The result of better nutritional eating habits, exercise and medical advancements is that people are living healthier and longer lives. Living longer is a good thing, but a longer life means being able to stretch pension and retirement funds. The most costly area that seniors encounter is medical expenses, especially for long term health care. Without a Long Term Care (LTC) Insurance policy an individual can see his or her resources, both funding and assets, evaporate at a fast pace. Individuals planning for retirement need to consider and calculate for their medical care during their senior years. Knowing what type of LTC policies are available and when to purchase a policy can help to keep the monthly premiums affordable.
<strong>WAYS TO BUY LTC INSURANCE</strong>
The cost of a LTC policy will depend on what type of medical coverage a person wants and for how long. There are three major forms of LTC policies that will help people acquire coverage at a manageable premium for their individual situations.
1. The least expensive insurance is a policy that does not include any inflation adjustments. The policy holder needs to understand that this type of insurance does not require increased premium payments but will require the policy holder to pay some out of pocket expenses.
2. Another option for a LTC policy is one that does not include an inflation factor but does allow for the opportunity to purchase additional medical coverage at later specified dates for a fixed cost set when the policy is initially purchased. The caveat here is that a policy holder must purchase the increased coverage at the offered times or the ability to purchase more coverage will be forfeited.
3. The most expensive policy includes an annual 3 to 5 percent inflation increase. This type of policy will cover more expenses and help to keep the amount of out of pocket costs to a minimum.
<strong>WHEN TO BUY LTC INSURANCE</strong>
The American Association for Long Term Care Insurance recommends that individuals consider purchasing policies between the ages of 50 and 64. The assumption is that purchasing a policy at today’s medical costs will result in significant savings when used in the future.
An insurance agent should provide a potential policy holder with a number of coverage options from a number of insurance companies that have an A rating, or better, for coverage as well as claims processing. The younger a person is when purchasing a policy, the lower the premiums.