Broker Check

Long-Term Care Insurance

| June 29, 2020

Incorporating longevity planning in a retirement plan can be daunting.  Not only do individuals and families have to plan to not outlive their nest egg, they also must plan for unexpected medical expenses which can include the costs of Long-Term Health Care (LTC).  The costs of LTC can quickly erode one’s nest egg and derail a financial plan. Therefore, there should be a plan in place to address this risk.

There are many ways to mitigate the risks of Long-Term Care costs including self-insurance, traditional LTC policies, or hybrid-LTC policies. Each type of policy has its benefits and it is up to the individual or family to determine what their financial goals are and what they’re trying to accomplish. Some goals for LTC Insurance can include access to specific care, offsetting cash outflow with insurance benefits, or preservation of existing assets to leave for heirs.

When searching for LTC Insurance, it is important to first identify what type of coverage you want, how much coverage you think you’ll need, and how much you think you can fund yourself. You must also determine how much in premiums you can afford. While the longer you wait can save you in premiums in the earlier years, rates typically increase at a faster rate as individuals age so you may actually end up paying more in total premiums the longer you wait to apply. In addition, if you delay you are taking the risk that your health may decline so that the premiums are much higher down the road as opposed to applying when you are in good health.

There are many options available to help mitigate the risks of unexpected LTC expenses.  We are happy to discuss your needs and guide you towards a solution that best fits you.