Pros and Cons of Long Term Care InsurancePros and Cons of Long Term Care Insurance

The pros and cons of long term care insurance need to be weighed before a policy is purchased. In this article, we will go over several pros and cons of long term care insurance to help you when making a decision about purchasing a policy.

Pros

Long term care insurance helps you to prepare for unexpected hardships due to a decline in your health. The first hardship it helps prevent is the stress created for the family member(s) who would be responsible for care.  This includes the emotional, the physical, and financial stress of providing a loved one with long term care.

Secondly, LTCI helps ensure that you or your loved one gets the level of care necessary. Restrictions for providing the best level of care may include living far from the person needing care, lack of time, or lack of training. LTCI will allow the sick person to get the assistance they need without exhausting their resources. Additionally, it will give them control over the location, form, and quality of care they receive.

The last hardship LTCI helps prevent is related to finances. The large price tag for long term care can quickly deplete whatever resources you have. This can leave your surviving spouse or other family members in a tough spot. LTCI helps avoid this by providing you with coverage for extended care.

Cons

As with any decision you make, there are drawbacks to long term care insurance that you need to consider. The main consideration is price. LTCI policies can be expensive. Such a policy may not be financially feasible for everyone. If you decide to purchase a policy and later find you are no longer able to pay the premiums you risk losing the coverage you were counting on and forfeiting the premiums you already paid out.

Second, you need to factor in premium hikes. LTCI policies do not come with set annual premiums. The average policy is held for at least ten years so a premium raise is likely to happen. You will want to make sure your budget can handle such raises.

The last con to take into consideration is the insurance company discontinuing their coverage. In recent years, large losses due to claims have resulted in several large insurance companies closing their LTCI departments. This left unsuspecting people without coverage.

Purchasing a Long Term Care Policy

Weighing the pros and cons of long term care insurance can help you determine if a policy is right for you. If you need additional assistance deciding, you can meet with a qualified insurance agent.

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