Long term care insurance is not just for those persons getting close the retirement age. Recently, a growing number of young adults in their 20’s and 30’s are obtaining long-term care insurance. The American Association for Long-Term Care Insurance released a study that found a 28 year old who had been receiving benefits from his long-term care insurance for four years. He purchased the coverage at 21 and received his first benefit at 24.
In 2011, the long-term care insurance industry paid $6.6 billion in claim benefits to over 200,000 individuals. Insurance companies noted that there a growing number of younger individuals are purchasing long-term care insurance. The director of AALTCI, Jesse Slome, explains “people often mistakenly associate long-term care solely with nursing home care required by the elderly. After purchasing insurance coverage younger individuals have accidents and are diagnosed with health conditions that result in the need for care for months and often years.” A male who purchased insurance at age 36 began receiving policy benefits at age 40. His claim has lasted over six and a half years and the insurer has already paid out over $700,000. Sounds like the long-term care insurance was a pretty good investment for him, right?
While many of us do not expect to need long-term care, we all know people who have suffered from serious car accidents, work accidents, or the onset of a medical condition which resulted in the need for prolonged medical care. If you were to ask those persons, they likely did not expect to be in their condition either. With the costs of long-term care exceeding $4,000 to $5,000 per month, you may want to consider long-term care insurance as a method of protecting your family from a financial catastrophe. A policy that provides for $164,000 in immediate benefits with the option to increase overage in future years costs roughly $635 yearly for a 25 year old according to the Association’s 2012 Price Index.
If you or loved one needs to discuss the possibility of purchasing long-term care insurance as part of your overall estate plan, the estate planning lawyers at Durden & Mills, PC can assist you. Call us at (706) 543-4708 for a free consultation.
Source: The Sacramento Bee, “Younger Long Term Care Insurance Claimants Examined,” American Association for Long-Term Care Insurances