Start Thinking About Long-Term Care Insurance Now


Younger adults are now looking to buy long-term care insurance as a way to balance the possible need for nursing home or in-home care with the considerable cost of those insurance premiums. Understand that people who already have serious medical conditions are ineligible for long-term care insurance, which requires health assessments before applicants obtain coverage. Some question whether it makes financial sense to you, if you are still in your twenties or thirties, to purchase a long-term care policy at a young age.

The insurance will provide benefits due to accidents, health issues    

Long-term care is not just for those persons getting close to the retirement age. Recently, a growing number of young adults in their 20′s and 30′s are obtaining long term care Hamilton insurance. The American Association for Long-Term Care Insurance released a study that found a 28-year-old who had been receiving benefits from his insurance for four years.  He purchased the coverage at 21 and received his first benefit at 24. Younger individuals have accidents and are often diagnosed with health conditions that result in the need for care for months and often years

In 2011, the long-term care insurance industry paid $6.6 billion in claim benefits to over 200,000 individuals. One of the advantages for younger people is that they tend to qualify for coverage more easily and pay lower premiums. A policy that provides for $164,000 in total benefits over time before it runs out, with the option to increase coverage in the future, costs roughly $635 annually, or about $53 a month. You should consider buying the insurance if it fits into your budget since premiums may be quite low at a time when you may not own a home or have children.

Escalating costs for care is a risk for the uninsured

While you may not expect to need long-term care, we all know people who have suffered from serious car accidents, work accidents, or the onset of a medical condition, which resulted in the need for prolonged medical care. If you were to ask those persons, they likely did not expect to be in that position, but were fortunate enough to have purchased a policy in case the need did arise. With the costs of extended care exceeding $4,000 to $5,000 per month, you may want to consider long-term care insurance as a method of protecting yourself and your family from a financial catastrophe.