Financial Impact:

The reality is that the longer you live, the greater the likelihood is that you will require long term care.  70% of adults overage the age of 65 will require long term care. Triggers for policy benefits are if hands-on-assistance is required with eating, bathing, dressing and general mobility. LTC carriers paid roughly $11 Million a day in LTC claims in 2010.

The Planning Process:

Wealthy individuals may have the financial means to cover costs this is not a viable strategy for most people.  Whether you are wealthy or not, paying a reasonable insurance premium to transfer one of the biggest financial threats that you are likely to face can be a smart move towards protecting assets and loved ones.

Reducing your Costs:

Everyone has competing financial priorities. Consider how much of your cost of care you’d be willing and able to cover on your own. Decide how much you can start with based on your budget.  Be sure the company offers the option to increase coverage without proof of good health.

Designing your policy:

Daily benefit maximum times the benefit period, a minimum of 3 years is recommended, creates a pool of dollars to be used for your long term care costs.  To help lower the cost of the policy the elimination period or waiting period can be legthened from 30 days up to 365 days. Various inflation protection riders and other riders can help customize your plan even more.

Click here for a 3-Step Guide to Smarter Long-Term Care Planning