With the seemingly ever-increasing cost of healthcare, the importance of making sure that your health care costs will be covered  also increases. Health care can be the biggest expense facing those in retirement, and covering that cost can often drain retirement funds at an alarming rate. Should you or a loved one need any type of long-term care, those costs can virtually wipe out all of your retirement savings if not properly planned for. By including a long-term care insurance policy, many aging adults are able to manage those costs. There are a variety of factors that buyers of long-term care insurance need to be aware of however and by asking the right questions, individuals can make sure that they are investing the right plan that fits both their present and future needs. When looking to add a long-term care policy to your financial portfolio be sure to ask the following questions:

  • What is the benefit amount of the policy? What is the maximum daily amount paid and for how long of a period. If it’s not a lifetime coverage, then what is that limited time period?
  • What is  the elimination period? The elimination period of a long-term care policy basically works much like a deductible, however, it is measured by days, not dollars. The time of illness that you are expected to pay for before the policy benefit kicks in is referred to as the elimination period – these periods range normally range from 20 to 100 days. For shorter elimination periods, expect to pay a higher premium. Also make sure to ask about any “separate spell of illness” clauses that protect you if you should experience a temporary improvement in health.
  • What type of care does the policy cover? Make sure that differing types of facilities – from nursing homes to home health care and live-in nurses – are covered allowing you flexibility based on the needs of you or your loved one.
  • Are there any limitations? Ensure that your particular set of health care needs will be covered with your policy and that you understand restrictions regarding pre-existing conditions, filing claims and adjustments for inflation.

Consulting with a financial advisor can help you with these and other questions regarding the need for long-term care or life insurance and how they can add to your retirement planning. The experts at Advanced Wealth Advisors, LLC provide years of knowledge and experience when consulting with our valued clients with all of their life insurance needs. As qualified investment advisors in Naples and its surrounding areas, our focus is consistently aimed at helping our clients achieve financial freedom.