According to a November 6, 2015 Forbes.com article, researchers have uncovered an issue that is plaguing the consumers of long-term care insurance. As you may already know, smart soon-to-be retirees help offset the massive costs of nursing homes and in-home care not covered by Medicare with long-term care insurance protection. According to Genworth, the median annual price of private room care is estimated at $91,250 – planning is just a smart thing to do unless you have hundreds of thousands of dollars in your savings for long-term care expenses.
The discovery researchers made is truly shocking… According to analysts and researchers at Boston College’s Center for Retirement Research, over 33% of policyholder’s age 65 experience a lapse in their policies before being able to access their benefits. To put that in perspective a couple age 55, purchasing an average of $165,000 of insurance would spend a combined $2,400 per year in premiums, over 10 years that is $24,000! When your policy lapses, you just lost $24,000 at age 65 as that couple.
You may already know through published statistics that people age 65 and older experience a health event that results in 70% of that population needing to access long-term care insurance and services. The sad truth is, when they did not plan their policies correctly from the start, and the time comes when the benefits are needed, they are no longer available. Not only did they lose the $24,000 the invested on premiums, they are also facing potential costs of $90,000+ per year that a vast majority of people simply do not have set aside. Long-term care service expenses can easily wipe out savings and any hope of leaving something behind for loved ones within a few short years.
Our own researches say there is hope though.
Proper planning involves a real and frank discussion about what your financial situation is, what plans you have in place to handle your affairs should you not be able to do that yourself, and making decisions prior to any health events so you have a plan in place when things take a turn for the worse. Admittedly, this may not be the most comfortable conversation to have, but when you work with a trained and caring specialist at California Long Term Care Insurance Services, you will quickly realize that your future health care needs can be handled without financial worry.
Your California Long Term Care Insurance Specialist researches the top rated companies, knows their financial standings, and can work to develop a plan that fits your goals and your budget.
Fill out the form to the right and get started today with a confidential no-cost no-obligation conversation now!