Long-Term Care Insurance: Assessing the Risks and Benefits

Long Island, NY Attorney Assisting the Elderly with Long-Term Care Insurance

insurance claim formInsurance companies are pushing Long-Term Care Insurance to their clients, but as a consumer, you have to ask yourself if it is going to be the ideal investment for you. In recent years, more consumers are becoming aware of just how expensive it is to endure long-term care – and more importantly, they are realizing the financial burden that this places on their loved ones.

From nursing homes to residential facilities to assisted living and in-home care, these types of long-term care solutions add up quickly. An individual’s life savings could easily be eaten up in just a few years of long-term care – and for those who have not adequately saved, that could spell disaster.

Long-term insurance is there to help with these situations, but it shouldn’t be something that you buy just because your insurance agent has told you to do so. Instead, you need to sit down and create a long-term plan that includes insurance products – and most importantly, you need to speak with an attorney to make sure that you are adequately covered on all angles.

When Do People Purchase Long-Term Care Insurance?

Most consumers will not purchase long-term care insurance until they are in their 60s. Though, there are some who will purchase it sooner if they know that they will be in need of long-term care. Most people, however, are unable to predict their financial health in the future; therefore, most do not know that they need long-term care insurance until the reasons are right in front of them.

Consider the Odds

Statistics have shown some daunting numbers. Despite what insurance companies will tell you, you may not have a high risk of needing a nursing home or assisted facility. In fact, a large majority of those who stay in long-term care facilities have a short-term stay. Out of those who are sent there, it is estimated that they only spend about six months.

If you have a chronic condition, the likelihood that you will need long-term care does increase. But, you should not supplement solely with an insurance policy. Instead, you should speak with your elder law attorney in Long Island, New York to assess all of your options. Your attorney may help you with Medicare planning and other long-term care solutions as part of your estate plan first.

Consider the Pros and Cons

  1. You will get savings protection. One of the biggest pros to long-term care insurance is that you can preserve your long-term savings. If you suffer from a disease like Alzheimer’s, you will need around-the-clock care as your disease progresses. This can be extremely costly and quickly erode your savings accounts. With long-term care insurance, you preserve that savings for other costs.
  1. Broader coverage than health insurance and Medicare. Medicare and health insurance only cover so much of the cost of in-home care and long-term care facilities. The rest would be out of your own pocket. But, with long-term care insurance, you can offset that cost.
  1. Covering certain conditions. Some insurers will allow you to cover certain preexisting conditions. You will need to select a policy based on your chronic condition or disease, such as diabetes, heart disease, cancer, etc.
  1. Rates are high. You may find that long-term care insurance premiums are just too high. If you end up not using the coverage to its fullest, it will cost you more than it will save you.

Seek a Well-Rounded Estate Plan Instead of One Insurance Policy

Instead of relying solely on insurance to help you later in life, talk to an estate planning attorney and explore all of your options. You may be surprised at just how much a well-rounded estate plan could save you. To see what is available to you, contact the Law Office of Andrew M. Lamkin at 516-605-0625 or request more information online.

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