Website design By BotEap.comAn important consideration when planning for a successful future retirement is longevity. With longevity comes long-term medical care. The financial costs and burdens of aging affect not only you, but also your family, your savings, and your lifestyle. Long-term care insurance makes it easier for you and your family. The American Long-Term Care Insurance Association said the nation’s insurance companies paid out $9.2 billion in benefits to American families in 2017 alone.

Website design By BotEap.comWhile searching the Internet, you may find information that is not entirely accurate. It is important to consider some facts before retirement.

Website design By BotEap.comThe US Department of Health and Human Services states that if you turn 65, you have a 7 in 10 chance of needing some type of long-term care service. In 2016, the value of care provided by unpaid caregivers to people with Alzheimer’s or dementia exceeded $230 billion.

Website design By BotEap.comMany people think that long-term care will not happen to them. Others think that their family will be able to take care of them without any problem. The fact is, as medical science advances, the risk of needing care increases with longevity. Without a prior plan, the impact is tremendous.

Website design By BotEap.comThe national average for a year of home care is $49,192 based on a 44-hour week. The national average for assisted living is $45,000 a year, and a year of skilled nursing costs nearly $100,000 a year. In 20 years, these costs will certainly increase.

Website design By BotEap.comYou should consider the financial costs and burdens of aging as part of your retirement planning. Affordable long-term care insurance will provide the resources for quality care, whether at home or in a facility, allowing a family to be a family.

Website design By BotEap.comNearly half of people who apply for LTC insurance after age 70 are denied due to health concerns, compared to 17 percent of those under 60. The premiums are very affordable, especially when you are younger. Acting before retirement is key.

Website design By BotEap.comPremiums are meant to stay level, based on your health, age, and the amount of benefits you’re applying for. You can read articles about rate increases. These increases have to do with “legacy products.” These are older series of policies that were priced before the interest rate crash and rate stabilization.

Website design By BotEap.comFirst of all, most long-term care insurance policies are designed to have level premiums. There are some policies where the premium increases each year, by design, as benefits increase or you choose to increase benefits. However, most policies have premiums that should remain level based on your age at the time of application, your health, and the amount of coverage you selected. Since most people will select some form of inflation protection, the premium is intended to remain level while benefits increase; the cost of the inflation benefit is already included in the premium. As you read articles about rising premiums, keep in mind that there are plans that intentionally increase over time.

Website design By BotEap.comToday, all plans are priced with the ultra-low interest rate environment in mind (interest rates have been low in the United States for the last decade). This was not always the case. Some of the older series of products have had rate increases. Those increases were based on a few factors:

Website design By BotEap.com• Interest rates

Website design By BotEap.com• Forfeiture rates (ie how many people cancel their policies. In practice very few do, but this was not factored into the premium price in many older plans)

Website design By BotEap.com• Experience in claims and underwriting

Website design By BotEap.comToday, underwriting is much more scientific and conservative than ever before. Premium costs now take into account low interest rates, low forfeiture rates, and also actual claims experience. The Society of Actuaries suggests that the chance of a rate increase on a long-term care policy being sold today is very, very slim. Regardless of those facts, it’s also not easy for insurance companies to raise rates on products sold today.

Website design By BotEap.comWorking with a long-term care specialist will allow you to get the precise information you are looking for. There are several reference websites for research:

Website design By BotEap.comLTC News offers articles and resources: http://www.ltcnews.com

Website design By BotEap.comUS Department of Health and Human Services: https://longtermcare.acl.gov/

Website design By BotEap.comLong-term care will affect you, your family, your savings, and your lifestyle. Long-term care insurance is easy and affordable asset protection. These plans not only protect your savings, but also reduce burdens placed on family members. Take action before you retire to take advantage of lower premiums and better overall health.