The public has increasingly become more aware of Long Term Care Insurance and its benefits. Understanding the pros and cons can be a confusing and complex task. Our Financial Expert, Aaron Maguire is here to help us with understanding the fundamentals of Long Term Care Insurance and let us know if it is really worth the cost.

What is Long Term Care Insurance?

1) Long Term care insurance is the care you need when you are no longer able to care for yourself.

· It is an insurance policy that you can buy to pay for expenses should you require home health care or custodial care…the average monthly custodial expenses can range from $4,000 to over $10,000 per month.
· You usually will pay monthly or annual premiums for a certain period of time for the benefit.
· The benefit is usually for a set period of time and certain amount of money

Who should consider Long Term Care Insurance?

2) It depends on your age, health, family history and financial situation.

· The chance of disability grows as we age. Ages 44-54: 23%, Ages 55-64: 36%, Ages 65-69: 45%
· More than half of all nursing facility stays last six months or less.
· The average stay of those who enter a custodial facility is about 18 to 20 months.
· You need to make sure that you can afford it.
· It is easier to qualify for Long Term care insurance if you are in good health.
· If you have accumulated a large amount of investments or assets, it is probably a good idea to see what a policy would cost to protect your current assets.

What should you look out for if you are buying a Long Term care policy?

3) Be Careful.

· Make sure the insurer has a long history and is financially stable. You want to make sure that the insurance company will be able to pay your claim in the event you need the benefit.
· Make sure you purchase the "cost of living" rider or "inflation" rider so your benefit will keep up with inflation.
· Make sure the policy covers the following: Home health care, assisted living, and nursing home care. All three is best.
· If you are married, consider a joint policy. This will enable you to get a discount.
· Make sure you or your attorney reads the LTC policy to make sure it is doing everything your insurance agent says it is going to do for you and your family.

For more on this topic and other financial related issues visit www.reliancewealth.com or e-mail Aaron Maguire with questions.