For young people, buying long-term care insurance is just another insurance policy that is vying for their attention. Often times, they not only have to worry about day to day bills, but they also have to consider other insurance needs like:
- Health insurance
- Home and auto insurance
- Life insurance (if they have dependents counting on their income)
- Disability insurance
I think the biggest question people have is whether another insurance policy, like disability, already covers it. Long term car insurance is different from disability. It is different; think of it as gap insurance for what your health insurance doesn’t pay when you need extra care, such as in assisted living facilities. Fidelity gives an estimate of $225,000 to take care of medical costs while in retirement.
While LTC isn’t just for older people, many should consider it when thinking about retirement as they get up in age. Depending on their assets, the insurance can be crucial should something arise. If they need care and lack the cash on hand to pay out of pocket, this coverage could be the answer.
Looking at Long Term Care insurance
If someone decides taht now is the time to shop for a policy, there are a few things they need to compare with the policies they’re looking at to make sure they’re getting something valuable rather than a waste of their money.
- Eligibility Criteria: Make sure you’re completely aware of the criteria to receive coverage. Also find out how long you have to wait before the policy kicks in.
- Payout/Benefits Period: Some policies are for a few years, while others are much longer. Seek something reasonable for your circumstances.
- Payout Schedule: Know exactly what the policy pays for home care, nursing homes, and assisted living.
Thoughts on Insurance Needs
How are you doing with your insurance? Do you have adequate coverage? What could you be doing better? What seems to be going fine for you? I’d like to get your thoughts on long term car insurance and if it is a part of your financial plans.
Disclosure: Posts includes information sourced from Genworth Financial