Thinking of Retiring to Warmer Weather? Why You Should Also Think About Adding LTC Insurance

With Delaware, Florida, South Carolina and West Virginia all appearing as the top US states most densely populated by residents aged 65 years and over, there’s no denying that elder care is a vital matter in the south. If you or any of your loved ones are approaching retirement age, you’ve probably started to think about the possible eventuality of long-term care. If you haven’t, it’s certainly something that is worth considering. A popular solution is long-term care insurance. This coverage can help individuals to pay for the expenses involved in moving to a retirement home or arranging care in one’s own home, where health insurance is not applicable. But is this type of coverage right for you? In this article, we discuss the pros and cons of LTC insurance to help you decide on the best approach.

Why Opt for Long Term Care Insurance?

Long-term care insurance is particularly well-suited to individuals who have savings that they would like to prevent from being depleted by the costs involved in care. The main pros of this type of coverage include the fact that purchasing this insurance can save family members from the stress of providing care themselves. Instead, the payout can cover the fees involved so that loved ones don’t have to.

This type of insurance can be easily tailored to the policy holder’s needs, with various options available to help protect against inflation and to cover an almost endless range of care options. You can select only the elements you require, which means you’re not paying for add-ons you don’t need. With tax-free benefits and tax-deductible premiums widely available, LTC coverage often makes great financial sense. Finally, and perhaps most importantly, the cumulative cost of your premiums is guaranteed to be significantly less than the expenses involved in paying for care over the same period, which is nice for those living on a fixed income. The latter amount is already exceptionally costly and continues to rise year on year, making LTC insurance the smart option.

Why LTC Insurance May Not Be for You

Of course, this type of coverage may not be right for everyone. When considering this coverage, it’s important to understand that you may never require a payout. The intended subject of the policy may live out the rest of their days independently. This means that you’ll have paid into a scheme that will never benefit you. It’s important to be confident that the company providing your policy is capable of standing the test of time. If your insurers are forced to cease trading, you’ll have paid a significant amount of money that you’re highly unlikely to get back.
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Additionally, as with many types of insurance, your premiums may rise without warning. You can arrange for your policy to be protected against inflation, but there is very little you can do if the provider decides to raise the amount they want you to pay. You can use a handy guide to research further details of the available types of long-term care insurance, and to find out whether this kind of coverage might work for you.