Retire Well – December 4, 2012
Long-term care coverage: Worth the price?
With premiums up, here’s what buyers need to know
By Elizabeth O’Brien
Many people hear “long-term care insurance” and think “nursing home.” The thought often ends there. Few want to end their life in a care facility, so why would they buy a product that enables them to do just that—a complicated, often expensive product to boot?
In reality, long-term care insurance is a more flexible tool, and one whose value people approaching retirement need to weigh carefully.
But baby boomers should at least understand what it’s all about before making any decisions, financial advisers say, since long-term care insurance can help preserve families’ wealth and peace of mind during difficult times. And it’s best if consumers educate themselves before they develop chronic, later-life health problems—since being sick can often disqualify people from buying coverage.
Once you buy long-term care insurance, your carrier can’t cancel your policy or raise your rates based on your personal health status.
Not surprisingly, the younger you are when you sign up, the less you’ll pay in premiums.
Comments December 4, 2012
Purchasing a Long Term Care Insurance policy requires thorough research. A perfect example of how your research can payoff is when you purchase a Shared Care policy. Many Long Term Care Insurance companies structure this benefit differently than others. Some include a third pool of benefits equal to each spouse’s benefit, providing an even greater level of coverage. Others include a safety net of benefits for the second spouse if the first spouse consumes all the shared benefits. Conduct thorough research or work closely with a knowledgeable Long Term Care Insurance agent that offers multiple insurance carriers.
Aaron Skloff, AIF, CFA, MBA
CEO – Skloff Financial Group
Aaron Skloff, Accredited Investment Fiduciary (AIF), Chartered Financial Analyst (CFA), Master of Business Administration (MBA), is the Chief Executive Officer of Skloff Financial Group, a Registered Investment Advisory firm. The firm specializes in financial planning and investment management services for high net worth individuals and benefits for small to middle sized companies. He can be contacted at www.skloff.com or 908-464-3060.