Are you a baby boomer? Long-term care is swiftly becoming one of the most important matters of financial security and asset protection. I tell my estate planning clients to talk to their financial advisors about long-term care insurance (LTCi) as they will likely need it some day.
Studies show that there is a 70% chance that people over 70 years of age will need skilled nursing home care someday and the average costs of Nursing Home care is about $12,000.00 per month. Ouch! When we help clients with their estate planning we can work with their financial advisors to ensure that the client has enough coverage for a rainy day.
Apparently, women should not delay when it comes to assessing their long-term care needs as LTCi policies start ratcheting rates up on the longer-living sex. This development was explored by Reuters in a recent article titled “Long-term care policies will soon cost more for women.”
Gender has long been a factor in the pricing of insurance policies, and always for very actuarial reasons. Why? Because women tend to live longer. Still the market for LTCi policies is trying to find its footing. As a consequence, at least one insurer is going to follow the actuarial numbers to higher rates.
Genworth Financial Inc., the largest seller of these LTCi products, announced that it will introduce new rates for new policies procured by women individually by as much as 20 to 40 percent. Note: for now, rates won’t increase on married couples purchasing the same policies and so that’s an important caveat, and strategy, if applicable.
If an LTCi policy makes sense for your unique situation, then it’s certainly worth doing your homework. This latest development is just one more reason why planning is important. It remains to be seen where the market will lead these policies, so stay one step ahead and know what’s right for you and talk to your financial advisor. If you do not have a financial advisor we can give you a referral to quality advisors who can help you with this matter.
Have you or your elderly loved ones got your affairs in order by updating your Will and Trust so that your home and cash assets are protected?? There has been many changes in laws and your life that may have impacted your estate plan. Call us for a review!
If you have any questions or would like to schedule a consultation please call Attorney Patrick Kelleher at 781-871-PLAN (7526) or by email at Pat@myfamilylifeplan.com
Our firm helps families taking care of them for life. We not only “create” their Will and Trust, but we “maintain it and keep it updated” for them throughout their life! The meter is not running for our ‘Client Care Plan’ members!
Patrick J. Kelleher is a South Shore, MA resident and estate planning attorney serving and protecting families and businesses in the South Shore, MA area. For more information on estate planning visit our firm’s website at www.MyFamilyLifePlan.com where you can check out our Blog, free Newsletter library, free Estate Planning Channel on Youtube and sign up for a Free e-Newsletter!
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This article is not intended to provide legal or tax advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney.
Reference: Reuters (February 14, 2013) “Long-term care policies will soon cost more for women”