It is no secret that life expectancy is increasing for Americans across the country, and that includes us here in Kentucky. Many people are considering long-term care insurance as a potential stopgap measure to assist in old age. According to the AARP, it is important to take a close look at your financials before you decide to invest in long term care insurance.
While living to be in your sixties or seventies used to be considered “advanced age,” in modern times many of us are living into our 90s and beyond. This makes the possibility of needing long term care more and more likely, and assisted living homes are not cheap. Those of us with children may plan to move in when independent living becomes too much, but this is not always possible; with the reality of degenerative diseases like Alzheimer’s, you may need more help than your family can readily give.
This is why it is important to take a hard look at your assets. Depending on your health and well-being, it is possible that you will not need insurance at all. Generally speaking, if you are pulling less than 4 percent from your savings each month to cover your living expenses, you may not need to invest in long term care insurance. Plus, if you have additional assets like home equity, that could help in covering potential long-term care should the need arise for it.
Those who do invest in long term care insurance often go for the “hybrid” policies, where in the event that you pass on without needing to tap into it, your heirs will get back at least part of the money that you have invested into the insurance.