Do I need long term care insurance?

The answer depends upon your circumstances and the analysis is not an easy one. Let us explain.

 

The purpose of long term care insurance is to assist in the payment of long term and assisted care costs.  We are talking about a stay in a skilled or assisted care facility. Long term care costs in Colorado are significant. Take a look at our variouis Special Reports.  Specifically, look at those listed below:

 

  1. 2015 Medicaid Long Term Care Planning Guide

  2. 2015 Medicaid numbers

  3. Myths about Medicaid

  4. Community Spouse Planning Considerations

 

 

Each of the above Special Reports will give you valuable background in deciding how you want to provide for the payment of long term care costs. As you can see the options are numerous.

 

Long term care insurance, simply put, is a way to avoid paying the cost of long term (or in some policies assisted care) should you need it.  Will you need long term care?  Our rule of thumb:  If you are age 65 and a male the chances of needing long term care are about 1 our of 3. If you are female the chances are 2 out of 3. If you are male your average stay might be 9 months and if you are female your stay in a skilled facility could be 30 months.  With average cost of long term skilled care in Colorado for 2015 being $7,249 per month this means the AVERAGE male couild spend $43,434 and the AVERAGE female could spend $217,380.

 

If you are average then you must ask yourself:

  1. How much insurance coverage do I need?

  2. If you have sufficient resources to private pay, why not private pay?

  3. Isn't buying long-term care insurance mostly to protect the resources of the surviving or community spouse?

  4. If so, how much do they really need to protect and will they have enough to live on without insurance?

  5. How much do you need to leave to your heirs and if you do choose to private pay will you leave your heirs a sufficient amount to cover their needs or what it is you wish to leave them.

It should be noted, not everyone needs long term care insurance as Medicaid and private pay are viable options for many.  The decision is not an easy one and does require considerable thought.

 

 

Brown & Brown, P.C. 1250 East Sherwood Drive, Grand Junction, Colorado 81501 (970)-243-8250 (tel), (970) 241-1144 (fax)  

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