Thinking about deciding on a policy that best suits you? It’s a lot easier than it sounds. Many people either don’t know the facts or are unaware of the major costs of long term care. Even if you have a great retirement plan, it can’t save you from the high expenses of long term care.
Long term care is extremely important because if you get to a certain point where you need assistance in bathing, getting dressed and preparing meals, they are there to help you. Life is very unexpected and as of right now long term care is averaging at a price of $80,000/year. Most people can’t afford these even with a retirement plan. This is the most common misconception and also a big mistake people make.
Neglecting enrolling in a plan as soon as possible will also cause your expenses to rise. The older you are and the more your health is affected, the more expensive the premium you will pay.
A cheaper alternative is short term care. However, you will be receiving much less coverage. You may get a year of assisted living but most likely no coverage for a retirement facility or home care.
A combination of life insurance and long term care is something called Hybrid insurance. This is a great option if you have the means to put down a lump sum of money. Even though it can be costing – it has many benefits. You may have to pay an upfront fee that could cost around $70,000, but you will never face rising premiums. They also offer the option to leave the money to a selected beneficiary if you don’t end up needing the money for long term care.
Whether you are able to pay for Hybrid, or you want to earn interest on your money there are countless policies that can be structure to your benefit. The most important thing is you choose an affordable policy for you, that will benefit you and your family in the long run.
Insurance can be costly, but you are preparing for you and your loved ones potential needs. The sooner you invest in your policy the better. You never want to end up in a financial bind, with no way out. You can’t rely on just your savings or a retirement plan. The prices of long term care are expensive and there is no way to predict whether they will rise. Be smart about your future by investing in it long term.