YOU ASK:

Do I need to buy long term care insurance?

WE ANSWER:

The answer would be up to you.

Ask yourself the following questions:

  • Can I afford to pay for long term care? Do you have enough savings to pay for a nursing home or in-home care? How long do you think you savings will last? According to the Council for Disability Awareness, the average length of disablement is 30 months. Can your savings pay for care, as well as your day-to-day expenses for this long?
  • Do you have enough assets for you to liquidate in case you need additional funds to pay for this? Experts say that those who have assets of two million and above need not buy long term care insurance, especially if these assets are liquid. If your assets fall below this amount, then you need to consider getting a long term care insurance policy.
  • What is your health condition? What risks do you face in your work? How likely are you to need long term care? Study your family's medical history to see what diseases you are particularly susceptible to. According to surveys, 19% of Americans who are 65 years old and above will experience some kind of physical impairment. For those who are 85 years and above, 55% will need long term care. However, just because you're young does not mean that you won't need long term care. Injuries caused by accidents may cause you to need long term care.

    Long term disability claims were mainly composed of musculoskeletal or connective tissue disorders, which includes impairments with the joints, muscles, tendons, neck and back pain and problems with the foot, ankles and hands. Other claims were from cancer, injuries and accidents and other diseases.

  • Do you have an employer-sponsored plan that provides for long term care in case you are disabled? This can cover you for until your retirement.

Examine your answers to these questions to determine your need for long term health care insurance. If you can answer with confidence that you have enough provisions for the eventualities being covered, then you don't need insurance. However, if you don't have enough savings, don't have much by way of assets and also do not have an employer-sponsored plan, then you will need to seriously look into buying this kind of insurance.

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