Long Term Care Insurance (LTCI) for baby boomers is essentially the exact same coverage as it is for any other age group. The key difference is the cost. For those who are hitting 65+ the cost of buying a new traditional LTCI policy can come at quite some sticker shock, depending on the benefits selected.
LTCI for those who are healthy and in the 65+ age bracket can easily cost a few hundred dollars per month. There are many variables involved including primarily the daily/monthly available benefit dollars to spend on care, the length of benefits payout (typically expressed in number of years), and inflation protection. These three are the primary drivers of the premiums paid for coverage. For those who are not healthy enough for standard or preferred pricing the costs can increase significantly as well due to the medical history. That part is determined though in the underwriting process.
In addition to the key pricing components several riders can cause price adjustments as well. These riders are typically added to the policy to provide even more/better benefits to the insured if and when they go on claim. These benefits include coverage immediately for home care, payment of in home care at the same benefit level as in facility, and even the accumulation of benefits for home care on a monthly instead of a daily basis. All of these things help really enhance the policy.
In addition to the standard LTCI policies, there are other policies involving annuities and life insurance that allow single large premiums to be used to ensure money goes for care or to heirs when no care is ever paid out. There is still a large cost but for this age population the knowledge the money comes back as an annuity or life insurance death benefit payment instead of going as just a sunk cost. There are many options for baby boomers and even those of other eras as well. These policy types are best when someone has money but wants it to either grow to help with coverage needs or to pay out as an annuity or death benefit to survivors.
Ultimately, a good agent will help buyers pick the plan which best meets their needs. There are several options available depending on the needs and amount of available capital that can be used to pay for different plans. It is good to discuss with the agent the pro and con of each type of plan reviewed before going forward with the application.
We are here to provide professional guidance in picking the appropriate insurance in Texas to meet these needs. Give us a call to help ensure you are adequate protection to protect your assets.
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