There are many myths and facts surrounding Long Term Care Insurance. Sometimes (especially for industry outsiders), it’s hard to find the grey line. Some common myths exist because people do not realize that times have changed. The country’s population is aging, and the cost of health care is rising. Due to better health services, we are also living longer than we used to do, which means that more of us will need Long Term Care at one point or the other in our lives.
According to Smart Money, it’ll cost you about $3.5million to live up to 100 years. Below let’s take a look at some of the most common myths and facts facing the Long Term Care Insurance domain.
Long Term Care Myths: the kids will care for me
Not so long ago, it was common for families to care for their aging members. That meant at least one of your children got left behind to look after you after old age set in. But times have changed. Society has is now more complex. Your children travel to different cities (sometimes even countries) looking for the opportunities. In their families, both the wife and husband are working. This means that they have lesser time to care for elderly Mom and Dad.
LTC Myths: Medicaid will pay for my care
There’s a common misconception that Medicaid will pay for Long Term Care services. This is not the case though. Medicaid only becomes a primary health insurance cover after you’re 65 years old, or after you become disabled. It was never designed to clear LTC expenses. At best, Medicare will only clear 20 days for 100 percentage coverage. Medicare supplement will take care of some other 80 days.
Medicaid is the federal government’s welfare arrangement to take care of your LTC and medical expenses AFTER you’ve depleted your finances and assets. You do not want to follow this path for your Long Term Care needs.
LTC Myths: I’m too still so young to subscribe
There are a large number of people who are still inclined to thinking that Long Term Care insurance is a thing for ‘old people’. The fact is that you may need to use Long Term Care at any age. As a matter of fact, 40 percent of policy holders who need LTC are aged 18 – 64 years. For instance, think about Michael J. Fox and Christopher Reeves. These are tragic cases of individuals who needed LTC before they even hit the age of 65. The need for LTC can happen at any time, so it’s not just a preserve for seniors.
LTC Myths: I’ll self-insure
It’s common that people think they’ll use their own assets to self-insure for Long Term Care. There’s nothing wrong with thinking this way, but it often doesn’t work that way. Unless you’ve accumulated assets worth more than 5 million dollars, you probably should think twice (even thrice) before you follow the self-insurance route. Today, Long Term Care is already very expenses. You have no idea how much more expensive it’ll be by the time you need it in the future. Plus if you self-insure, there are tax implications. After all, the stock market crash of 2008 isn’t too far back to forget yet.
Long Term Care Myths: LTC Care is too damn expensive
Not necessarily. Long Term Care coverage gets more costly with age. So the lesser your age when you buy, the lesser you pay in premiums. It makes a lot of sense to plan and buy a package while you’re still young and healthy. This way, you end up paying lesser over the long run. Keep in mind that the cost of LTC is determined by a number of factors (we just gave the example of age). More so, a qualified professional can help you find the right balance between too much and too little.
Some of the leading providers of Long Term Care Insurance include Genworth Financial, Mass Mutual, Transamerica, John Hancock, and New York Life. All of these companies have very competitive rates. LTC Key can provide you with comparative quotes so you may choose an LTC insurance policy that best suits your needs.