Common Questions about Long-Term Care Insurance

I work with many savvy business owners and professionals – many of which own home care agencies or work in the aging arena or other caring professions.

These are a few of the most common questions I get asked about Long-Term Care insurance.

When should I get Long-Term Care insurance?

Some financial planning experts recommend exploring LTC insurance at 50-years old. “Hybrid” policies (the most popular strategy) have issue ages between 40 and 75, though some go younger and some higher. Dave Ramsey says that unless you have a couple million dollars socked away specifically for long-term care expenses, you should get a policy at age 60. So, there’s no hard and fast rule for what age you should get LTC insurance. The truth is that an extended care situation can arise before 60 and the fact is that even though the premium should be locked in a guaranteed rate, the initial cost of acquiring LTC insurance increases the longer you wait.

If I never need care, do I just lose that money?

The older stand-along LTC plans were mostly “use it or lose it.” There are still a few available, but many of the companies that marketed these policies are completely out of the LTC business now.

One reason why “hybrid” plans are so popular is that the “use it or lose it” proposition is completely removed. If, at the end of your life, you’ve not needed any care, your heirs receive the full face value of the policy. Even better, if you decide you want to cancel the coverage, you can get your premium dollars back!

3)   Isn’t LTC insurance too expensive? Isn’t self-insuring a better option?

I’ll never forget an accountant I got to visit with a while back. As only he could do with his Texas drawl, he told me he figured he could pay dollar for dollar what care would cost, or he could pay a dime for every dollar it costs. That was his way of telling me that he considered his LTC insurance an investment against the rising cost of care. And he was spot on. In his case with his older plan, his annual premium was around $5,000 and his monthly LTC benefit was – you guessed it – around $5,000.

4)   What is a “hybrid” Long-Term Care policy and how does it work?

I’ve written an entire article on hybrid plans. Click here to read it.

I worked with senior adults for two decades. Half of that time, I owned a home care agency that served many people with Long-Term Care insurance. There are few professions as rewarding as in caring for senior adults in need of assistance. I loved owning my home care agency and that’s what has inspired my passion as a Long-Term Care insurance agent. I am absolutely convinced in the value of LTC insurance and how it can help mitigate the emotional and financial stress that comes with an extended care situation.

Want to know more? What to visit and have a personalized plan tailored so you can make the best decision? I’ve tried to make it simple and easy. In fact, you can literally jump on to my personal calendar and schedule me. You pick the time and tell me what number to call and that’s it. There is certainly no obligation or commitment, but especially home care agency owners I talk to say our conversation was an eye-opener and many have chosen to move forward with their own plan.

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I look forward to talking with you soon.

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