Many experts are starting to recommend that added protection be purchased to ensure the coverage will be adequate.
Although it may sound a little bit strange to hear that experts are recommending extra coverage for a long term care insurance policy, but that is exactly what is happening on an increasing basis in order to protect policyholders against inflation.
Without that additional protection, some are starting to question the value of this type of policy in the first place.
The executive director of the American Association for Long Term Care Insurance, Jesse Slome, recently discussed the topic and disagreed with the claims that were made that stated that the value of this type of coverage may no longer be enough to make its expense worthwhile. However, it is starting to become clear that as a result of the length of time that a policy is typically maintained before claims might start having to be made, inflation could start to play a role on the size of the coverage that is available to policyholders who make claims.
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The reason is that long term care insurance is typically purchased decades before significant claims are made.
The age of the average policyholder is from early fifties to late sixties. However, at the same time, the average person with long term care coverage doesn’t usually need substantial daily living assistance until he or she is notably older – usually at some point in the eighties. This doesn’t seem like much of an issue until it is considered that the cost of services and supports – whether living in a nursing home, at home, or elsewhere – will continue rising from one year to the next. After twenty or thirty years have gone by, the difference is considerable and the issue may not be noticed until it’s too late as no benefits had been collected throughout that time.
For that reason, what looks as though it would be a promising benefit at the time that the long term care insurance policy is purchased could be worth a considerable amount less once it comes time for a claim to be made.