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Part of aging often involves the need for additional support beyond traditional medical care. For example, many older people, due to injury, illness or other aspects of aging, often require long-term care, such as a home health aide or living in a skilled nursing facility. In fact, someone who turns 65 today has a nearly 70 percent chance of needing long-term care, according to the U.S. Department of Health and Human Services.
However, long-term care services can be especially expensive. For example, in-home care, such as the services of a homemaker or home health aide, costs about $6,000 a month on average, according to Genworth. Because standard health insurance and Medicare don’t cover most aspects of long-term care, and since you may not be able or want to rely on family members to care for you, it’s often worth it to purchase a plan that covers long-term care. long term care insurance to help reduce what you might pay Out of your pocket.
However, not all long term care insurance policies are the same. They can vary substantially in terms of long-term care insurance coverage, costeligibility, etc. So before you rush to fill out a long-term care insurance application, watch out for the following mistakes, according to experts.
Start learning more about your long-term care insurance options here.
Thinking about buying long-term care insurance? Avoid these 6 big mistakes, experts say
Experts say you should avoid making these big mistakes when purchasing long-term care insurance:
Ignore other financing methods
While long-term care insurance can be valuable, it is important to consider other ways you might pay for long-term care so you can determine the right amount of insurance for your needs. Long-Term Care Insurance Coverage To buy, if there is one.
“For many of our clients, we look at smart ways to use existing income and resources to better fund care in the face of additional retirement costs. Knowing how far existing resources can stretch a family during caregiving is a good starting point for determining the minimum insurance that might be appropriate,” says Thomas C. West, Senior Partner at Signature Estate & Investment Advisors LLC.
You can also check to see if you have any long-term care benefits through your employer, which could be a great starting point, suggests Larry Nisenson, chief growth officer at Assured Allies.
Find out how the right long-term care insurance policy could benefit you now.
Assuming you are not insurable
Many Long-Term Care Insurance Companies There are eligibility restrictions, such as if your health condition appears to pose too great a risk to the insurer. However, it is important to remember that not all eligibility requirements for long-term care insurance are created equal.
“Today’s products assess risk differently than previous products and even include some that offer guaranteed acceptance regardless of health. Authorized agents can help consumers find the right product, even for those who have been previously denied coverage,” Nisenson says.
Skipping coverage at home
To save money, some people buy long-term insurance that only covers hospitalization or care in a facility, such as memory care. But getting this coverage without also making sure the policy includes home care is a mistake, says Allen Haney, co-founder and president of The Haney Company.
“People don’t understand how much care needs to be provided before someone goes to a memory care facility,” says Haney, who had firsthand experience when his wife died of Alzheimer’s.
Don’t buy inflation protection
An option when buying long term care insurance policies Often this involves adding inflation protection so that the benefit amount can increase over time to keep up with rising costs of care.
“The cost of health care increases every year,” Haney says. “You need to make sure your policy benefit increases as well.”
Waiting too long to buy a policy
Another mistake to avoid is Waiting too long to buy a policyto the point where premiums become unreasonably high or you are no longer eligible.
“It’s ideal to purchase long-term care insurance in your 50s, when you’re still relatively young and healthy. Putting off purchasing can result in higher premiums or even denial of coverage due to health issues. Additionally, not having long-term care insurance can limit your care options,” West says.
Adding too many extras to a policy
While certain aspects of long term care insurance policies It may be worth adding things like inflation protection and home care coverage, but you need to be careful not to add too many other add-ons that will increase costs or not really serve their primary purpose of protecting the insured.
Some vendors “add things that have no value,” Haney says.
In his opinion, for example, it is not worth reapplying the bonuses, “that is just window-dressing,” he says.
The bottom line
Buying long-term care insurance It can be a critical part of protecting yourself or your loved ones from high costs and helping you get the care you may need. However, there are some risks you should be aware of. As with many other types of insurance, policies vary, and it’s important to make sure you understand what you’re buying and how the costs compare to alternatives.
