There are many thoughts that go through the heads of people as they are approaching retirement or even when they begin planning for retirement well before retirement age. Besides, what is the actual age of retirement today? As inflation increases and living expenses are increasing, more and more people are just plain forced to work longer.
The good news is that we are living longer. Hopefully, you will live a long and prosperous life and health or money issues won’t affect your golden years. If long-term care is needed due to an injury, illness or even a cognitive disorder, long-term care insurance is one of the ways you can deal with the unpredictable long-term care costs which are very expensive. But to be prepared, you should consider how to make long-term care insurance work to your advantage.
Fortunately we now have some financial tools to help make the golden years more comfortable emotionally, physically and financially. A very viable solution may be long-term care insurance (LTCi). Long-term care insurance used to be thought of as “nursing home” insurance, but that is no longer true. Seek the counsel of a Long-Term Care Specialist who has special education and training (LTCP, CLTC) in long-term care financing and planning.
You will save hours and hours of research by just consulting with an independent agent who specializes in long-term care insurance.
Here are options you should look at and discuss with your Long-Term Care Specialist when considering long-term care insurance.
Activities of Daily Living: Most insurance policies respond to issues that require assistance with the Activities of Daily Living (ADLs). These include dressing, bathing, transferring, toileting, eating and continence as well as cognitive ability.
Companies Ratings: Financial strength as rated by A.M. Best Co., Moody’s and Standard and Poor’s
Daily/Monthly Benefit: The amount of money one will receive on a daily or monthly basis when a claim is made.
Benefit Period: The length of time the daily or monthly benefit will be pay usually in years.
Elimination Period: The number of days you are responsible for your own before the insurance company pays often referred to as a deductible.
Inflation Protection: This is a hedge against increased cost of care in the future.
Shared Care Rider: Allows a couple/partners to share each others benefits.
Spousal/Partner Discount: Discounts for married couples or partners
Health discount: Discount is awarded for above average health.
Home Health Care Rider: Offers a zero day elimination for care provided in the home
Guaranteed Renewable: When premiums are paid on time, one cannot be cancelled for changes in your health.
30-Day Free Look: When policy is issued, you have 30 days to change any of the benefits or options or to decline coverage.
Potential Income Tax Benefits: Business owner can deduct some or all of the premiums.
These are some of the options to consider when evaluating long-term care insurance plans, Long-term care insurance is a little more complicated than life insurance or health insurance, so it’s best to consult with a Long-Term Care Specialist. A long-term care specialist will educate you in long-term care planning. He will determine if it makes sense financially and then together you will design a plan that fits your own particular situation.