The common notion today is that everybody should have long term care insurance policy in order to protect themselves financially in the future. In the United States, statistics show that half of all senior citizens over the age of 65 years old will require long term care. Over the next eighteen years, about 80 million Americans will turn 50. By the year 2050, it is estimated that number of individuals using long-term care services will double from 13 million in 2000 to 27 million people.

As the American population gets older, more and more people are requiring extended care, and the government will likely have a difficult time supporting them. With all of that statistics, should everybody really get LTCi? The answer, in reality, is not necessarily. There are specific instances where getting an insurance may not be the best option.

Income

People have this wrong idea that LTCi is tailored for people with low income. This is so untrue. Actually, insurance policy for long-term care is primarily designed for those who have sufficient funds and assets. People who live below the poverty level can easily qualify for government-funded care, so LTCi is not necessary. In some instances, Medicaid is enough to pay for some services related to long-term care, including expenses for nursing home or adult day care, if and only if the individual meets the eligibility for having limited assets and low income.

According to the recommendation of the National Association of Insurance Commissioners, an applicant should apply for such an insurance policy under specific conditions. One is having a retirement income that is at least 20,000US$. The other one is having assets of at least 30,000$US. If you don’t meet these requirements, long-term care insurance may not be the right way to go.

Age and Health Condition

Traditionally, senior citizens are the ones who need long-term care as they are more prone to prolonged illnesses. However, individuals with chronic illness or injury may also need some form of extended care to assist them in performing various daily tasks. LTCi isn’t only for the elderly. Anyone, regardless of their age, may require long term care at any time.

Specifically, a report made by the U.S. Senate Special Committee on Aging says that an individual needs long-term care if he or she has a chronic condition, trauma or illness that limits himself or herself from performing basic self-care tasks, also known as Activities of Daily Living (ADLs). This includes activities such as bathing, dressing, eating, etc.

Some people think they don’t need insurance until they hit the age of 70s or 80s. This is a false assumption. Well, you could still do that, but you would suffer the consequence of paying for expensive annual long term care insurance premiums. Take note that the cost of LTCi escalates as the applicant gets older.

The older you are, the more expensive your long term care insurance premiums become. People with poor health conditions may also be denied coverage, so it’s important to consider getting this type of insurance before retiring or when you’re still healthy.