United States has nearly doubled.
The biggest question in the minds of our aging citizens and their families is: when is it a good idea to get long term insurance?
According to predictions from the U.S. Department of Health and Human Services about 40% of people 65 or older have roughly a 50% lifetime chance of eventual admission into a nursing home.
In addition to that estimation, the Health Insurance Association of America predicts that by 2020, 12 million people in this country may need LTC (long term care) before they pass away. If unprepared, this can devastate a family's financial situation.
The best defense against such devastation is the purchase of an effective health insurance and life insurance policy. As our nation ages, it's also a good idea to get long term insurance put into place before it is even needed.
Long term care insurance is different from life, health, and disability insurance. LTC offers a wide range of nursing, social, and other services for people who need ongoing assistance with daily living due to a chronic illness or disability.
Medicare and Medicaid only cover this kind of care in certain, limited situations, leaving those who need the care or their families to pay for it themselves. Within a very short amount of time, assets and cash can be drained entirely away.
In order to avoid these harsh circumstances, it's a good idea to get long term care insurance when you are still relatively young. There are a variety of long term care insurance plans that offer excellent coverage and are affordable.
Unfortunately, these plans typically will not accept unhealthy people, and the premiums rise right along with natural aging. It makes sense to go ahead and purchase a plan at a younger age when premiums are at their lowest and the applicant is still reasonably healthy.
Investing a little money now on long term care costs can save you a fortune later on. Remember, it's a good idea to get long term care insurance now to spare your bank account later!
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