Mike Greene
Employee Benefits Specialist
Eagan Insurance Agency
The best candidates for long term care insurance are those individuals who are healthy and 50-plus years old. Just know that the longer you wait, the more expensive it becomes. If you have ongoing health conditions then chances are you will be uninsurable, which is another reason to get it early. The main objective when purchasing a LTC policy is to have the funds to pay for someone who can take care of you. If you have worked hard and saved a lot of money for retirement, then you may not need to purchase a policy that pays for 100% of this expected cost. Just know that the cost of this care will continue to rise, like everything else. Good questions to ask when purchasing a LTC insurance policy include, What are the qualifications to receive the benefits? How are the benefits paid and who can they be paid to (do they have to be licensed or skilled caregivers)? Can I receive care in my own home? Is there an inflation protection rider available or does it make more sense to just purchase a flat higher amount? Is there a shared care option for married couples purchasing a LTC policy together? Long term care insurance has evolved over the last several years. Personally, my favorite option is a whole life policy with a long term care rider. If you die before any care was needed, then your beneficiaries receive the life insurance, and there aren’t any wasted premiums. If you do need care, then the life insurance policy pays a long term care benefit.
Joe Celano, MBA, CLTC, CSA
Certified Senior Advisor
Intrx HealthCare Long-Term Care Division
The younger and healthier, the better for insurability and costs. LTC planning is a core component of financial retirement planning, so planning while young is very advisable. The most important questions to ask are those that help identify a LTC specialist with enough industry knowledge and without bias toward any carrier or product. A true LTC specialist works exclusively with LTC planning. Seek one that you are comfortable working with.
Kevin M. Gardner
Senior Vice President
HUB International
A person should look for long term care insurance not when in need, but when they are in decent health, both physically and mentally. Most, if not all policies have medical questions to qualify. The number of companies that offer this coverage has shrunk over the years, as has the liberalness of the policy definitions. A purchaser should be careful to check the rating of a company and the definition of benefits. How you get paid, for how long and who can deliver the care, at home or in facility, is critical to finding the right plan for you.
Sean Flynn
Financial Advisor
Northwestern Mutual
In planning for a desired lifestyle, one of the most relevant topics we address is incapacitation planning: What is your plan should you become incapacitated, temporarily or permanently? What is covered under Medicare? Medicaid? How do you envision your care situation? How do you envision funding this financial exposure? Herein lies the magic of how planning for long term care can provide that “protective moat” around one’s financial freedom plan.
Jack Duvernay, RHU, REBC
President
Benefitsone
The best candidates are anyone who doesn’t have the means to pay for this care, which can cost $7,000 per month. Some questions to ask when shopping for a policy are: What are the claim-triggering events?; How long will benefits be payable if I go on claim?; How long must I wait to receive benefits once I file a claim?; Are benefits paid on a reimbursement or indemnity basis?; How much coverage do I need?; Can my policy (be canceled) for any reason?; and Can my premiums increase in the future?
