What you don’t know about long-term care insurance could hurt you for years to come. Everyone knows they need insurance, but even those who are diligent about other forms of insurance tend to forget about long-term care insurance until late in life. Unfortunately, that is often a big mistake. Not only does it cost more the longer you wait, but you may not even be able to obtain it once an accident or illness strikes.
What It Is
Long-term care insurance provides needed assistance during one’s later years and, even more important, also provides the type of coverage required in the event of a disability or severe illness.
Why It’s Important
Since federal Social Security disability or SSD benefits require a minimum of six months’ illness or injury prior to even applying for coverage - and it takes an average of six months to two years to obtain benefits - there is a significant gap in coverage until basic expenses are covered. Even then, the federal government plans do not cover all expenses.
According to the US Census, four out of five people will eventually experience at least six months of illness or injury that leaves them unable to provide for their own basic activities of daily living.
When to Buy It
Purchasing long-term care insurance early in life is the most affordable and certain way to guarantee your family doesn’t encounter hardship due to unexpected circumstances during your high-income years and long-term outlook.
Part of Your Portfolio
If you are the primary wage earner for your household, have no children or family members to assist during your retirement years or simply can’t count on Social Security to provide for all of your needs, then long term care insurance is a must for your insurance portfolio.
Remember, plan ahead and purchase while you are young and healthy in order to obtain the best rates.