If you can afford to carry long term care insurance, have assets to protect, or would need assistance if you were unable to care for your own daily needs then you should consider carrying long term insurance coverage. Statistics say that your likelihood of needing long term care at some point in your life is extremely high, and much higher once you hit 65.
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The cost of such care is staggering and can easily lead to a complete draining of all your financial resources rather quickly. Therefore, in order to protect yourself and your loved ones from the high cost of long term care, long term care insurance is an excellent investment for most people.
Options in Long Term Care Insurance
There are decreasing numbers of long term care insurance providers in the market place today. More and more companies are leaving this market, probably because of the lack of certainty considering how long they will have to pay claims once a diagnosis of long term care is necessary.
If an insurer has not collected enough premiums, a long-lasting illness could drain reserves. While long term care insurance is relatively new, there have many changes in it and many insurers have already left the marketplace.
Stand-alone comprehensive policies are the option that offers the most options and give you the choice of different types of long term care. Such policies are flexible and are likely to adapt to whatever changes come between now and when you need to use your policy.
You may also adapt your cash value life insurance to cover your long term care needs. This type of policy involves a rider to provide the LTC coverage. It has its limitations and would not work well in most long term care situations.
A single premium deferred annuity is another LTC option. You can pay a one-time fee with such a policy. It is a tax-free contribution that also works as an investment if you don’t need the long term care.
Long term care policies can also be mixed with disability income policies. Before age 65, the policy addresses disability income. After that age it is long term care coverage. Premiums are higher on this type of plan than on stand-alone plans.
Things to Think About When Purchasing Long Term Care Insurance
You need to weigh a variety of factors when it comes to deciding if you need long term care insurance. You may want to consider the following questions.
- How is your health?
- Do you have, or are you predisposed to, any conditions that are likely to make you need long term care?
- Are you obese?
- Do you smoke?
- Do you have family members who have needed long term care for issues that are hereditary?
- At what age did most people of your gender in your family die? Of what?
- Do you have a risky job that puts you in danger on a regular basis?
- Do you take part in risky sports regularly?
By evaluating the answers to the questions above, you will be able to determine whether or not you should invest in long term care insurance.
Purchase Long Term Care Insurance
As with the purchase of any type of insurance you need to make your choice carefully when purchasing long term care insurance. You will need to get a variety of quotes from different companies and compare them to make sure that the policies being offered are similar. Be careful of exclusions and limitations. By doing so you have the best chance possible of choosing coverage that ideally meets your needs.
You only need to take out one long term care insurance and, because rates are lowest when you are young, the first policy you take out will likely be the only one you take out. Therefore you must be even more prudent in your selection of a long term care insurance policy.
Check into the company you are considering doing business with. If they do not have a stable financial outlook for the future, look elsewhere. You want your insurer to still be in business far into the future, so that you can collect on claims if you need to. In addition you should check out how the company treats customers by looking at the types of complaints made against the company, especially on a local level.
Get your various online quotes quickly and easily with the free online insurance quote tool. Let the tool ask you the questions, submit your information to different companies and present you with an easy to work with format. Take the time to consider all the variables concerning long term care insurance before you make your decision.
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