What Is A Good Age To Start Considering Long-Term Insurance?
Posted by Donald J. Medeiros Insurance Agency on
Ideally, between the ages of 50 and 65.
This age group begins to think realistically about retirement and is actively planning for that golden day. Usually, they will have the other financial requirements behind them at that point such as a mortgage, college tuition and the like. So, planning for the financial impact of retirement is the next logical choice. With that, it is prudent to take into consideration the likelihood of falling sick when you are retired. This is where Long-Term Care Insurance is a wise choice.
There are some misconceptions when it comes to Long-Term Care Insurance that we are going to cover. The main one is that it is too expensive; the second is that there is no option for At-Home Care and then lastly, that you are too young to purchase it. None of which is true.
Let’s talk about its’ cost. If you have a yearly premium of say $3,000, that amount could easily be absorbed in just a few short weeks in a long-term care facility. Imagine having to pay that expense out-of-pocket when you are retired? According to the American Association for Long-Term Care Insurance, the average annual premium for a 50-year old purchasing a typical policy will pay a daily $200 benefit for 3 years with a 3% compound inflation option is $2,235 annually, that’s right annually. The average annual cost for an Assisted Living Facility with a 1 bedroom in Massachusetts is $55,050! You can click on this link to view the average cost of Assisted Living for your state.
When it comes to Long-Term Care Insurance it is very customizable. The big benefit is that you can receive care in the comfort of your own home, which most would prefer. But, there are other choices and one is Assisted Living Care which has the added benefit that is close to the comfort of home because it allows for independent living and privacy with the additional services that are included such as housekeeping & meals. The least desirable but usually a necessary option, is a nursing facility where there is a medical staff onsite to take care of patients that are in need of extensive round the clock care.
Long-Term Care Insurance is another pot of money that consumers can use to help retire and age in the lifestyle that they desire. It can be applied towards the cost of care, however, there are some instances it may not cover all costs. So, the earlier you start to contribute, the larger the pot of money will be. The providers of Long-Term Care Insurance look at the risk, which is the likelihood of you falling sick, so the younger and healthier you are, the cheaper the insurance will be and the less you’ll pay in premiums. Premiums are fixed like Life Insurance so they cannot cancel or increase your rate, unless there is a general rate increase across the board.
There is quite a bit of information to think about when considering Long-Term Care Insurance. But, there one thing that is for sure, that we will all grow old. If you are able to stay healthy and live independently in your own home to the end of your days, you will be one of the very few who are very lucky to be able to do that.
Here at Donald J. Medeiros Insurance Agency our goal is to try to help our viewers by suggesting solutions for all insurance needs. By no means can we address each reader’s specific concerns in every incident. So, we strongly advise you to check with an insurance representative to address your specific needs. However, you can also contact us for any questions or concerns and we will be happy to help you. We can offer a complete line of personal & commercial insurance products for all of Massachusetts, Rhode Island and New Hampshire.