Many people let the coverage go when it is no longer a part of their employment benefits.
Though many people consider long-term care insurance to be important coverage while they are still employed, it is commonplace to drop the policy at retirement age, when people tend to want to reduce their daily living costs and coast off the funds they’ve saved throughout their working lives.
That said, many financial experts are cautioning that this trend might not be the best to follow.
There are a number of reasons that many financial experts say that people can continue to benefit from including long-term care insurance policies in their retirement strategies. While this in no way reduces potential value before retirement age, the advantages discussed in this article refer to those that can be beneficial to people after they have left their working lives behind.
According to American Association for Long-Term Care Insurance founder Jesse Slome, the best time to start investing in this coverage is between the ages of 55 years and 65 years.
“This product requires that the applicant meet pretty stringent health requirements,” explained Slome in a recent CBS News report. “After Medicare eligibility age, issues start getting found and entered into medical records that disqualify folks from being accepted.”
There are a number of potential benefits to carrying long-term care insurance after retirement.
There are notable benefits that consumers can enjoy from having this coverage after the age of 55 years. They include the following:
- Financial protection – At retirement, the idea is to live off the assets accumulated over a lifetime of employment. The last thing anyone would want is to lose those assets to having to cover the high cost of care should a person no longer be able to care for themselves.
- Financial protection of loved ones – These types of services are costly enough that if the retiree can’t afford them, loved ones will either need to help pay for them or will need to take on the care responsibilities themselves, both of which can be expensive.
- Quality of life – Even if retirement assets would be adequate to cover the necessary care, long-term care insurance can help to ensure that the best services are available, ensuring enhanced quality of life.
- Maintaining independence – Many of these services can help to ensure that as much independence can be maintained as possible, such as being able to remain in one’s own home, or in a hybrid care facility.
- Finding the best premiums – With age, premiums will rise. Moreover, without already having a policy, there is a risk of being turned down for coverage over the age of 70 years. purchasing long-term care insurance earlier can keep premiums to a minimum and have it in place in case it is needed.