With long-term care insurance policies, the costs of assisted living facilities, in-home care and private nursing homes are covered. In most cases, these policies offer inflation protection, too. Since so few eligible consumers are signing up for policies however, companies that offer these policies are trying to make them more palatable.
It is an unfortunate fact that healthcare costs are steadily rising and will only continue to rise into the foreseeable future. Accordingly, inflation must be factored into any long term care policy if the intent of the policy is to fully insure the cost of any long term healthcare expenses. Thankfully, as reported in a recent Reuters article, the long-term care insurance market is growing to accommodate the growing need and several new options are becoming available.
No one likes to think about growing old and frail, perhaps falling victims to either dementia or Alzheimer’s. Denial of the possible adverse effect of aging makes it easy to procrastinate. Best advice? Don’t fail. While paying policy premiums is never fun, failure to plan could result in the loss of all the assets you’ve worked a lifetime to acquire.
According to Matthew Sharpe of Genworth, “Long-term care is definitely under-penetrated [market], there’s no doubt about it. [Only] about 4 percent of the population that is eligible actually has a policy.” Because of this, Genworth and other companies are developing newer and easier tools for consumers to use, and that just might translate into newer and better policies for you to consider.
Whether or not there is a policy option that is right for you depends on your unique circumstances. As pointed out in the original article, the strongest reason to secure a policy may be the possibility of dementia or Alzheimer’s. While there are many ideas presented in the Reuters article for your consideration, nothing can replace the advice and counsel of an experienced long-term care insurance agent to help you navigate your options.
You can learn more about this topic as well as other strategies on our website under the tab entitled: elder law planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning.
Reference: Reuters (August 16, 2011) “Long-Term Care Insurance Gets a Makeover”