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Battling Disability with Long-Term Care Insurance

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Battling Disability with Long-Term Care Insurance

What is it we can’t avoid? Death and taxes, right? But before the finality of death comes the extra fun part – getting older. As the years fly by, we are blessed and cursed with changes in our bodies and overall health, but there’s an important and simple way to protect yourself financially from the costly and stressful nature of healthcare, and that is through long-term care insurance. A long-term care insurance policy helps cover the cost of care when you have a chronic medical condition, a disability, or a disorder. Some examples of these types of debilitating conditions include Alzheimer’s, Parkinson’s, and ALS. These conditions are measured by one’s functionality in Activities of Daily Living (or ADLs), meaning if a person loses certain abilities to complete an ADL, they begin to qualify for long-term care insurance. 

What are some of the costs you can expect when something like this happens to you? Well, the plan could help cover the cost of your home, a nursing home or assisted living facility, or an adult daycare center. These costs are not included under your normal health insurance policies, so getting the appropriate coverage is essential. If you don’t have insurance to cover these expenses, you or your family could wind up having to pay out-of-pocket for these services, and we don’t have to tell you how expensive this can be. Your savings can disappear and your family’s financial future could be devastated. It’s best to prepare for this situation and avoid putting your children or close family in an awkward position. 

Costs of long-term care insurance in Texas can depend on several factors, including your age, your state of health, your gender (yes, women generally pay more because they live longer), marital status, and the amount of coverage that you elect to get. According to the American Council on Aging, the average cost of a private room at a nursing home in the San Antonio area is $81,030, a tad higher than the statewide average of $76,650. If you do the math, you can see how getting insurance coverage is way smarter than counting on personal savings, because that can run out FAST. 

All of this talk about disability and long-term care may seem like a problem not close enough to your near-future timeline, but planning for this is actually a critical step and dependent on timing because you won’t qualify for most policies once you already have your debilitating condition. After your 50th birthday, purchasing long-term care is definitely on your to-do list. You also want to be sure you are covered the appropriate amount for now, and for inflation in the coming years. Meaning, the coverage that will work for you now won’t likely work for you after 10 years of your debilitating condition, so it’s important to check back in and refresh your policy as needed. Finding the balance of too early/too late is something our agents can help you with when it comes to planning your future and securing long-term care. This type of insurance can be confusing, but we are there to help you with every detail and decision. 

In case you missed it: Check out “Protecting Your Business with General Liability Insurance” to read about General Liability Insurance for Contractors and learn about coverage options for the unexpected.