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Reasons People Don’t Buy Long Term Care Insurance

Bob’s mother Alice*, a widow, was no longer able to live alone due to dementia. Up until six months ago, Alice had been in the home in which she had lived for 56 years. For the past three years, as her dementia had progressed, Bob hired home health aides to assist Alice with her daily needs; all paid out of her savings.

Eventually,  when it became clear that Alice would outlive her savings, she was left with two options, deplete her assets so as to qualify for Medicaid or rely on her children.

How Save Money On Long Term Care Insurance

The cost of long term care continues to rise. Considering the risk, it is likely that if long term care insurance were free everyone would get a policy. The peace of mind that coverage can offer is something most would welcome. However, the price tag of some policies can make owning one out of reach for most.

But there are ways to reduce the cost of long term care insurance making it an option for more Americans. By following some guidelines when buying and designing a policy, you may be surprised by the affordability.

Do I Need Long Term Care Insurance?

We’ll be the first to tell you that long term care insurance is not right for everyone. However, a plan to address the risk of long term care is something we do encourage all our readers and clients to develop; which may or may not include buying a policy.

To determine the best way to pay for long term care if you need it, you should consider several key issues including:

  • Finances.
  • Health and age.
  • Some intangibles unique to your situation.

Once you’ve considered the above, you will be in a better position to answer the question so many of our clients ask, “do I need long term care insurance?”

Cost of Long Term Care; 10 Most Expensive States in 2015

The cost of long term care has continued to rise leaving many Americans and their families in financial and emotional jeopardy due to their failure to prepare for the risk. In order to create your own long term care plan you will first need to answer the questions: 

  1. How much does care cost?
  2. How will you will pay if you need care?

The answer to the first question will not only depend on the type and length of care but also where you live. The cost for services varies state to state with some rates far above the national averages.

Find out if your state ranks among the top ten most expensive states for long term care.

The Cost Of Long Term Care In 2015; Top 10 Least Expensive States.

As a follow-up to last week’s post on the cost of care in 2015, let’s look the year’s ten least expensive long term care markets.

Our numbers are based on the 2015 annual study conducted by Genworth that examines the cost of long term care services nationwide including:

  • Adult day care
  • Licensed home care
  • Assisted living
  • Private room in a nursing home

Keep reading to find out if your state is included in the top ten least expensive states for long term care services.

The Cost Of Long Term Care In 2015

Those of you reading this blog are likely aware of the high cost of long term care. But did you know that as of 2015, the cost of a private room for one year in a nursing home was about the same as three years of tuition at a private college?

Genworth recently released its annual Cost of Care survey providing information you need to know to plan for long term care including:

  • The cost of long term care in 2015.
  • The percentage increase of service prices over 2014.
  • What you will pay in your state for care.
  • Projections regarding future costs.

Are You Too Young To Buy Long Term Care Insurance?

Over the years, our average client age has noticeably decreased. These days, it is not uncommon to receive a call from someone in the 30-45-year-old range interested in long term care insurance. Often these clients have had personal experience with a loved one needing care, or they simply see the coverage as a logical part of an overall financial strategy. Whatever the case, it is a positive sign to see long term care awareness increasing.

And while we always encourage planning for long term care regardless of age, the question of whether or not that should include purchasing a policy at a relatively young age is one that warrants careful consideration.

A Look At How Americans Are Planning For Long Term Care And Retirement.

Genworth recently released a study titled, Generational Planning that explores American’s views on retirement and aging.

Participants’ attitudes toward specific topics related to aging were examined including:

  • Health.
  • Retirement contributions.
  • Long term care.

The research and conclusions help explain why so few are adequately preparing for their future health care needs, including the need for long term care. 

The study uncovered some interesting findings and based on those findings, offered helpful solutions to the identified problems.

Women and long term care insurance; helping create peace of mind.

I’m terrified about becoming the best-dressed bag lady in Manhattan. I spend everything I take in; I don’t have a plan. If my paycheck stops, I could have nice stuff but nothing to show for it.

This is what a high-powered fashion executive told her financial planner during their initial meeting. Most of us probably cannot relate to the day-to-day life of a well-heeled New York fashionista. However, studies show her fear of outliving her money is an all too familiar concern, particularly for women. 

Long Term Care Planning; Is Long Term Care Insurance Right For You?

It’s an all too common story; adult children dealing with their parents’ long term care. The experience often leads those adult children to consider how they will pay for long term care for themselves should they end up needing it too.

Kay Anderson’s mother, Edith, passed away last year at age 96. Edith, like most Americans, assumed Medicare or Medicaid would pay for her long term care (LTC) needs. Unfortunately, that assumption is incorrect, and now her daughter, Kay, is dealing with the bills denied by Medicare.