Present Issues On Long Term Care Insurance For Baby Boomers

The long term care insurance for baby boomers needs more attention and must really be prioritized but is seems like it is too late for the other “baby boomers” to get hold of an LTC insurance policy specifically because the rates are much more expensive nowadays and they now lack stable financial resources that they can spend to pay for their LTC services.

 

The cancellation of the Community Living Assistance Services and Supports Act, more popularly known as the CLASS Act, has made it even harder for them to get an opportunity to avail an affordable and more budget-friendly LTC insurance policy. This is one of the reasons why many of them worry of not getting the proper medical and health services that they might need in the coming years.

 

President Barack Obama signed this LTC policy option into law in 2010 hoping to address the LTC needs of the majority of the population that cannot afford paying the high-priced LTC plans available. But unfortunately, it was cancelled during the last quarter of 2011 due to “ineffectiveness” and “lack of sound trust fund” to support the services and facilities that the first wave of beneficiaries would need five years from now.

 

This cancellation posts bigger dilemma for the baby boomers especially because the rates of the policies that they were supposed to have increased drastically to the point that it just may take up all their life savings and personal assets if they purchase one now.

 

But this problem of long term care insurance for baby boomers could have been prevented if only they have been more vigilant and cautious on the possible consequences that they have to deal with if ever they have failed or plainly decided not to avail any LTC insurance plan that could cover their medical needs.

 

Due to the wrong perception that the rates will still be the same or would be lower as the person nears his retirement age, some baby boomers are now rushing to find other possible ways in order to have proper medical treatment and attention for all their LTC-related needs.

 

Purchasing an LTC plan requires the person to be financially ready and able to compensate for the monthly premiums that he has to pay until he satisfies the period that is indicated in his insurance contract. This is why early planning is necessary in order to be prepared for any monetary concerns that the individual might have should he decide to avail his own policy.

 

It could also give them more ideas on how to cut costs from their premiums and maximize all the possible benefits and other perks that their LTC policy could provide them. By doing this, they can avoid paying for expensive LTC rates without sacrificing getting their needed facilities and LTC services.

 

The problem with long term care insurance for baby boomers still needs to be resolved so that they can receive better services in the coming years. However, those who still have the time and financial resources to avail LTC policies should start thinking about their future and prioritize their LTC plan purchase.

Cost of Long Term Care Insurance Gets Worse

The American Association for Long Term Care Insurance reported that the prices of policies sold by the 10 of the country’s biggest insures have increased by 17 percent than last year’s rate. AALTCI’s executive director, Jesse Slome, said “Insurance prices have increased as a result of the historic low interest rates and yields on fixed income investments.”

 

 

AALTCI made a thorough study on consumer’s choice in purchasing from the available among the top 10 LTCi policies. The results show the average cost for a 55-year old single individual who qualified for preferred health discounts is $1,720 for between $165,000 and $200,000 of current coverage.  In 2011, a person would incur $1,480 yearly using the same coverage. The study reveals the gap between the lowest and highest cost of policy had stretched compared to last year.

 

The association also look at the policy prices among 55-year old single individuals and couples age 55,60, and 65. A 60-year old couple with the same benefits of $340,000 could pay around $3,335 annually, provided that the couples have qualified for health discounts.

 

Slome stressed that the policies are “properly” price, but agreed they are “expensive.” There are around eight million people with LTC, according to the AALTCI.

When your parents need long term care

Had not been of your parents, you would not set foot on where you are today. Your parents have played a crucial role in your life and, even if they age, they are still the same individuals they’ve been before. While your aging parents might want to live independently, you want them feel loved and cared by running errands and financing their health care needs.

 

Long term care is something that parents and children must be addressed before it hits them. Deciding about the living arrangement and care options is important to prepare for future health needs and make everything run smoothly. The living arrangement—whether they want to live independently or near you—must be decided by the two parties, so both could adjust to each other’s wants.

 

The reality about long-term care is it can be expensive and the duration is uncertain. How long will your parents need long term care is ambiguous question that nobody could answer. But one’s thing for sure—long term care costs can make you go broke! Wherever state you live, expect the costs are always high.

 

Any time, your parents may decide to self-insure. But this can be done with some limitations—if they have huge savings and assets and they need less medical treatments and personal care. Nevertheless, if they need frequent trips to the doctor and require 24/7 assistance then it can literally exhaust all the family’s savings in a snap; and, worse, you will be compelled to pay the bills.

 

Now, here’s long term care insurance to the rescue! this type of insurance has been around the market for years, but, unfortunately, very few people consider this option.

 

With the minimum benefit amount, you can already have your parent/s insured. A policy can pay both medical and personal care in any facility where your parents wish to stay. This can also make their dream of having ultimate independence even when they age possible.

 

Is long term care insurance the only solution?

Probably you are wondering, “Hey, is long term care insurance the only option left?” A lot of people arrive to that conclusion that long term care insurance won’t work for them, and buying one will only push them to financial setbacks.

 

I’m aware of the misconceptions people set on fire as they talk about long term care insurance. However, there are couple of reasons why long term care insurance—not only—but the best solution when preparing for your care.

 

Government Medical Programs Wont Give You Security

Many Americans rely on government programs like Medicare and Medicaid, hoping that they would get as much as they need for their future health needs. Unfortunately, government programs just 16% or less of long term care in the country. Medicare covers hospital stay or home care for very limited services and days. Medicaid, on the other hand, has strict qualification policies for people with less than $2000 in assets and income will be entertained. The Veterans Administration covers nursing home care for veterans who have disability related to their job.

 

Health and Life Insurance Will Not Compensate LTC Costs

Both health and life insurance are not designed for long term care, so you wont be able to use them to pay for nursing home or assisted living. However, you could use the accrued cash from your life insurance when you no longer need the coverage to purchase an LTCI rider as addition to your current policy.

Some companies today are coming up with policies that will cover both life and long term care