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Long-Term Care Insurance – What to Do & What to Avoid

Long-term care financing and planning takes some thought and education to put together a policy that is best for you and your financial situation. It is easy to get confused and become paralyzed into “inaction.” Here are some key points of what to do or not do.

Purchasing Too Much Coverage:

It is important to get some type of long-term care insurance without over insuring. Look at your finances and determine how much you can comfortably afford to pay for long-term care and co-insure with your long-term care insurance policy. Purchasing long-term care insurance can be compared to buying an auto. A Ford will get you to the same place as a Mercedes, but it will cost you much less. Having some long-term care insurance is better than not having any long- term care insurance.

Waiting Too Long:
You will not save money by waiting to purchase long-term care insurance at a later date. The cost for you today is less expensive than it will ever be. As you get older, the rates go up.

Inflation Protection:
You need to seriously consider 5% Compound Inflation Protection, especially if you are under 70 years of age. It costs more, but it adds all the value to your long-term care insurance policy.

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