What do 40 states have that Indiana doesn’t have?
What do the residents of over 40 states, including Illinois & Michigan, have that those of us who live in Indiana do not have?
And while we’re at it, why do they have it and we don’t? Read on to find out the answer to this mystery.
The answer is…new long term care insurance policies with much higher premiums!
Why don’t we have them yet? The answer to that question is complicated but soon it won’t matter anyway because the new policies with higher premiums are coming to Indiana too. They have already been approved by the Indiana Department of Insurance and any time now the insurance companies will make the transition to the new plans and stop selling the old ones.
Today you can still purchase a policy with the lower rates to save money but that could end any day now. How much savings are we talking about? Thousands! Perhaps hundreds of thousands! Here’s an example:
A couple, both age 55, purchase a plan today that costs about $250 per month. That premium can buy policies that will have a combined total benefit of approximately $820,000 by the time the couple reaches age 85. (If you think about it, that’s a pretty good deal. If you’re paying $250 per month for a car payment I’m pretty sure that car won’t be worth $800,000 in 30 years.)
However, if that couple waits too long and has to purchase the new, higher cost polices, the premium will rise to about $465 per month for the same benefits. I’ll let you do the math on how many thousands of extra dollars that will be. (Hint: It’s somewhere between $50,000 and $100,000)
Or, instead of paying the higher premium, they might reduce the benefits in order to keep the premium around $250 per month. Unfortunately, if they do this their combined benefit at age 85 might shrink to about $520,000, a $300,000 loss in benefits.
Wow! I guess it’s not so bad that in this one thing we lag behind the other states is it? Of course that is about to change.
If you are thinking that long term care insurance might be a good way to significantly reduce your out of pocket cost for care in your home, an assisted living facility or a nursing home, don’t wait any longer. The companies won’t give us much, if any, advance notice when they switch to the new plans.
I can help you avoid the huge premium increase now.
I can help you decide if long term care insurance is right for you. And if it is, how much do you need? How much can you afford? What is the best company for you? What benefits should you purchase?
And if together we determine that long term care insurance is not right for you, I can help you learn more about Medicaid and what it pays for and doesn’t pay for should you need long term care but can’t afford it.
If you are able to self-pay for your long term care needs, I can also make recommendations on how to maximize the use of your income and assets to pay for that care.
Essentially, I can help you plan. And perhaps save a lot of money if you act fast!
Call me at 260-468-2454 to talk it over. No pressure, no hassle, just a friend helping you create a plan for a time when you are no longer able to care for yourself. A plan to help maintain the emotional, physical, and financial well-being of those you love and who love you.
Call me now. (I go to bed around 10:00 pm but it’s OK if you call and wake me up. It’s that important.)
P.S. In Indiana, average cost of long term care is currently between $40,000 to $90,000 per year and growing at 3-4% per year. That means that care which costs $60,000 per year now might cost $150,000 to $200,000 in 30 years. With that in mind, a $500,000 nest egg doesn’t seem as big as it used to, does it? Genworth 2015 Cost of Care Calculator