Monday 3 June 2013

Alternatives to Long Term Care Insurance

Long term care insurance is usually expensive. Some insurance agencies have difficulties balancing the price. Since healthcare costs have skyrocketed and continue to grow many long-term care providers need to raise prices to make a profit. Of course, you as the consumer also feel the sting of these price increases.
How badly do you need long-term care?
People live longer lives today and although this is a good thing it is also more expensive. I know it is a terrible thing to say, but living is not free and from a certain age you'll find yourself in the situation of depending on others. Old age may prevent us from doing some basic daily activities like eating, walking, bathing etc. However many people who need long term care are under 65!
It is expensive, but at the same time it can be a necessity. It is difficult to say what the future holds.
On the other hand, long term-care insurance doesn't always offer the best services. You shouldn't relay too much on the services offered by a company. Sometimes, it is better to take matters into your own hands!
What are the alternatives?
One obvious answer is self-financing. If you can afford it, you can pay for any eventual long-term care yourself. If you start early, you can save a lot of money by the time you retire for this purpose. The advantage is that even if you do not need long term care, you don't lose the money!
Relaying on family can also be a good idea if you have a close relationship with your relatives. You should discuss this issue with your children and other family members to see if someone is willing to take care of you if needed.
Life annuities. Purchasing a life annuity when you are younger will give you an additional income source when you are older. This will give you better control over your money, because you can spend the money on whatever you want or need. Life annuities are similar to life insurance, only that they do not pay a benefit to the designated beneficiaries after the insured dies. Instead, the benefit is paid to you,. You will continue to receive regular payments up until you die.
In conclusion, there are alternatives which you should look into before purchasing a policy. Remember that whatever you choose, you should have this possible need covered!

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