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Birthdays come and go, time flies before we realize. We buy homes, have children, save for college and other expenses. But many of us don't consider the importance of protecting our independence when we retire or protecting our retirement savings from the cost of escalating health care expenses. Most are surprised to learn that one year in a skilled facility today averages $75,000 per year and that Medicare does not provide for this payment. This amount would substantially or totally deplete many retirement savings accounts.
So, before your next birthday, do yourself a favor. Investigate a long term care insurance plan that will not only protect your retirement savings but provide care options allowing you to choose whether you remain at home or go to a care facility. Long term care insurance is NOT nursing home insurance like many believe. It provides the option to remain at home and receive care, or if one wishes, to live in a care facility.
For each birthday that passes, annual premiums rise. The "cost of waiting" to purchase a policy can be substantial. For someone who is 55 years of age, the cost of waiting until age 60 can increase the premium by up to 50% especially if quality of health changes. This responds to a concern I hear frequently about having to pay for insurance until "I need it." Would you rather pay $1,000 a year for 40 years or $3,000 a year for 20 years? Paying a total premium of $40,000 versus $60,000 results from waiting to purchase a policy at the age of 40 versus 60; in today's costs, under either scenario, the total premiums paid would be recouped with less than one year of care provided.
So, before your next birthday, contact me and I can show you the differences in policies, premiums and how purchasing a policy before your next birthday can save you money.
Copyright 2011 Pamela D. Wilson, All Rights Reserved.
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