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A Look At Long Term Care Insurance

As we age, we plan for retirement and should strongly consider the potential need for long term care for ourselves and our spouse.  The cost for care is high and ever increasing.  So you have two choices, purchase the insurance, or try to save and invest enough and cross your fingers you won’t need the coverage.  Let’s look at the numbers.

If your goal was to have say $400,000 for nursing home care you’d need to set aside approximately $1,600 a month for 30 years and get an average return of 6% on that investment.  For a similar amount of coverage a long term care policy premium would be around $450 per month.  Much more affordable for most people.  

Of course, if you never need the coverage, you would lose the paid in premiums.  That risk is inherent in all insurance as you purchase coverage for your house that never burns or collision on a car that is never wrecked.  The odds you’ll need long term care far exceed the chance of a house fire or totaled auto.  Nearly 67% of all American will need some form of long term care.

Another reason to consider this coverage is that it provides immediate protection, with no need to wait and accumulate a reserve of cash.  Remember, Medicare only covers your medical expense not long term care, and only after all your other assets are exhausted.   

Protect yourself, your family, and your estate with Long Term Care Insurance.  Here is what to consider when shopping for a protection plan: 

  • Start early – Buying a policy in your mid 50s is ideal, it will save you nearly 40% over that same policy when your 65

  • Consider a plan that combines LTC and a permanent life policy

  • Limit the term – the average stay in a home is 28 months

  • Choose a longer elimination period – this is a “time deductible”.  Opting for a 6 month elimination period can save around 20%

  • Consider inflation

  • The national average cost per day is $235 for nursing home care.  To keep premiums affordable, check your local market.  $150 per day can go a long way in certain areas. 

Give us a call today at Ieuter Insurance and we can help you with this and all your insurance needs.