A lot of the information found online that pertains to long-term care insurance planning can be old, outdated and frankly quite irrelevant. That is especially true if you are the things i refer to as an older woman on her own. That’s someone who is in her late 50s or older, happens to be single, divorced or widowed. Perhaps worst of all, little of the information offers valuable insights into methods to reduce the cost of this important form of future protection.
Women on their own possess a special need to consider long-term treatment planning. Note that I have not stated long-term care insurance here – just emphasized the planning aspect. Below is why.
First, it’s a commonly recognized fact that women are far more likely to reside long lives. The latest life expectancy for ladies is 84 (2018 statistic). Yet this actually is a bit misleading. A female turning 65 today can expect to live, on average, until 86. 7. Achieve your 80s and you have an increased possibility of reaching 90, 100 or even older.
Living a long life brings a number of consequences. Perhaps the greatest is the really real risk of needing extensive care services at some point towards the finish of your life.
The second reason women on their own encounter a very real need to plan is that unlike their counterparts who are wedded or have partners, women on their own do not possess what many refer to as that built-in caregiver. Contrary to what many people associate with the term long-term care, many care is provided in the home environment, and much of it can be provided by the spouse or partner.
So , to get older women on their own, undertaking a few long-term care planning is essential. But that planning today can be misleading when one bases their decision on older data and info.
According to AALTCI, the national sector trade organization, here are some current facts that women should be aware of.
Women have a far greater need for long-term care services. Several 68 percent of all long-term care insurance policy claims are made by females.
Over one-third of long-term treatment insurance claims made by women are for services received in their own home. Only 20 percent are for care in a skilled nursing facility.
Because women are more likely to need extensive care and make more states than men, women pay more for comparable long-term care insurance policies, often as much as 40 percent more.
For all of these reasons, women would certainly benefit from taking a somewhat different approach when considering long-term care insurance. Completely different from what many refer to as the ‘off the shelf’ product recommendation ne typically is presented. This explains the following basic policy provisions, the starting $150-per-day benefit amount, a 3-year policy provision coupled with the three percent annual growth associated with benefits to keep pace with pumpiing.
For the women on their own, some extensive care insurance protection is always likely to be better than having none at all. Having some will provide faster entry to care, greater options in terms of selecting caregivers and care options. By some insurance, we mean having insurance to pay a portion of the cost making use of retirement savings and Social Protection or other retirement income since the supplement.
An analysis of long-term care insurance prices conducted in January 2019 found that the off-the-shelf approach for a single woman age 60 would cost nearly $3, 000 a year.
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A price many women on their own with fixed incomes simply cannot pay for or choose not to afford. Thus they go without any plan.
Rather, listed below are two more affordable options worth considering. A policy priced with an initial monthly benefit of $3, 500 growing at three percent annually with a benefit that will grows from an initial $84, 500 at age 60 to $198, 500 at age 90. This can be a significant amount of insurance benefits to cover home care and certainly many months if skilled nursing home care is required. The annual premium cost would be $1, 800-per-year. This amounts to a 40 percent yearly savings plus an amount of coverage that may well be sufficient for many women and certainly will be better compared to having no coverage at all.
Or even, consider a larger pool of benefits that begins at $175, 000 at age 60 and grows in order to $265, 000 at age 90 because of an annual 1 . 5 percent inflation growth option. That benefit will nevertheless cost less than $2, 150 per year — a 28 percent cost savings compared to the off-the-shelf approach..
The bottom line for women on their own is to consider far more than the off the shelf approach to buying a long-term care insurance policy. You have a right to ask for multiple examples of policy illustrations and pricing from the insurance professional you work with. Ask them to propose a Good-Better-and Ideal scenario with low, medium plus higher monthly premium costs.