There is still an ongoing debate regarding the answer to this question, “should I buy long term care insurance even if I can afford care?”
Some would claim that they have more than enough to cover their future long term care needs and therefore they don’t need to get coverage for long term care.
But what is adequate today considering that long term care costs pose a significant threat most people’s retirement plan?
To help educate Americans to address this issue, we have compiled five blog posts that will enlighten you why you’re better off opting to buy a long term care insurance policy.
Requirements of People Who Should Buy Long Term Care Insurance
Mike Piper of Obliviousinvestor.com came up with a list of people who will greatly benefit in buying a policy and these are the people who meet all of these requirements:
- You can afford to buy long term care insurance.
- It’s challenging to pay long term care out-of-the-pocket.
- You cannot rely on Medicaid because you have sufficient assets that make you ineligible for long term care coverage.
- The pros of long term care insurance weigh more to you than its cons.
To help out with your decision-making, Mike also shared helpful statistics based on the 2016 report by the National Association of Insurance Commissioners and Morningstar’s 75 Must-Know Statistics About Long-Term Care.
Buying Long Term Care Insurance Could Save Your Retirement
According to Chris Hogan of ChrisHogan360.com, nobody likes thinking and talking about long term care insurance. People would quickly change the subject to something that is more uplifting and easier to think about. He obviously has a point because deciding whether to buy long term care insurance or not is one of the hardest decisions you’ll make in your life time.
Chris believes that people should purchase long term care insurance policy because of the devastating cost of long term care. According to him, there is a big chance you could blow through your savings quickly even if you have a big nest egg. Here are the average long term care costs in 2017:
Long term care insurance can protect your wealth and as well as your loved ones from the expensive cost of care.
Download our free ebook Long Term Care Insurance: Definition, Costs, and Policy Details to learn more about how the policy works.
Long Term Care Insurance is 1 of 8 Policies You Can’t Go Without
Dave Ramsey describes insurance as a life jacket. It’s a nuisance if you don’t need it, but you’ll be grateful that you have it when the need arises. This can save you from drowning in debt later on.
Since insurance is a bit complicated and uncomfortable to talk about, DaveRamsey.com created a list of insurance policies that you can’t go without and one of them is long term care insurance.
Long term care insurance can protect your nest egg from long term care expenses, which are known to be very expensive. Dave also advised purchasing no later than age 60 because of factors like age, health and family history matter on your long term care insurance premiums.
A Reality Check on Long Term Care Insurance Coverage
Deborah Nason’s article “Considering long-term care coverage? Here’s a reality check,” gives us the current state of long term care insurance. Here are the key takeaways from what she has written:
According to Scott J. Witt, a fee-only insurance advisor with Witt Actuarial Services, “In my experience, the vast majority of consumers come away from this process with a false sense of satisfaction and confidence that they have adequately covered this risk, when in reality they could still be wiped out by a catastrophic long-term care episode.”
By the time clients buy a long term care insurance policy, they have skimped on important areas to save on premiums like inflation protection, decreasing their benefit period, extending their elimination period and decreasing their monthly benefit.
In the long run, they might not have enough to cover their care expenses.
Long Term Care Costs Are Vital in Retirement Planning
According to, “Retirement Planning should include long-term care costs,” There are many Americans who have developed a blind spot when planning for retirement and exclude long term care costs. Despite the fact that a lot of Americans will need long term care around 70% of those who are 65 years old and above according to U.S Department of Health and Human Services (HHS), there are only few planning for it.
Based on a report by the Bipartisan Policy Center Report, more than 50% of Americans end up paying for long term care expenses out-of-the-pocket. This figure increases to 70% for those who are receiving care at home. In the end, Americans spend all their assets and end up relying on Medicaid, which is responsible for covering 40% of long term care services until 2030.
By having a long term care insurance plan, you can protect your assets and your loved ones. Also, you will avoid becoming a burden to Medicaid, which is designed to provide financial aid to Americans who can’t really afford long term care.
Should I Buy Long Term Care Insurance Even If I Can Afford Care?
The answer to this question is, yes.
Buy long term care insurance if you afford it to protect your retirement savings and loved ones from high long term care expenses. It makes sense to buy a policy if you have a portfolio of $1 to $4 million. Make sure to buy a policy that addresses your risk to avoid paying out-of-the-pocket later on.
Compare long term care insurance policies online now to find an affordable policy that will cover all your future long term care needs.