Many solar installers are members of the NECA and look to the organization for direction and benefits like insurance, discounts, and more. One missing piece of the insurance puzzle not covered by NECA or other group benefits is insurance for assisted living, nursing homes, and home care commonly referred to as “long term care insurance” or “LTC insurance.” It’s a product that is actually targeted to younger people (age 40-60 typically) to be used later in life.
Have you ever thought about what will happen when you get older? Or if you get sick? Will you be able to afford the costly prices of long-term care? If not, then you should start looking into either long-term care coverage or a new version of the policy called hybrid long-term care insurance.
Long-term care is extremely expensive, especially for people that live in Alaska, Connecticut, Massachusetts, Hawaii or New Jersey. According to ThinkAdvisor, if you lived in Alaska in 2016, the average annual cost of long-term care was $114,767 and prices will continue to rise throughout the years. A private room in a nursing home can cost up to $292,000. View all of the raw data here.
As you can see, paying for long-term care is not exactly painless. If you don’t have any kind of long-term care insurance then paying for this could cost you an arm or a leg, or worse, it might have to come out of your retirement funds. If you would like to save these funds for retirement and keep all of your limbs intact, you should begin looking into hybrid long-term care insurance.
You may be thinking why should I invest into hybrid long-term care insurance instead of traditional long-term care insurance? Well, the problem with traditional ltc insurance is the use-it-or-lose-it factor. You could be paying years and years of premiums and the minute your premium is up, if you did not end up needing care then you lose all of that money. With hybrid ltc insurance, you pay one upfront premium (of $100,000 for example) and you get all of the same benefits from traditional ltc insurance. The difference between the two is if you don’t use that $100,000 then all of that money, as well as some extra, will be given to your family at the time of your death. Do you want to know the best part? All of that money is tax-free!
Another benefit is the guaranteed premium. This means that if the insurance company miscalculates the risk and the premium you paid is less money than your long-term care will cost, then the company will have to pay for it out of their pockets because they’re not allowed to ask you for more money.
If you are one of the many people who believe that you will never need long-term care, guess again. Here are some stats from A Shopper’s Guide to Long-Term Care Insurance to help you understand why you should start looking into hybrid long-term care insurance:
- Life expectancy after age 64 is now 18.6 years. In 1940, it was only 13 extra years after the age of 65. The longer people are living, the higher the chance of needing help due to chronic conditions.
- About 70% of people who reach the age of 65 are expected to need some form of long-term care at least once in their life.
- About 11 million Americans of all ages require long-term care, but only 1.4 million live in nursing homes.
- About 35% of people who reach age 64 are expected to enter a nursing home at least once in their lifetime. Out of the people who are in the nursing home, the average stay is one year
- From 2015 to 2055, the number of people aged 85 and older will triple from over 6 million to over 18 million. This growth is definitely going to lead to a rise in the number of people who will need long-term care.
As you can see, there’s a pretty good chance that you or your loved one will need some form of long-term care in your lifetime. The younger you are when you purchase a premium, the cheaper it will be, so you should start looking into hybrid long-term care insurance as soon as you can. If you wait until a sickness or injury develops, very few hybrid ltc insurance companies will provide the coverage you need.
Some people believe they do not need to invest in ltc insurance because they will be covered by Medicare or Medicaid, but what they do not know is how strict those qualifications are. Most people will have to use up all of their assets and even then you may not qualify due to the extremely strict limitations. Wouldn’t you rather be safe than sorry?
Contact one of the agents at LTC Tree to request some hybrid long-term care insurance quotes today!