First Fidelity Group, Inc.
  • Home
  • Nurses
  • Services
  • About
  • Blog
  • Calculators
  • Events
  • Contact

Blog

Long-Term Care Insurance: How to Tell Which Policy Is Right for You

7/8/2018

 
Picture
​Thinking about purchasing long-term care insurance? That could be a wise decision. The U.S. Department of Health and Human Services estimates that today’s 65-year-olds have a 70 percent chance of needing long-term care at some point.1
 
Long-term care is ongoing assistance with basic, day-to-day living activities such as bathing, eating, mobility and more. It’s usually provided in an assisted living facility, but it can also be provided in the home, either by family members or by in-home health aides.
 
Regardless of where the care is provided, it’s usually a costly service. Long-term care often costs thousands of dollars per month, and care is often needed for years. It’s easy to see how it can be a long-term drain on your savings.
Long-term care insurance is a popular and effective funding strategy. You pay premiums to an insurer, and the policy then provides coverage for some or all of your long-term care costs. However, policies can vary widely in terms of cost and benefits. You may find the choices overwhelming.

Below are five key components in every long-term care policy. If you understand these elements, you may be better informed to make a decision. A financial professional can also help you find the right policy for you.


Premiums
The policy premiums are the funds you must contribute to pay for the insurance coverage. Some policies require one-time, lump-sum premiums while others allow you to make monthly or annual premium payments.
 
Your premium amount is based on a few factors, including the policy benefits, your age and your health. You may have to go through an underwriting process that includes a medical exam before your premiums are finalized. Generally, the older or less healthy you are when you buy your policy, the higher your premiums will be.


Benefit Amount
Another variable is the amount of coverage the policy provides. This is usually expressed in a daily or monthly benefit amount. For example, a policy may pay up to $200 per day or $6,000 per month for care. You would be responsible for any costs that exceed that limit.
 
Some policies also have maximum lifetime benefit amounts. Again, if your care exceeds this amount, you’re responsible for covering the difference. Higher benefit amounts usually lead to higher premiums.


Covered Services
Most policies spell out exactly which services they do and don’t cover. For instance, some policies may not cover private rooms. Other policies may cover in-home care or even home modifications to accommodate wheelchairs or hospital beds. Some policies can even be used to reimburse your loved ones for care they provide.
 
Coverage varies widely by policy. It’s important to think about your goals and which types of services are important for you. Be sure to research policies carefully to make sure the covered care aligns with your objectives.


Waiting Period
Nearly all long-term care policies have a waiting period, also known as an elimination period. This is a period of time you must wait after you need care before the coverage kicks in. These periods usually last 30, 60 or 90 days. The longer your elimination period, the lower your premiums are likely to be.


Inflation Protection
Finally, you may want to choose inflation protection on your policy. This is usually an optional benefit, so it may increase your premiums. However, it’s an important feature that helps you keep up with rising long-term care costs. Inflation protection increases your benefit amount by a certain percentage each year. That could be especially helpful if you don’t expect to use the coverage until long into the future.
 
Ready to develop your long-term care funding plan? Let’s talk about it. Contact us today at First Fidelity Group. We can help you analyze your needs and implement a strategy. Let’s connect soon and start the conversation.

 
1https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17748 - 2018/6/19

Millie Hue link
7/20/2018 07:24:05 pm

It really helped when you said that we should do some research about the different policies to have an idea which of them will be appropriate for our needs. This will really be helpful for us since we needed to get an insurance for my brother. He always had special needs, and we needed to secure his future especially that our parents are getting older now. Sooner or later, they will be leaving me and my brother, so I have to make sure that my brother will be able to get his needs.


Comments are closed.

    First Fidelity Group

    With more than 39 years of experience and knowledge, we've seen it all. We understand each client is unique and faces different challenges.

    Archives

    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    October 2019
    August 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017

    Categories

    All
    Assets
    Business Succession Planning
    CARES Act
    College
    COVID
    Death
    Disability
    Emergency Fund
    Estate Planning
    Financial Planning
    GDP
    Insurance
    Long-Term Care
    Managing Medical Expenses
    Milestones
    Pandemic
    Retirement Budget
    Retirement Income Planning
    Retirement Planning
    Social Security
    Stimulus
    Tax Planning
    Thankful
    Thanksgiving
    The Market

    RSS Feed

First Fidelity Group, Inc. 
7041 Canal Blvd.
Suite # 133
New Orleans, LA  70124

​
337.560.1805
info@FFGretire.com
Picture
Site Map
Home
Services
About
Contact
Licensed Insurance Professional. Respond and learn how financial products, including insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
  • Home
  • Nurses
  • Services
  • About
  • Blog
  • Calculators
  • Events
  • Contact