Don’t Wait Too Long to Consider Long-Term Care Insurance
July 13, 2020

So, you’re a successful executive.  You wake up early, get home late, and the entire time you’re on the go you concentrate your attention on your career and your family. But amid all the commotion of daily life, who is taking care of you? Do you have a plan in place for your own potential long-term care needs?

According to the 2019 U.S. Department of Health and Human Services, 70% of people turning 65 can expect to use some form of long term care during their lives. (https://www.hhs.gov/aging/long-term-care/index.html) And when that time comes, you will feel much better knowing you have arrangements prepared in advance to cover your needs.

What needs are we talking about? 

Long-term care (LTC) refers to an extended period of time that a person (hired or family member) tends to someone who cannot perform any two of the six “Activities of Daily Living,” which encompass basic functions such as eating or getting dressed. It can also include care provided to a person who suffers cognitive impairment, as in the case with Alzheimer’s. Sometimes care is given in a nursing home or assisted living facility, but often LTC is provided in a patient’s home. In Maryland, the high cost for such service remains constant—over $120,000 per year for a private room in a nursing home and nearly $55,000 per year for in-home assistance at 40 hours a week (https://www.genworth.com/aging-and-you/finances/cost-of-care.html).

The price may be expensive, but the need may be very real. This situation warrants a look at long-term care insurance to cover the expenses for this type of assistance. In doing so, you will help protect your assets from being used for this purpose—if you do not have LTC insurance, you are responsible for paying your own way for your long-term care or relying on family members to provide this service.

Too young to think about it

You may think, “I’m too young to consider long-term care insurance”.  But you’re probably not. As with the cost of life and disability insurance, the cost of long-term care insurance rises with your age, so the sooner you have it, the better. The generally recommended time to purchase a policy is when you turn 50; if you wait too much longer, you may be uninsurable.

Have a discussion with your insurance agent and a financial planner to see how LTC insurance may fit in to your overall financial goals.

Elizabeth Paal Goss is a Registered Representative of Lincoln Financial Advisors. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (Member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. 307 International Circle, Suite 390, Hunt Valley, MD 21030.Heritage Financial Consultants, LLC is not an affiliate of Lincoln Financial Advisors Corp. CRN-3098153-052220

 

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