Saving for your Health in Later Years

A lot of younger individuals have been very keen to having the latest gadgets and luxurious lifestyle even to the point they strip off their savings for those fancy whims.  While younger people are more frivolous because they want to enjoy every opportunity they can reap from their age, they’ve forgotten something far more important – their later years.

Ask any young adult if she/he has had any health insurance or consider getting one, and expect a number of those who say “No” or “I don’t even think about it.” Some of them are obviously not bothered or worried about their health because they thought of counting on government programs such as Medicare or Medicaid when the time comes they are in dire need for care. Unfortunately, very few individuals have addressed this concern and planned for long term care.

At present, there are number of families who have been crippled in debt and lost their properties or assets due to the increasing long term care costs.  Residents in Alaska, Massachusetts, Connecticut, and Hawaii have been pressed down as long-term care services are seriously taking its toll on their health and finances. Another reason why it hurts a lot of Americans is their mere hesitance of planning for their future health for a number of personal reasons. Others are terrified of spending their senior years in a nursing home while some people believe that they should not worry as long as they have families and government to turn to.

Whatever reasons or alibis people make to delay planning for their health is simply a waste of precious time to save their assets and their loved ones from footing the bill. People should not hasten but plan wisely for long term care to avoid lifetime regrets.

When should you buy? This confuses a lot of people as to whether buying it in their early or late 50s will save them from exorbitant premiums. However, experts agreed that the best age to purchase LTCi is in your 40s or 50s—the time you’re not too close to any pre-existing health condition. Remember that premiums will become more expensive should you wait for an illness or disability manifest.

Choosing Long Term Care Insurance Provider Requires Extra Effort

Just like shopping for a favorite pair of sneakers, you should be more critical about buying a long term care plan that could squeeze your monthly income if it wasn’t the ideal policy that you need. Remember that any investment—whether how big or small—must be carefully planned and analyzed to protect everything that you have worked hard for through the years.

Long term care insurance, they say, is one of the most difficult types of insurance to begin with because it offers various coverage and add-ons. Another problem that concerns consumers is where to purchase a long term care insurance policy since there are a number of insurance providers or carriers in the country. Yes, oftentimes, the myriad of insurance companies getting in the industry makes it more confusing for consumers to choose the right provider for them.

However, while the policy’s price has been the ‘cream of the crop’ for most consumers, one must understand that the company’s or the provider’s stability is a pivotal point to pursue your purchase. Please understand that some companies are using various well-developed marketing strategies to captivate the consumer’s attention and lure those who are ready for the thrill. It requires you to be more inquisitive and judicious on any information laid down on you to shun from financial regrets.

Conduct a background check. There are so many key players in the industry today, but the question is: who is the most outstanding? Always check www.moodys.com or www.standardandpoors.com to give you idea how a potential company is rated and its current condition in the industry. Steve Vernon, a financial adviser at MoneyWatch, tells consumers to scrutinize how a company increases its rate. “Several rate increases is a red flag,” Vernon said.

Be realistic. Some people cannot afford individual policies so they go for group plans. If this is the case, you should ask your employer or retiree association if they offer LTC plans. Nevertheless, if you opt for an individual plan, you should shop around your state and compare the benefits and costs with other insurance providers.

Choose a provider that covers wide care options. It’s a wise decision to deal with an insurance company that offers coverage for wide range of long term care services. Inquire if a certain policy pays for both medical and non-medical services and access to various facilities such as nursing home, assisted living facility, adult day care, and etc. An insurance company that offers very limited care options is not a good choice since your long-term care needs may change

 

Long Term Care Policy Prices and Planning For Health Care Ahead

How do you see yourself come retirement time? Are you in a cruise with your husband/wife enjoying yourself splendidly? Or are you stuck in debt, paying off that ridiculously expensive Long Term Care plan?

