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How do I know if I need long-term care insurance?

Posted July 17, 2013 in Advice Column, Grimes

With current estimates showing that two-thirds of those aged 65 and older will need long-term care at some point in their lifetimes, there is a high likelihood that you may assistance in the future.

The challenge in planning for such a need is determining the future costs of home healthcare, assisted living, and full skilled nursing care. Bottom line for our aging population is that it will not be cheap.

There are a wide array of options and features that are important to be aware of when it comes to the types of policies, how they work and the benefits of them, but I think starting with a few basic questions can help you determine if you have a need for Long Term Care (LTC) Insurance.

How likely are you to need it? This can depend on your general health, family history and expected longevity.  For example if your family has a history of a serious medical condition such as dementia or Alzheimer’s disease, you may have a stronger reason to consider this type of insurance.

What’s your asset level? Those that come into retirement with less than $250,000 in assets will probably have better uses for their money than paying premiums for LTC insurance and may also qualify for Medicaid if they should need the care. Those with more than $4 million in assets may choose to self insure or use the coverage as leverage against the possible need.

What kind of coverage do you need or want? There are a multiple different premium structures and benefits that you can choose to add to a policy to both help control the benefit and the cost of coverage.

All said, LTC Insurance is not for everyone, but is something that everyone should take a serious look at and determine if it makes sense for your given situation.  If I can help with your financial planning as it relates to Long Term Care Insurance, please come see me at City State Bank or call me at (515)986-2265 to set up a meeting.

Not FDIC insured, Not a bank deposit or product, Not guaranteed by bank, May lose value and is subject to investment risk including possible loss of principal.

Information provided by Wade Lawrence, City State Bank, 100 N.E. Jacob St., Grimes, 986-2265.

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