3 Surprising Benefits of Long Term Care Insurance

Perhaps, one of the biggest questions on a soon-to-be retiree’s mind is this: should I buy long term care insurance? It is no secret that care costs are expensive in the United States, and so many individuals are living longer than they anticipated. This entails more costs to tackle on an already limited income.

Admittedly, these policies can cost a pretty penny, especially if not planned properly. However, proper preparation can remedy that dilemma, and the advantages outweigh the disadvantages. Having a safety net that funds your care and simultaneously keeps your family members, assets, and savings intact while you receive care is the best situation anyone could hope for.

To understand the importance of having long term care insurance up your sleeve, here are three benefits that you might have missed:

1. Long Term Care Insurance Helps You Save More Money After Inflation

Some people ignore long term care insurance because it is too costly. Subsequently, they find it difficult to manage unaffordable long term care services after rate hikes. The good news is that enrolling for insurance can help you sustain long term care even after inflation.

When you apply for a policy, you may receive an offer for inflation protection. Bear in mind that many group long term care insurance policies do not offer automatic inflation protection, so double-check with your agent if the policy being offered has it.

Inflation protection, as its name suggests, allows your policies to catch up with the growing care service rates. With a 5% compound inflation protection, your $270,000 worth of funds becomes $730,000 after two decades.

If you cannot sustain 5% compound inflation protection, you may choose either 3% compound inflation protection or 5% simple inflation protection. Older policyholders are advised to select simple inflation protection.

2. Long Term Care Insurance Gives You More than Just Skilled Care

One misconception about long term care insurance is that it only covers the costs of care received at a nursing facility. As 77% of people age 40 and older prefer to receive care at home, you can easily see why the there is a lack of interest in long term care insurance.

However, insurance policies for long term care offer so much more than that. You can reside in a facility of your choice — whether it is an assisted living facility or board and care home. In fact, many insurance carriers provide in-home coverage to their policyholders. These may include coverage for a visiting or a live-in caregiver or a private duty nurse, so be sure to check with your insurance agent.

3. Long Term Care Insurance Provides Peace of Mind

Older individuals have cited outliving their savings as one of their top retirement fears, and it only takes one look at the costs of long term care services to understand how easily this can become a reality.

This is one of the situations that long term care coverage strives to avoid. Having a policy provides you the peace of mind in knowing that the care that you need is covered. Moreover, you get to enjoy growing older independently.

Additional Thoughts

A good policy is largely dependent on the planning that went into it. This is why we encourage you to be as involved and informed as you possibly can. Research about the different aspects and ask the right individuals when you have questions. More importantly, do not dive into the first plan offered to you. Request for long term care insurance quotes from different providers. This way, you get to have an overview of the available options before deciding on a plan.