Plan now for potential crisis in an unpredictable future

While many people recognize the importance of establishing a plan for

retirement, they often overlook one important element called Long

Term Care (LTC) Insurance.

All the best planning for a comfortable retirement can be lost

after a unexpected illness or accident. It’s estimated that 50% of

people will need some kind of long term care in their lifetime. Cost

for this care either in the home or at a residential facility is

estimated to triple in the coming decades. The biggest misconception

is that LTC is only for “old people.” People in there 30s and 40s

also have a great need to this protection.

Many of my clients often put off the decision of whether or not to

consider a policy. Some people figure that if they ever need care

they will have their kids take care of them. This is a good plan if

your kids are professionals in skilled nursing, physical therapy and

independently wealthy. Quality providers of care are well trained and

well compensated. Chances are your kids or even a spouse would not be

up to the job - a 24 hour job - that would require them to give up

their lives to take care of yours.

The other issue for some is whether to self-insure of not. This

too would be a good option if you knew when you where going to need

the care and your assets are considerable. Remember, once you need

care, you are now uninsurable for coverage. Coverage purchased now

can be used later utilizing discounted dollars. Even if you think you

could self-insure, a LTC policy could be a beneficial addition to

your insurance portfolio. A policy would help to preserve you assets

for you and your heirs.

A good policy to look for would be from an A rated company that

has a proven track record. Beware of companies with exceptionally low

rates. The last thing you want is for a company to raise rates by 20

or 30% down the road. The daily benefit should represent the cost of

care in today’s dollars and offer an inflation rider, preferably a

compound inflation rider. However, a minimum policy is better than no

policy at all. Be sure the policy you choose provides the same

coverage for facility care and in-home care. The best way to stay out

of a nursing home is to have a policy that will provide in-home care.

The bottom line is that most everyone can benefit from some Long

Term Protection. Thoroughly check out the different features and

benefits of Long Term Care before you make the decision as to whether

or not to include this coverage in your insurance portfolio.

Article submitted by Steven Hill. He has been in the insurance

industry for 11 years. He is a State Farm Agent in Costa Mesa. You

can reach him at (949) 646-9393.