Expensive or Affordable?
Quite often we work with clients to understand the cost of a long-term care premium versus the cost for one month in a nursing home for one person in the area in which they currently live. For most people, this valuable protection is quite affordable especially if you compare to that monthly long term care stay in a nursing home. Many potential applicant will reply by saying if they could design an annual premium for long term care insurance for two people that is around or less than the cost for one month in a nursing home for one person right now – that makes a lot of sense.
Keep in mind, health can impact premium so the affordability of long term care policies depends on one’s age, health and policy parameter design. With Rich’s help, one can customize their own policy – even different than their spouse if they choose to. Rich does not “know nothing about you” and then design a policy regardless. Clients’ thoughts, experiences, where you live or will end of place of needing care, cost of care in that area, family factors, actuarial date, averages and a little bit of “gut” go into policy design.
Income and assets come into play which involves co-insurance – or how much the policyholder feels they can pay towards the cost of care – if they choose to use this approach. Therefore, one’s current and future income, the total amount of assets which includes savings and investments – and other financial factors are used to determine the total amount of benefits that would be best for you and your family.
The policy needs to be affordable not just while one is working, but also at the point of retirement. Base affordability on retirement income, not working income.
Rich can share with you the appropriate amount of coverage based on your situation. While you don't want to buy a small policy just to buy a small policy, Rich will illustrate how a small plan can provide you with your choice of quality caregivers, asset protection, and a reduction in family burden.
The key is to design a plan specific to you. Rich will ask you several questions so he can make appropriate recommendations. Ultimately, you get to decide the amount of benefits you wish to have in place.
Remember, many plans include case management. This benefit is a considerable resource that, at claim time, can help you and your family find caregivers and make arrangements for your care. Case management gives your family the time to be family and reduces the stress and strain that is otherwise placed on those you love.
Here are some key variables to cost.
- Age
- Health
- Spousal/Co-Habitation Status
- Amount of Monthly or Daily Benefit
- Benefit Pool or Benefit Period Amount
- Inflation (either a specific guaranteed percentage every year or options to buy extra benefit)
- State of Residence
- Additional Riders (Shared Care, for example)
- Elimination Period
- Limited Pay Options
Rich Schwab is licensed nationwide and is certified with the federal/state long-term care partnership program available in most states. Representing the major insurance companies, Matt can help you shop for the best coverage at the best value, shopping all the major insurance companies so you can enjoy peace-of-mind for yourself and for your family.