Why as I did that it took so long for the industry to come up with it. You may or may not be aware of the odds of death last I checked it was one out of one. So Unlike any other kind of insurance life insurance assuming you’re smart enough to die with your policy in force is a guaranteed win because we.
All die in when we do The claim is paid. On the other hand the. Odds of certain other types of losses we buy insurance for for example the odds of your house burning down is one in twelve hundred the odds of needing long term care when we get older before we die seventy percent The odds of Either you or your spouse needing this type of care either in your home or in a nursing home ninety one percent insure you can buy insurance to cover that But Here’s the truth about long term care insurance.
First it can be very costly And your age It can cost thousands of dollars a year second. Rates for long term care insurance are never guaranteed which means the insurance company can raise your rates in the future over the past twenty five years even the best long term care insurance companies have raised rates multiple times.
Can you imagine Buying a policy it’s age fifty six and then at age sixty five you get a notice telling you that your rates are going up by forty percent then again at age seventy two again at age eighty right before your figure you might actually need the coverage How would you feel Three in order to make a claim. You not only need to prove that you qualify medically But Also that you actually spend the money on licensed care. Either in your home or an approved facility You can’t simply have a friend or family member take care of you which is what many people want.
How much does long term care insurance cost
Typically long term care policies have a ninety day waiting period before benefits begin so even if you need the care if it doesn’t last more than ninety days you won’t get any benefits from your policy And lastly.
If it turns out that you’re one of the people who die suddenly one day never having needed care or having access to any benefits from your policy the tens of thousands of dollars of premiums you paid over the years will end up being totally wasted You can probably see why people Are Lined up to buy traditional long term care insurance Not to mention That just the thought of needing long term care is something that none of us likes to think about So what’s the solution.
Seven of ten of us are gonna need this stuff the cost of care is incredibly high and it’s going up Every year if you needed for Any length of time as some of us well you can wipe out a lifetime of savings and decimate any legacy you hope to leave behind. Well Recently some life insurance companies are actually developed a solution that I think is the one of the most creative I’ve seen in thirty years.
Here’s how it works You buy a life insurance policy with the specified death benefit for example let’s say five hundred thousand dollars to five hundred thousand dollars Is more than a death benefit though. It is essentially a pot of money that you can access if you need it for long term care if you never end up needing long term care.
The five hundred thousand dollars goes to your family when you die there’s no ninety day waiting period to qualify to get at the money when you need the care. The premiums are guaranteed never to go up and. When you qualify for benefits you can spend the money at anything you want no receipts no requirement that the Kerr be rendered by anyone in particular which means you can pay a friend or family member if you like or you can use the money and throw a party if you want And when you’re on claim. Which requires that your condition be likely to be permanent your premiums are wave which means in most cases you won’t have any further premiums do for the rest of your life.
Dont Buy Long Term Care Insurance
Through a simple three simple new writer to a life insurance policy called the benefit access writer And it doesn’t typically. Add much to the cost to the life insurance which is already priced at the lowest levels in history. You might ask how can they provide so much for so little The answer is Actually quite simple.
Once you qualify for long term care by either having a severe cognitive impairment or by needing help with two or more of the six activities of daily living the eighty else which are eating dressing toileting baiting cotton answer transferring.
On average you only have three and a half years to live. Once you have these conditions if the insurance company knows they’re gonna have to pay you the five hundred thousand dollars three to have years from now Giving you Access to some of the money A little bit early actually doesn’t cost them that much money. And you can access up to two percent of the death benefit each month until it’s all gone so it doesn’t really cost them that much in it doesn’t add that much to the premiums As I mentioned earlier.
I bought two of these policies one for me. And one for my wife a million dollars each I like knowing that my premiums are guaranteed never to go up I like knowing that I have a pot of money that I can use for care without a waiting period if I ever need to care I also like knowing that if I don’t end up needing the care.
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