 | |  | |  | |  |
| Can you prevent a lifetime of savings from being spent for long-term care costs? |
| Will you or your parents be lucky enough to celebrate a 100th birthday? |
Who needs Long-term Care Insurance?
You should NOT buy LTC Insurance if:
You should consider buying LTC Insurance if:
Doesn't Medicare or Medicaid pay for long-term care?
How much does care cost without a LTC policy?
When should I consider buying Long-term care insurance?
What kind of Long term care policies are there?
Long term care insurance is a critical component of any complete
retirement plan.
You should NOT buy LTC Insurance if:
- Your only source of retirement income is going to be social security income.
- You have limited assets.
You should consider buying LTC Insurance if:
- You have a reasonable amount of assets you wish to protect.
- You want to transfer the financial risk of your LTC costs to the insurance
company.
- You have sufficient income to pay bills and pay the LTC premiums.
- You would rather leave your savings to your family rather than spend it on care.
Doesn't Medicare or Medicaid pay for long-term care?
- Many people believe that. However, Medicare only pays for a few months worth of
care and then only under certain circumstances.
- Medicaid will pay for care after all of your assets are spent down. The rules on
Medicaid planning are becoming very strict and it is getting harder to qualify.
How much does care cost without a LTC policy?
- Home health care costs are about $18-22 hr. For part-time care of 4 hours a day,
7 days a week, that is an average of $560 a week or $2,240 a month.
- Assisted living costs as quoted by a local facility ranges from $2,500-$3,500 a
month depending on level of care. $3,000 a month is $36,000 a year.
- Nursing Home costs can range from $6,000-$7,000 and up a month.
When should I consider buying Long-term care insurance?
- Since LTC insurance policies are underwritten based on health, it would be wise
to obtain coverage BEFORE any significant health issues have occurred. The
premiums will be much lower at a younger age so purchasing between ages of 45-
55 is ideal. The maximum age insurers will consider issuing a policy is about 85
years old.
What kind of Long term care policies are there?
- Traditional long-term care insurance. You purchase a policy and make
premium payments every year. Remember to put the inflation rider on the policy
to cover the rising cost of care.
- Life insurance/long-term care policy. A life insurance policy with a long term
care rider. The life insurance benefit can be used for long term care. If you do
not use the long term care benefit, then the life insurance is paid to the
beneficiary.
- Asset based long term care. Annuities with long term care riders. The annuity
funds serve as a "deductible" so the premiums for the long term care are smaller.
Long term care insurance is a critical component of any complete
retirement plan.
| Long-term Care Insurance |
Vital Plan, Inc.
The above is not intended as legal or financial advice. Please contact an advisor for guidance for your personal situation.
Contents subject to change. Every attempt has been made for accuracy, however, we are not responsible for errors in text.
Contents subject to change. Every attempt has been made for accuracy, however, we are not responsible for errors in text.
Shelly Ballard, CSA
Tarkenton Financial Representative
St. Petersburg, FL
Cell: 727-417-6107
shelly@vitalplan.com
Tarkenton Financial Representative
St. Petersburg, FL
Cell: 727-417-6107
shelly@vitalplan.com
Copyright 2008, Vital Plan, Inc. All Rights Reserved
 |
 |
 |
 |
 |
 |
 |
 |
 |
| One source used was the Shoppers Guide to Long Term care Insurance 2003. Contact us for a FREE copy of the this guide written by the NAIC, National Association of Insurance Commissioners. Figures for care costs were quoted from local sources due to the Guide costs being from 2001. |
| Request a FREE Quote Today to prevent a lifetime of savings from being spent on long term care. |
| CLICK picture below for LTC Article: |