Long-term care insurance: what to do and what to avoid

Long-term care insurance: what to do and what to avoid:

Funding and planning for long-term care require reflection and education to develop the best policy for you and your financial situation. It is easy to get lost and be paralyzed in "inaction". Here are some key points about what to do or not do.

Buy too much coverage:

It is important to buy long-term care insurance without excessive insurance. Review your finances and determine how much you can easily pay for long-term care and work with your long-term care insurance policy. Buying long-term care insurance can be compared to buying a car. A Ford will take you to the same place as a Mercedes, but it will cost much less. Having long-term care insurance is better than not having long-term care insurance.

Waiting too long:

You will not save money until you buy long-term care insurance at a later date. The cost to you today is lower than ever. As you get older, the rates go up.

Protection against inflation:

You should seriously consider compound protection against inflation of 6%, especially if you are less than 80 years old. It costs more but adds the value of your long-term care insurance policy.

A good long-term care plan:

You need to know your options in case you need long-term care. Do you have the assets to cover the expenses and still live the lifestyle you want? Where do you want to receive attention? How long can you liquidate your assets? Will you lose money if you liquidate? What are the tax consequences? Do we have enough income to live?

Impact on the family:

What happens when a spouse needs attention? Will this affect the other spouse's work? Can the family provide the necessary care? Can children help? How will this affect your work and your families?

State health insurance:

Many believe that Medicare will cover all costs of long-term care. That is not true. It covers very limited costs that meet Medicare criteria.

Comparable and competitive quotes:

Some companies are more competitive with respect to their age or health status. The long-term care insurance quotes must be compared with at least three of the largest companies. Different companies have unique "zones of predilection" according to age, marital status/couple and health.

Specialist in long-term care insurance:

Consult with a long-term care insurance specialist, an independent agent who stays informed about the new plans that are being marketed. A long-term care specialist can help you compare different diets by comparing apples to apples.

Shopping by price:

Getting the lowest price for a long-term care insurance policy is not the best way to plan. The cheapest price may or may not include the options you will need when you are ready to use your plan.

Main carriers:

When you obtain long-term care insurance quotes from three different companies, it is important to verify the company's financial ratings. You must search for companies with at least one note.

Long-term care expenses:

You must be informed of the actual cost of long-term care (home care, assisted living, long-term care facilities) in your area. If you live in an expensive state, you must adjust the benefits of your long-term care insurance according to the costs in your area. If you plan to retire to a less expensive area, you should also consider this. Different considerations should be taken if you plan to live abroad.