 

You might not be aware that Long Term Care policy prices increases rapidly yearly. So the best money-saving tip is to plan ahead. Buy a policy while you are still young and don’t let the rising cost of medical care control your life in your later years. Be prepared for a long and healthy future as early as now. Go around and search for the best affordable plan. You may also check out various sites online that offer free insurance quotes which can help you decide on what plan to purchase. Do all necessary ways to curb cost and use that extra money to save up for your family’s future.

 

How important is an LTC plan and how much do you need it? Is it a necessity or just one of those other insurance plans that people force you to buy but do not end up using anyway? According to statistics, at least 70 percent of people over 65 years of age will definitely require assisted living services at some point in their lives. Will Medicare pay for long term care? Contrary to people’s beliefs that Medicare and other private health insurance programs may pay for these kinds of services, they don’t cover majority of these services at all.

 

Long Term Care policy prices continually increase along with the increasing inflation rate. The current cost of an average stay in nursing home, which is 2.9 years, is $241,219 per person or $482,438 for a married couple. The annual costs of Long Term Care are the following: $83,179 in a nursing home, $44,345 for assisted living facilities and $38,317 for home care. These staggering costs can surely erode one’s life savings.

 

While the LTC prices are still well within your means, start securing your future and reward yourself with the best health care that you deserve. You wouldn’t want to see yourself 20 – 30 years from now being passed on from one family member to another, without anyone to look after you. Spare yourself and your family, not just of financial and physical burden, but psychological as well. Not being able to fend off for yourself is already very difficult, but being dependent on your loved ones doubles up the stress of the situation. Most of your family members might have to sacrifice their jobs to look after you. Or in a worst case scenario, if you become sick with dementia, Alzheimer’s or other degenerative diseases, they might not be capable of giving the proper care that you need.

 

With a Long Term Care policy in place, you’ll have the funds to pay for whatever kind of health care you prefer – may it be for a home nursing care, adult day care, residential care or any other types of senior living aid.

 

Remember, you have the power to protect yourself from possibly facing the biggest financial risk in your retirement years. Give yourself a peace of mind and make the transition to your golden years a smooth one. Start knowing the long term care policy prices today and start pondering on purchasing an LTC plan.

Planning for Long Term Care

My friend, Kara, phoned me last night saying that she could not get out of the woods. She cried the entire conversation. Kara’s father has had early signs of dementia, but her mother, who’s still in denial, insists that her husband is in perfect health and refuses any treatment advised by the doctor. Since 2008, they have hired a professional caregiver and nurse to attend to his father’s needs and keep him in their home as her mom’s request. However, it was only last month when Kara learned that the family’s savings have been depleted and they are in crippling debt after knowing that her father has owed a large sum of money from a bank for an expensive car.

Kara’s story is one of the tragic incidents in the lives of millions of Americans. The current health care is daylight robbery that can victimize anyone regardless of his or her social status.

We can draw out an important lesson from Kara’s experience: plan your future health.  Some people are too proud that they got the grips with it, but when they draw near with the situation, they never find the way out. It is heart-breaking to lose money that you’ve worked hard through the years and watch your entire savings diminished in a year or two. For people who are thinking that long term care is dirt-cheap, they might be deceived. The current costs of nursing homes and assisted living facilities are higher than the average so how could a middle-income earner manage the expenses and so do low-income earners make ends meet.

Equipping yourself with long term care insurance can save you from overwhelming prices of care. Nonetheless, smart planning is key to succeeding in this financial endeavor. Here are few tips to get you started:

Aim for shorter benefit period

Some people mistaken long term care insurance with life insurance. Others are discourages from buying an LTCi policy because they thought they would be paying for lifetime benefits. In a latest study, experts found out that only 8% of 70-year-old policyholders are likely to need care for more than five years, the rest need less than five years.

Cutting your benefit period below that five-year lapse may significantly reduce your premiums. However, people with chronic health condition such as Alzheimer’s are said to break the rules – they would need exact or more than five-year coverage.

Shared-Care Policy

The shared-care policy allows you and your spouse tap the pool of benefits. Most insurance carriers offer this kind of policy though this one costs 10% higher than individual policies. This policy may be used in other states where partnership program is being observed.