Candidates for Long Term Care Insurance

Even though long term care insurance is an important investment, experts on this field say not everyone can qualify to buy this type of product as it costs a lot of money. So who should buy long term care insurance? Are they the wealthy people or perhaps those expecting a big inheritance in the next five years?

One thing that’s for sure is that the rich can afford to self-insure in case they would end up needing long term care (LTC). Meanwhile, the poor have Medicaid to look forward to since this federal health insurance program is primarily intended for them especially those individuals with an income that is below the poverty line.

So that leaves the middle class with no financial support should the time come that they become feeble and begin to require assistance with their activities of daily living (ADL) which basically include eating, bathing, dressing, toileting, management of continence, and transferring.

The cost of care is considered unaffordable by most Americans and the truth is, only a handful of them are capable of paying for it out-of-pocket. Majority of the population receiving LTC is relying on Medicaid, and the fact of the matter is that 40% of the country’s total spending on LTC can be attributed to this health program.

Unfortunately, Medicaid does not promise outstanding LTC because it has to work around a fixed budget. Simply put, you have to make do with whatever it is capable of providing you. If you really want quality health care in the future, you need to come up with a well thought out plan.

Who Should Buy Long Term Care Insurance?

Does your health records reveal that you will need serious care in the future? If so, then there’s no doubt that you are one of those people who should consider buying an LTCI policy.

You can spare yourself from paying a high annual premium if you start putting together your plan today. Aside from this fact, having a plan will also protect your family from impoverishment.

LTC costs have always been linked to impoverishment because research has shown that so many families had lost their hard earned money, homes and other properties to the high cost of care. It’s not a good idea to depend on your nest egg for your LTC expenses because no one can really tell the extent of care that he or she will need in the future. An estimate can only be done.

Anyone who is 50 years old or younger, healthy, and active at work is strongly encouraged to purchase an LTCI policy as this will protect his or her assets from being wiped out by LTC costs, which are projected to increase four times more in 2030.

Only those who buy their policies at a later age are at risk of spending $2,000, $7,000 or even $9,000 for the annual premium of their coverage. Young buyers should not be threatened by these figures because they can manage to clinch a policy that will cost less than $500 annually.

LTC costs will not go down anytime soon, so take time to talk with your family and find out who should buy long term care insurance apart from yourself.