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Preserving Your Assets
Most of us look forward to a long and active life after retirement. But with increasing age comes the increasing chance of a prolonged illness or disability that could leave you unable to care for yourself over an extended period of time.
Long term care insurance can provide all the assistance you might ever need, while relieving your family from financial and emotional burdens.
- Who will take care of you?
- Do you need Long-Term Care Insurance?
- Can you afford to pay the bills yourself?
- What is Long-Term Care Insurance?
- Tailor your coverage to suit you?
- What to look for in Long-Term Care Insurance?
- A promise that will be kept
Who will take care of you?
Think about it. This is a question we all have - regardless of age. It is a particular concern as we get older. Remember, you don't have to be old to be a victim of a serious accident or a disease that leaves you permanently disabled.
True, if you are still young enough to have the support of a loving family, you may be able to count on them for your full-time care. However, this could put a large financial strain on your family. Will you be one of the lucky few to have a family with the time and ability to care for you?
If you live alone what is your alternative? Medical insurance alone will not pay for long-term or full-time care when you become disabled. And Medicare will only pay benefits for awhile only when it is for skilled care, and only when it immediately follows hospitalization.
|
Age |
Monthly Rate as Low As* |
Cost Per Day |
|
40 |
$48.37 |
$1.61 |
|
45 |
$53.25 |
$1.77 |
|
50 |
$64.21 |
$2.14 |
|
55 |
$80.22 |
$2.67 |
|
60 |
$100.27 |
$3.34 |
|
65 |
$151.91 |
$5.06 |
*Rates based on a preferred non-smoker, $150 daily benefit, 3-year benefit period, home and community-based care, 90-day elimination period, and 5% simple inflation.
Do you need Long-Term Care Insurance?
Chances are 60 out of 100 that you will need long-term care. Chances are 7 out of 100 that you will have an auto accident sometime in your life.
Can you afford to pay the bills yourself?
Consider this: If you become disabled, ill or injured so that long-term care is required, it won't be cheap. Nursing homes can cost over $87,000 a year! Even professional care at home can cost around $30,000. And it's not getting any cheaper - especially in Hawaii, where a severe shortage of nursing homes is driving prices higher each and every year.
Ask yourself: if long-term care is so expensive, how long will your assets and investments last if you become disabled?
Or, if you are young or middle-aged and have elderly parents, ask yourself the same question: how will you be able to pay for their care, when you already have yourself and your family to care for?
What is Long-Term Care Insurance?
In a nutshell, it is a protection plan that pays you a set amount when you can no longer live independently. It can help pay your nursing home costs, your assisted living costs - even your costs when you are disabled and confined to your home. Whenever you can't perform some of the essential activities of daily living (ADLs) - eating, bathing, getting out of bed, going to the bathroom, walking, dressing yourself, etc. - your long-term care insurance will cover the cost of caring for you.
It pays no matter what your age: a 30-year old with a permanent spinal injury, or an 85-year old unable to perform simple daily functions such as eating or dressing.
Long-term care insurance gives you peace of mind. And it protects your investments and your estate you've worked so hard to accumulate.
Long-term care insurance is a relatively new form of protection. As people live longer, it is more important than ever. Under federal law enacted in 1996, premiums may be tax deductible and benefits tax free if you own a tax qualified long-term care policy. There are many types of long-term care policies available.
You can tailor your coverage to suit you!
Long-term care insurance is not a one-size-fits-all arrangement. You can decide which coverage you need - and where you'll need it - based on your family situation. You can structure a plan that covers any or all of these types of care: Nursing Home and Assisted Living, Home Care, Professional Home and Community Care, or Total Home Care.
What's more, your coverage doesn't have to be all-or-nothing-at-all. Your benefits can kick in when your require substantial assistance with as little as two out of the six activities of daily living (ADLs).
What to look for in Long-Term Care Insurance
There are many different kinds of policies available. And costs can vary among policies, and among insurance companies offering the same type of coverage. For the best peace of mind, look for these features in a long-term care policy:
- Can the premium costs remain the same from year to year, regardless of your age?
- Do you have inflation protection as the cost of care rises?
- Will the conditions to qualify for your insurance benefits be fair and reasonable? For example:
- Will your qualification for benefits be based on your disability (your inability to care for yourself), rather than on your specific disease or physical condition?
- Will the insurance company forgive (waive) your premium payments while you are disabled and drawing benefits?
- Can you and your spouse share in the benefits you each are guaranteed, in case one of you needs more (and longer) care?
A promise that will be kept
With long-term care insurance, you can rest easy. Your policy can't be canceled (except for nonpayment of premiums), and your premium cost can remain level throughout the years. But most important:
- You may not need to deplete your life savings to care for yourself.
- You may be able to maintain your independence.
- You may not be forced to rely on government welfare programs to survive.
- Your family and loved ones may not have to sacrifice their assets and savings to care for you.
- You will be able to preserve your assets and pass them on to our heirs.
- You may be able to choose the location for your care.
