When should you buy insurance?
April 29, 2022
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First Underwriters Insurance Brokers provide insurance protection for employment practices which includes coverage for defense costs and damages related to various employment-related claims including allegations of Wrongful Termination, Discrimination, Workplace Harassment, and Retaliation.
Americans are now living longer, healthier lives due to advances in medicine and preventive care. While that is wonderful news, it also means that there is an increased risk of living with a chronic health condition that may require extended care. Long-term care (LTC) insurance is a good way to offset the high costs of extended care.
What is LTC insurance and who needs it?
Long-term care refers to a wide array of medical care, personal assistance, and social support services for people who are physically or mentally unable to independently care for themselves for an extended period of time. Whether you need long-term care insurance depends on your age, health status, overall retirement goals, income, and assets.
A long-term care insurance policy covers any or all of the following types of services:
Most policies pay a daily maximum benefit and a lifetime maximum benefit. Actual benefits are chosen at the time the policy is purchased.
According to the Health Insurance Association of America, the average age at which people purchase long-term care insurance is 62. However, purchasing a policy at a younger age typically means policies’ premiums are much more affordable. While you may pay for a longer period of time, taking out a policy around age 50 allows you to enjoy the peace of mind in knowing that you are covered.
How does LTC insurance differ from disability insurance?
Unlike medical insurance or disability insurance, which cover a limited amount of recuperative time, a LTC policy will cover two years or more of care. In addition, disability insurance replaces only your salary at the time of an injury, not throughout the duration of your care. As a result, you will be responsible for paying for any ongoing LTC.
Medicare is also not a viable option to recoup the costs of LTC. This program only reimburses for a maximum of 100 days, with the average repayment lasting only 28 days.
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