Long Term Care (LTC) is probably the most needed yet least purchased insurance. Why the most needed? You’ll see below. Why the least purchased?Mainly because it’s expensive and if you don’t use it, then all your premiums were paid for nothing. But there is a better way to buy LTC where it’s affordable and you can benefit from the policy in any 1 of 3 ways – so you will always get a benefit whether you end up needing LTC or not.
- Use it for long term care
- Use it as life insurance
- Use the cash reserves for anything you want
What is LTC?
There are 6 “Activities of Daily Living” (scroll down). If you can’t do any 2 of these activities, that will generally trigger a LTC claim. OR… a cognitive issue can trigger a LTC claim all by itself.
Many people think LTC means that you’re in a nursing home. But most people would rather stay in their own home, and that’s OK – LTC insurance will pay for care at home! But even home care can get expensive – $4242/mo according to Genworth Cost of Care Survey. That’s 50K per year!
Why get LTC?
Look at the stats below. This is why I believe it’s the most needed insurance – 1 in 2 people will need it. The good news is that we’re living longer due to advances in medicine. But living longer means that our parts may begin to wear out. Example: a person with arthritis in their hands may have trouble preparing meals, dressing, etc. There’s a possible LTC claim just because of arthritis.
We all know someone who has been a caregiver. Without long-term care, a family member or friend must become the caregiver, and that will undoubtedly change that person’s schedule forever… not to mention their entire life plan. They may have to give up their job or move their family. And caregiving can be mentally stressful and physically demanding. Caregivers can burn out and often develop their own health issues as a result. Most of us don’t want to think about the possibility of needing LTC, but the thought of needing LTC and not having the ability to pay for it is far worse!
ACTIVITIES OF DAILY LIVING:
Toileting (being able to get on and off the toilet and perform personal hygiene functions)
Transferring (being able to get in and out of bed or a chair without assistance)
Maintaining continence (being able to control bladder and bowel functions)
Give me a call (no obligation & there is never a charge for my services)… Neil (949) 300-3022. Or click here to schedule a phone appointment. I’m glad to answer your questions and provide quotes if you’d like one.
Author: Neil Steinman
Neil Steinman is the principal of Orange County Health & Life Insurance in Orange County, CA – and has been serving the needs of California residents for nearly 20 years.