Unlocking Financial Security: Long-Term Care Insurance Essentials

Long-term care insurance can be a key element in helping to secure financial stability as you begin to near retirement. As the need for long-term care becomes more prevalent, you may begin to think about incorporating an insurance policy into your financial plan. Here are five things to consider before committing to long-term care insurance:

Why Long-Term Care Insurance Matters:

Long-term care expenses can be a financial challenge for individuals and families. Long-term care insurance serves as protection for your savings and can help fight against the soaring cost of extended care services, whether at home or in a facility. Not only does this help protect your assets, it also alleviates some of the burden on your loved ones.

Five Things to Consider Before Buying Long-Term Care Insurance:

1. Personal Financial Situation:

  • Evaluate your current financial position, including income, savings, investments, and other assets. This can help you determine how much you can comfortably allocate towards long-term care insurance premiums without jeopardizing your financial stability.
  • Remember to consider your anticipated retirement income and expenses, including healthcare costs, as you’ll be paying premiums during your retirement years.
  • Assess whether you have sufficient assets to self fund potential long-term care needs. Your financial advisor should be able to help you determine this as well.

2. Health Status and Family History:

  • Long-term care insurance premiums are often based on your age and health status at the time of application. Younger individuals in good health typically qualify for lower premiums.
  • If you have preexisting health conditions, you may face higher premiums or be denied coverage altogether. It’s essential to understand how your health status will impact your ability to obtain coverage and the cost of premiums.
  • Consider your family’s medical history, particularly regarding chronic illnesses or conditions that may increase your likelihood of needing long-term care in the future.

3. Coverage Needs and Options:

  • Review the types of benefits covered by long-term care insurance policies, including nursing care, personal care assistance, therapy, and medical equipment. Some policies may offer flexibility in choosing care settings and providers.
  • Evaluate optional features such as inflation protection, which adjusts benefit payouts over time to account for rising healthcare costs, and consider whether these features are worth the additional cost.

4. Policy Features and Benefits:

  • Compare the features and benefits of different long-term care insurance policies to find one that best meets your needs.
  • Understand the waiting period (also known as the elimination period), which is the time you must wait before benefits are payable. Longer waiting periods typically result in lower premiums.
  • Consider the benefit period, which determines how long benefits will be paid, and choose a duration that aligns with your expected care needs.

5. Company Reputation and Financial Stability:

  • Research the insurance company’s reputation through consumer advocacy organizations and online reviews.
  • Verify the insurer’s financial strength and stability by reviewing ratings from independent rating agencies such as A.M. Best, Standard & Poor’s, or Moody’s. A financially stable insurer is more likely to honor claims and provide reliable coverage over the long term.
  • Consider the insurer’s track record for paying claims promptly and fairly, as well as its history of rate increases.

By carefully considering these factors and thoroughly researching your options, you can make an informed decision about purchasing long-term care insurance that aligns with your financial and healthcare needs. Consulting with a financial advisor can provide additional guidance and help you navigate the complexities of long-term care insurance policies.

Disclosure:

Marshall Financial Group, Inc (“Marshall Financial”) is an SEC-registered investment adviser with its principal place of business in Doylestown, Pennsylvania.   This newsletter is limited to the dissemination of general information pertaining to Marshall Financial Group’s investment advisory services.  Investing involves risk, including risk of loss.  References to market indices are included for informational purposes only as it is not possible to directly invest in an index. The historical performance results of an index do not reflect the deduction of transaction, custodial, and management fees, which would decrease performance results. It should not be assumed that your account performance or the volatility of any securities held in your account will correspond directly to any comparative benchmark index.

This newsletter contains certain forward‐looking statements (which may be signaled by words such as “believe,” “expect” or “anticipate”) which indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward‐looking statements. As such, there is no guarantee that the views and opinions expressed in this letter will come to pass. Additionally, this newsletter contains information derived from third party sources. Although we believe these sources to be reliable, we make no representations as to the accuracy of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility, therefore.

For additional information about Marshall Financial, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov).  Please read the disclosure statement carefully.

We’ve built Marshall to be a home for realizing your financial future. No matter what life brings, our advisors will be with you to provide the advice you need to stay on track to see your aspirations become reality.