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With Americans living longer than ever before, many are worried about how they will be cared for should they develop a long-term disability or other type of medical condition. Long-term care insurance can help pay these expenses should the need arise, and it is becoming an increasingly popular choice. While long-term care is an option worth considering, it may not be for everyone.
Here are some of the factors to consider when deciding if long-term care insurance is for you:
Age: The younger a person is, the more affordable a long-term care policy will be. So if you believe that you will need this type of coverage when you get older, the time to start looking into it is in your 40s, not your 60s. Sure, you probably will not need it until later in life, but disabilities can happen at any age, so it is always good protection to have.
Health: Another major cost driver for long-term care insurance is the health of the individual. For example, a younger person in the 40s and in poor health will likely have a premium comparable to a healthy person in the 60s. So to secure the lowest premium, shop for coverage before you develop any serious health conditions.
Cost/Income: Regardless of age or health, if your income is too low to afford the premiums, then it does not make sense to buy it. There is no reason to pay for a policy that you may or may not need when you are older. Also, with the expansion of Medicaid under the Affordable Care Act of 2010, many individuals in lower income brackets will qualify for full Medicaid coverage when they retire.
Long-Term Care as a Business Incentive: When you think of business insurance, long-term care coverage is not normally the first thing that comes to your mind. However, long-term care insurance can be a great incentive to offer your workers in order to attract quality talent to your organization. Many employees today are concerned about how they will get by in their golden years. Offering a long-term care policy as part of the benefits package is a great way to distinguish yourself from other companies in your industry. With group rates and tax incentives available, this benefit does not need to take a big bite out of your bottom line.
About The Author
Todd Balderson has been protecting families and businesses through insurance coverage since 1996. He is the founder of Balderson Insurance Agency and serves clients in Maryland, DC, and Virginia. Todd is known for reminding people about how “insurance is more crucial to building your wealth than investments because without insurance, it’s easy to lose your assets.” Learn more about Todd and the insurance protection he offers at http://www.BaldersonInsurance.com