Long-term care insurance is designed to cover the cost of care when one needs partial or full-time care and is incapable of carrying out two or more daily living activities without assistance. These include the ability to eat, defecate, pass urine, bathe, dress, or move. Without long-term care insurance, you are at the risk of exhausting your built-up savings and retirement income. Here are the top 5 reasons you should get long-term care insurance.
1. Maintain your independence and dignity
Obtaining long-term care insurance will provide you with peace of mind. As you age, you may be wary of how much care you need or who you can lean on for support. According to the US Department of Health and Human Services, approximately 70% of individuals aged 65+ will need long-term care services. With long-term care insurance, you will not have to worry about who will care for you, where you will receive care, or how you will pay for these expenses. Additionally, many long-term care insurance plans can be bundled with life insurance. This means that you will have the extra benefit of providing protection and care not only for yourself but also for your family.
2. Relieve pressure on your family
As mentioned earlier, it can be burdensome to assume that a family member will provide care for you as you grow older. Although many family members may be willing to offer care and take you in, it will be hard for them to provide full-time or even partial care with busy work schedules and other familial responsibilities. It can also be financially difficult for them to keep up with the care needed. Many members of your family may not be able to take on such a sacrifice. This is particularly true if the individual you are thinking of leaning on is a spouse facing their own aging issues.
3. Protect your retirement and income assets
Many individuals think that Medicare or their own health insurance will help cover long-term care expenses. However, Medicare only covers up to 100 days of long-term care, if certain conditions are met. Private health insurance also does not cover long-term care; it only covers doctor and hospital invoices. If you were planning to rely on either of these options, you would have to pay for your own care out-of-pocket. This means that you would be spending parts of your retirement fund and hard-earned savings, which would make it difficult to provide financial security for your family in the long run.
4. Decide how and where you receive care
Long-term care insurance offers many types of plans, depending on your current situation and goals. These plans include traditional and hybrid long-term care insurance policies. Each plan gives you the freedom to choose when and where to receive care. With long-term care insurance, you will be able to choose where you want to receive support from your caregiver – whether it be from your home, in a community facility, or hospital. This flexibility allows you to receive care from wherever you are most comfortable.
5. May come with life insurance protection
Some of the most popular many long-term care insurance policies consist of hybrid plans that package long-term care with life insurance coverage. As mentioned earlier, hybrid policies give you the assurance that all your long-term care needs are tended to. Not only that but these policies also allow for increased protection for your family for when you pass away. Purchasing hybrid long-term care insurance can also save you money because instead of buying two separate policies, you get the benefit of both in one.
Key Takeaways
In today’s society, long-term care insurance is becoming more and more important for those who are aging. Because there is such a wide assortment of long-term care policies, make sure to consult with a licensed agent or insurance company that can help you find the best policy for you.