You’re NOT too young to plan NOW for long-term care
November is Long-Term Care Awareness Month. Even the U.S. Congress has urged “the people of the United States to recognize (this) as an opportunity to learn more about the potential risks and costs … and the options available.” We’re proud to support this important educational campaign.
Smart reasons to think about long-term care as part of your overall financial plan.
You protect against other risks like a car accident or house fire. A need for long-term care is a risk to your savings and to your retirement. It will impact your family and loved ones. Just as it is smart to plan ahead for retirement, it’s smart to plan now for long-term care. Here are some things you should know:
Buy before age 65; avoid the high cost of waiting.
Your age and your health are important factors that determine the cost of long-term care insurance protection. Costs are based on your age at application and go up each year. By waiting to purchase until you are closer to retirement you might find it’s just too expensive to buy this important protection.
At younger ages you can lock in good health special savings.
Your good health today can help you ‘lock in’ preferred health discounts that won’t changeeven if your health does. If you currently have a health condition it’s especially important to find out if you can health-qualify before it may get worse.
Hybrid Long-term care plans are an option
When I ask someone why they have not done any planning for long-term care, the top two responses are: (1) “It’s a lot of money, and if I spend tens of thousands of dollars on insurance premiums and I die in my sleep, the insurance company keeps that money”, and (2) “It’s never going to happen to me”. Response to (1): In a traditional long-term care plan, you are paying to protect against the risk of needing long-term care. If you never need it, you don’t get a refund of your premiums, just as you don’t get a refund of your automobile insurance if you don’t have an accident. There are hybrid plans through some Universal life insurance policies that allow you to access the death benefit if you have a chronic illness and need long-term care. If you own one of these plans and never need long-term care, a tax free death benefit will pass to your beneficiaries. Response to (2): There is no way to predict the future! We all age and many of us will need long-term care due to a sickness or just the normal process of aging. Having a plan can enhance your life during these years.
The first step is in your hands.
Getting the information you need to make an informed decision is always a smart move.
Waiting is never advantageous.
There’s a saying: Failure to Plan is a Plan For Failure.
