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Money Matters for Seniors
Long-Term Care Insurance Offering More Choices
As healthcare costs increase, LTC insurance
offers more options.
By Robert Valentine,
Certified Senior Advisor
October 9, 2006 - It’s no surprise that the price
of healthcare in America is rising, and quickly. Since 1995, the cost of
medical care in the U.S. has risen 40% and is showing no sign of slowing
down. That kind of sticker-shock can be difficult to comprehend, even
for those with solid retirement plans. It’s a trend that some insurers
are trying to abate.
One of the largest medical costs today is long-term
care. Caring for someone who cannot take care of themselves, whether
they need an in-home companion, or round-the-clock care, can be
devastatingly expensive. In fact, the average cost of a one year stay at
a nursing home, is almost $70,000. And, that’s why long-term care
insurance is available. Its goal is to reduce that financial burden.
As with every product, long-term care insurance has
its pros and cons but a large number of Americans haven’t even
considered this product as part of their overall retirement planning.
That’s why recently more insurance and financial companies have begun
offering long-term care insurance with a variety of other benefits and
options.
Cost
One of the biggest complaints against some
long-term care policies has been their price tag. While most policies
can potentially save their holders a great deal in medical costs, they
can still be expensive.
In an effort to increase the use of the insurance,
some insurance companies are beginning to reduce their rates on policies
by as much as 15%. Some companies may also start adding a “shared care”
element to their policies. In theory, that would allow someone who ran
out of long-term care benefits to begin using their spouse’s benefits.
Confusion and Availability
Some people are simply confused about what the
insurance is and how you can purchase it. So in an attempt to clear up
some of the confusion, companies are beginning to simplify their
policies and the process to buy the insurance.
Companies are also teaming with more employers to
add long-term care coverage to the list of employee benefits. This is
similar to the way that group life insurance has become a staple of many
companies’ benefits plan.
Return on Investment
One final criticism comes from people who purchase
long-term care policies and end up never needing them. While this is an
obvious risk you take when purchasing any insurance, companies are now
working to increase the benefit of having the insurance.
Long term care policies are also becoming more
flexible and more able to tailor policies to an individuals needs and
are working to become more of an investment option, in some cases they
may even combine an annuity feature.
With all of the improvements and added features of
long-term care policies, more Americans may begin to take another look
at this product. And while long-term care insurance isn’t for everyone,
it may be a great addition to your retirement plan. You should always
work with a financial professional before purchasing the insurance.
Long-term care insurance may be worth considering, as the cost of
medical care doesn’t seem to be slowing down any time soon.
Robert Valentine is a well-known expert in
the matters concerning investors is a regular contributor to
SeniorJournal.com. His articles on financial planning
matters that concern investors have also been published by several
publications throughout the United States. You may visit his website,
www.themoneyalert.com to view some of his most popular articles.
Note: This article was submitted by Robert
Valentine of Financial and Retirement Management. Robert (CA Insurance
Lic #0C23496) is a Registered Representative of and offers securities
through Securities America, Inc., a Registered Broker/Dealer, Member
NASD/SIPC. Advisory services offered through Financial and Retirement
Management, a Registered Investment Advisory firm. Robert is a Certified
Senior Advisor in Huntington Beach, CA. Several of his articles on
financial planning matters that concern investors have been published.
Robert can be reached at (877) 732-2637.
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