Momentum - Business to Business Online Magazine MOMENTUM FEB 2018 | Page 27

How To Create a Long Term Care Plan By: Elizabeth Quigley Elizabeth Quigley Insurance [email protected] An unexpected long-term care event can shatter even the most solid retirement plans. Yet, many consumers do not include long-term care insurance in their financial plans, even though this type of coverage is designed to help protect assets and independence. Despite the obvious benefits of having long term care coverage, a lot of people avoid buying a policy because they think it’s confusing and complicated. What they don’t realize is that investing in a policy is quite simple. The final decision is the waiting period, also known as the deductible or elimination period. This is equal to a period of time. For example, if a 30 day elimination period is selected. The policy-holder will be responsible for the full cost of their care for the first 30 days. Choosing a 90-100 day waiting period is a good way to keep premiums lower while limiting out of pocket expenses. When choosing a long-term care policy, the applicant only needs to make four simple decisions. These decisions include choosing a maximum benefit, a monthly benefit, an inflation feature and the waiting period. Developing a plan that includes long-term care insurance only involves making four simple decisions. However, I caution consumers not to make these choices without consulting a trusted insurance agent or financial advisor. Consumers should seek advise from agents who represent multiple solutions from multiple insurers, as they can best match applicants to the best carriers for their desired benefits, cost and health concerns. First choose a maximum benefit, which is the total amount a policy will pay out. For example, consumers may choose to buy a plan for $100,000, $250,000 or more in care. This number is typically based on a period of time benefits will be received. Applicants should consider at least a three- year benefit period because this should cover the average stay in a nursing home. The second decision involves picking a monthly benefit. This is the amount the insurance company will pay out monthly or daily. According to industry studies, the majority of policyholders receive between $3,000 and $6,000 in monthly benefits, depending on the cost of care in the area where they will retire and the amount of care they wish to pay for out of pocket. An expert can help you choose a policy that offers the kind of protection you want at a price you can afford. In just four east steps, you can create a long term care plan that will guard your asserts and your family from the what-ifs of life. After the maximum and monthly benefits have been determined, people should consider inflation protection. Adding this feature helps plans stay current with on-going inflation rates. MOMENTUM / February 2018 26