News 2902 Long Term Care Insurance When What

The prospect of spending several hundred thousand dollars on long-term care needs is scary to many. But don't be frightened into purchasing long-term care insurance. It is not meant for all, but for a specific population of seniors. Here is how to tell if you need it, and if you do, make sure to purchase a good policy from a reputable agent and company. If your assets exceed $35,000, your bank account might be able to withstand a hit from long-term care costs. If the premium on long-term care insurance in greater than 7% of your income, that policy may not be for you. Those are reasons not to buy, but if neither of those apply to you, if your assets are less than specified, look into a LTC insurance policy. The right time to purchase depends on your health, wealth and age, but don't buy a policy of you are younger than 40. On the flip side don't wait until you are over 70 or premiums will skyrocket. Consumer Reports suggests buying between age 55 and 60 if you have a chronic condition like diabetes that could prove incapacitating later, and around age 65 otherwise. If you decide to purchase a policy, experts recommend a "cash balance" plan. This type of policy will give you a daily amount to spend on care as you see fit.

Read more: Q&A: Long-term care insurance (Sun-Sentinel) Do you need it?