Long-Term Care Insurance

Long-term Care Insurance covers assistance with daily living for those who are aging or unable to take care of themselves. It is  common for Long-term Care to include assistance with daily tasks like; dressing, bathing, eating, using the bathroom, breathing, errands, recreation, and a host of other things that may help a friend or loved one to live with the comforts of home and dignity. LTC can be provided at home, in a retirement community, assisted living facility, or other accomodations.

Watch this video to get additional information about the types of things you need to be aware of when purchasing Long-Term Care Insurance.

Two Schools of Thought:

Those who say we must plan for Long-term Care because our retired population is living longer and growing. According to a study done in 2013 by John Hancock, the average cost for a care facility of retirement community is $94,000 a year ($7833/mo.). They believe it is worth a reduced premium today to keep up with the growing costs of providing part or full-time care.

There other group is encouraging the masses to self-insure. They site things like being able to pay later when our personal debt is paid-off (not the case for over 30% of Americans over 70 years old). They site out of control rate increases and cost of living adjustments that have raised the premiums of even those who had planned ahead! However, their most compelling argument for self insuring comes from a 2015 Wall Street Journal article siting a study published by The Center for Retirement Research at Boston College where they discovered the average stay for retirees is only 100 days (which has been refuted by many other studies). Nonetheless, based on this study, they contend most would spend less than $100,000 for thisw care and assistance.  

Long-Term Care Insurance

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There are as many ways to Customize a Long-term Care Plan as there are those who need care. While on a cruise I met a 92 year old lady who was spending her time how she wanted to spend it. Her children we unable to take care of her full-time and wanted to move her into a retirement community. She decided to go from cruise to cruise all year round. After 14 years and too many cruises to count she told me the food, medical care and social interaction was fantastic. She was doing it her way, and fortunately it was working out!