Long term care is something we talk about, but very few people actually have a policy. In fact, only about 7.2 million Americans have long term care (LTC) insurance.
To give you a point of reference, the total population of the U.S. came in at about 327.2 million in 2018. In other words, 2% of Americans have LTC insurance.
Yet, 70% of Americans—that’s 229 million people—will need some form of long term care in their lifetimes.
So how are we paying for it?
The short answer: we aren’t.
Debt is rising, particularly for the over-60 demographic, and as more people enter retirement, the question of care grows.
People are forced to go back to work in retirement, go without care that they desperately need, or even accumulate debt in their golden years.
But it doesn’t have to be that way.
Some people have faired acceptably with traditional LTC insurance, but with all the red tape that comes along with it, it just isn’t worth it.
LTC insurance is expensive to begin with, and when you add in the premium spikes, the high record of insurer losses, and the cap of only 3 years of long term care coverage, it just feels like a scam.
After all, 34% of retirees require 2 years or more of long term care. What happens if you need 4 years of help and you only have the insurance for 3? Suddenly all your saving and planning goes out the window.
Because of situations like this, many people have chosen to steer away from any sort of LTC insurance, choosing instead to simply save their money the old-fashioned way in traditional retirement plans and savings accounts.
However, this is not the best use of your money!
There is a new kind of plan that some companies are offering, and it may just be the perfect solution for the need for LTC savings options.
The solution is a ‘hybrid’ insurance plan, called a Whole Life Insurance with Long Term Care policy. I know, it’s a mouthful, but at least it sums up what the plan does pretty well.
As you probably know, life insurance is another important investment to protect your loved ones, particularly in your elder years.
But, with this new hybrid plan, you can save both for your loved ones in the event of your death and yourself in the event of you needing long term care!
These policies, offered by One America, Mass Mutual, MetLife, and several other insurance companies, have a ton of benefits that traditional LTC insurance lacks.
For one, your premium is locked into place when you sign on to your plan, so you don’t have to worry about unexpected spikes in payments.
Plus, also unlike the “use it or lose it” stipulation of LTC policies, Whole Life + LTC insurance returns this money even if you do not require long term care. That’s where the ‘life insurance’ part comes in—if you do not use the money, it is passed on to your heirs.
Whole Life + LTC plans offer long term care (for longer than 3 years if necessary!), death benefits for family, and living benefits such as cash value and that set premium.
When life expectancy is still on the rise and traditional long term care is costly and ineffective, this new option for keeping yourself and your family financially secure in the event of any complications is the way to go.
It allows you to save for yourself and your loved ones, with no strings attached.
With the holidays coming up fast, now is the perfect opportunity to discuss YOUR best options for you and your family. It may not be the most joyous of conversations, but it can mean many more happy holidays for you in the future!