I am being approached by many people who purchased long-term care (LTC) insurance many years ago. They bought the LTC insurance from their life insurance agent, their financial planner, or their home insurance agent – not a specialist in LTC. These agents knew life or home owners insurance, but often just “dabbled” in long term care sales. Maybe they had just one company’s product to sell. Often, they sold the policies for a cheaper price because they didn’t include the all- important automatic inflation on benefits.
Long term care costs have been increasing more quickly than inflation, doubling almost every 15 years.
For example, a nursing home that charged $4500 a month 18 years ago, now charges over $10,000 a month. Costs may increase even more quickly in the future because labor costs are likely to increase. Since we have nearly full employment, employers may need to offer higher wages to attract the needed workers. We also hear talk about increasing the minimum wage to as much as $15 per hour, so costs could increase even faster.
If you have an older LTC insurance policy that doesn’t include inflation coverage, there still may be something that you can do. If you are considering investigating LTC insurance – do so with an expert. You need an expert who knows the costs, understands inflation and knows what the options are for people with these kinds of policies, so that the expert can help you determine how much of the bills you can pay yourself. That way, you don’t buy too much insurance.
I am an expert in long term care financing. I have been doing nothing but LTC planning and financing for over 25 years. I am happy to review your policy. I can help you if there are problems with your policy. I can help protect some of the money if LTC is needed and you have not prepared in advance. Many of my clients have been referred to me by their financial planner or their attorney. Learn more about me at www.thelongtermcareguy.com.
If you want to investigate how to deal with LTC, call (920) 884-3030. Let’s plan a time to investigate together.