Ensuring Your Elderly Family Member's Long-Term Care Insurance is Sufficient

Jan 11, 2021

Up to 70% of Americans turning 65 will need some type of long-term care in their future. Depending on individual family circumstances and health requirements, this care could include such things as making modifications to the home to make it more accessible, hiring in-home healthcare nurses, attending adult daycare, or even moving into a nursing home or other long-term care facility. Less than 30% of older adults set money aside for long-term care, assuming that it will either be covered by their existing personal insurance or health insurance company only to find themselves with a $300,000 bill. Though it is not for everyone, long-term care insurance could be the answer to ensuring that your loved ones get the help they need. 


Who Needs Long-Term Care Insurance?


Though the services covered by long-term care insurance are usually not needed until age 65 or later, this can often be too late to get the right coverage at a price you can afford. Those on either end of the financial spectrum may be able to handle their long-term care needs without long-term care insurance: impoverished seniors with little to no assets could qualify for Medicaid, and those with a lot of savings may be able to pay out-of-pocket without a problem. About one-third of adults will not need long-term care, and if you own a home or other assets, you may be comfortable taking a gamble and selling them, especially if they have lived particularly healthy lives and have a lot of family around. Those who have a family history or high risk of developing chronic illness or dementia may be less likely to roll the dice. Regardless, the vast majority of Americans who find themselves unable to manage the basic Activities of Daily Living (ADLs), will need some sort of plan. 


Shopping For Long-Term Care Insurance


For a very long time, there was only one type of long-term care insurance available. Traditional long-term care insurance policies are the cheapest, mostly because they come with the most limitations, including waiting periods before the policy kicks in and caps on both daily and yearly expenses. As customers became more and more dissatisfied with these policies, hybrid policies developed that draw from large whole life insurance policies for long-term care. Though these policies will have higher premiums, your investment will not be lost entirely if you end up being in the lucky minority to not require long-term care or have unpaid family caregivers available to assist you with ADLs. Since the coverage is tied to your personal insurance policy, any money not used will be willed to your heirs upon your passing. Like most types of personal insurance policies, you will get the lowest premiums if you start early. Individuals who purchase their long-term care insurance policies at age 65 pay premiums of up to 10% higher than they would have had just a year prior. Bundling your insurance purchase with that of your spouse may also be advantageous as many companies offer up to 30 percent savings to couples. 


Find Long-Term Care Insurance In Illinois


Though there are many ways to save on your personal insurance needs, a professional insurance agent will be able to find you the very best deals. If you or a senior you love needs help planning for the future, Oliver And Associates can be of assistance. Get a free quote today!

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