October is Long Term Care Insurance Awareness Month.
Traditional long term care (LTC) insurance policies have become less popular as the renewal cost rose each year making them unaffordable in many cases. When LTC insurance policies were first introduced there was not much data on claims so a lot of assumptions were used. As time passed companies experienced more claims than expected leading to increased premiums.
Long term care policies changed in recent years using a life insurance policy with a LTC rider. Today there are many different options when purchasing LTC policies.
But you need to know that Long Term Care is a serious risk to your retirement assets. You worked all your life and saved for retirement. You were not expecting to see those retirement savings being used up by your long term care needs. Check out Genworth’s Compare the Cost Report to understand the risk to your retirement assets. In our area a home health aide could cost you $54,912 a year. A nursing home stay could cost you $124,465 a year. At that rate your retirement assets are vulnerable.
Contact us today to have a discussion to see if LTC insurance is right for you. Go to our website to see our report: “Spencer’s Tips on Long Term Care . . . What is Long Term Care and how do I prepare for it.”
Since the new generation of Long Term Care Insurance policies are based on life insurance the sooner you start a policy the less the cost will be. LTC insurance needs to be purchased before you need it. Don’t wait until it is too late and you eat into those retirement assets you built all your life.