Since more than 1 in 5 Gloucester County households include residents over age 65, Long Term Care should be a serious consideration in your personal financial plan.
Just like any insurance, you can always argue that you wasted your money if you purchase a Long Term Care policy and nothing bad ever happens to you. Instead, remember that you buy insurance to cover all the “what if” situations in your life. As you get older—and government data shows that many Gloucester County residents will reach their 78th birthdays—the risk of encountering those “what if” situations goes up.
Over the years, I’ve had many clients who died without using their Long Term Care Insurance benefits. But my firm has also had clients who fell ill and, if it hadn’t been for their Long Term Care Insurance benefits, would have been forced to leave their homes. Those benefits paid far beyond what their own investments would have provided for expenses related to in-house care.
The group that seems to most use Long Term Care Insurance benefits are the clients who develop Alzheimer’s. The insurance benefits provided for placement in memory care facilities far beyond the reach of their own savings.
I suggest that you consult with your financial advisor about the various policies available, as well as your ability to self-insure should you fall ill. Assess whether you think you’ll want to stay in your house should you ever become unable to easily walk or care for yourself. For some people, this is of paramount importance. For others moving to a retirement facility is something already part of their plan.
Also, consult with your doctor about your potential risk for developing Alzheimer’s Disease. We now know more than ever about how much it might cost for specialized care. If you find that your own funds will not cover those costs, then you should seriously consider Long Term Health Care Insurance.
In the end, paying for any type of insurance is about knowing that you are covered if the unexpected happens. If Long Term Health Care Insurance is in your budget and it allows you to sleep better, then it is a good deal.
If you have questions about Estate Planning in Gloucester County, New Jersey, feel free to contact our office for a free consultation.