Pay off student loans, day-to-day expenses, have enough money to cover rent—these are the major expenses that Millennials worry about when it comes to finances. With all of the demands and necessities needed to stay afloat in today’s world, who can blame them, right? However, there is one good investment that many of the younger generations often neglect: long term care coverage.
The definition of long term care is a range of services that assist a person in everyday tasks referred to as the Activities of Daily Living. And contrary to what many believe, approximately 3.7 million younger individuals require long term care services because of accidents, conditions, and illnesses. So investing in coverage provides individuals with a strong layer of protection despite the financial responsibility it entails. Furthermore, various agencies are available to lend a helping hand to people in paying for long term care.
Every individual will face the risk of needing long term care when they grow older. Approximately 70% of individuals turning 65 need long-term care in the following years. And while that may seem like a long way to go, so many people find themselves blindsided with the need after delaying it for so long. At present, one-third of Americans in their 40s have done no planning for long term care at all, and 4 out of 10 mistakenly rely on Medicare for coverage. Many look to long term care insurance to secure their future, and 90 percent are happy with their current plans.
But even with those numbers, the younger generations still tend to stay away from anything that has to do with long term care. Why worry about it now, right? Why not postpone for a few more decades? Here’s an ltc guide that will tell you why.
1. The early bird pays less in the long run.
Like most things, investing in ltc insurance early will benefit you in the long haul. Yes, chances are you will not need coverage for decades, but one inevitable factor in all of this is that you will age. So why not use those long years to your advantage? By locking in a good plan, you will be going easy on your bank account. Additionally, the younger applicants usually have lower long term care insurance premiums, so it is a win-win.
TIP: You can always go for go for basic plans first, and then add to it later. This way, you can just bump up your policy to increase the benefits when you are more financially able.
Read Next: 5 Reasons Why You Shouldn’t Delay Getting LTC Insurance
2. Health is wealth, insurance-wise.
One significant factor that ltc companies consider in granting a long term care insurance policy is the person’s health. Applying is the easiest when you are young and healthy. Additionally, insurers also provide locked-in discounts for individuals who apply at an early age.
Your health naturally declines when you grow older. When this happens, you begin to feel aches here and there, and trips to the doctor become more frequent. Usually, this is when people start worrying about long term care coverage: when the need is already present. However, this is when things get tricky. Agencies take the status of the candidate’s health in giving out policies. The longer you wait, the higher the chance is of getting declined.
3. Time’s a-changing, and it’s not for the good.
Another point to consider is that the lifestyle of most of the people nowadays. The lack of sleep, consumption of unhealthy food, the long hours at work—these are among the staples in the lives of the current generations. This type of living has called for a more immediate action when it comes to long term care. The demands and the stresses of today’s world are so great that illnesses previously associated with old age are now creeping into the younger age brackets. The reality now is that people in their 30s could easily suffer from a stroke and even a heart attack. The illnesses that you would normally expect in your 50s are now happening to your 20-year old colleagues.
The Bottom-line
We all know that growing old is inevitable. People age continuously, though we barely notice it amidst all the deadlines and day-to-day activities we go through. More often than not, the younger generations get lulled into the idea that they still have decades before they start worrying about this kind of future. Like most things, it is often a little late when they begin to realize the necessity.
Truthfully, there is no right age to start thinking about coverage for long term care. No one knows what will happen or when it is going to happen. There is no handbook that dictates what you should do or when you should do it. But this makes it all the more necessary to plan ahead for instances that could happen tomorrow or decades from now.