Our Wealth Advisors know that at any given moment you may face a variety of risks. Risks to your life, to your health, and to your property just to name a few. Most of these risks can not simply be eliminated, but you can take actions to provide safeguards against the resulting financial losses. Insurance can provide a safety net, and if your coverage is sufficient, insurance can also provide financial security to you and your loved ones. Types of insurance coverage available include:
- Life insurance
- Disability insurance
- Long-term care insurance
- Business Insurance
- Annuities
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Long Term Care Is A Woman’s Concern
According to a recent survey by the American Association for Long-term Care Insurance, the following are the top motivators that prompted current long-term care insurance policyholders to purchase their policies:
52.1% – planning for retirement
34.7% – protecting their assets
23.6% – influenced by an experience with a loved one who needed LTC
8.1% – security or peace of mind knowing future needs would be met
Women have a natural advantage when it comes to longevity, outliving their male counterparts with an average life expectancy of 82 years for women compared to 77 years for men, as reported by a 2015 study by the CIA. The gift of a long life is certainly precious, but as the years advance, health and mobility can often fail to keep pace.
- Women’s longer life expectancy places them at a higher risk of needing long-term care. [1]
- Women often assume the caregiving role for their spouses or family members, which can be physically and emotionally taxing. [2]
- When women outlive their partners, they may lack a caregiver, intensifying the need for accessible and affordable LTC options.
Given this situation, insurers set their premiums accordingly, resulting in a 30-50% increase in price for single women than for single men [3]. The American Association for Long Term Care estimated that the annual premium for a single male in 2020 was $1,700, while being $2,675 for a single female.[4] It’s essential to recognize that the long-term care insurance averages presented earlier are based on data from leading insurance carriers and represent a general overview of the landscape. However, these costs can vary significantly, influenced by several critical factors:
- Health: Your current health status plays a pivotal role in determining the cost of your long-term care insurance. Some pre-existing medical conditions, such as muscular dystrophy, cystic fibrosis, or dementia, may lead to disqualification for a policy, as insurers could potentially face substantial losses. In essence, the healthier you are at the time of policy acquisition, the less likely you are to require a claim, resulting in lower premium costs.
- Age: Age is a substantial influencer in long-term care insurance pricing. Generally, the older you are when you purchase a policy, the more you can expect to pay. This is due to the assumption that older individuals are likely less healthy and closer to the point of needing the covered assistance. That’s why experts, including the American Association for Long-Term Care Insurance (AALTCI), suggest that individuals commence their search for long-term care insurance between the ages of 52 and 64.
- Marital Status: For couples, joint coverage typically results in lower premiums compared to the cost of two separate policies. This collaborative approach provides cost-efficiency and offers the flexibility to pool benefits, allowing partners to use them in any combination as needed. Furthermore, it brings peace of mind as couples venture into the later stages of life together.
- Carrier Policies: It’s crucial to note that each insurance carrier establishes its own pricing structure and underwriting standards. Consequently, the cost of the same benefits can vary significantly from one insurance company to another. Therefore, it’s valuable to obtain quotes from multiple carriers to compare and contrast their offerings. In this endeavor, seeking assistance from a seasoned long-term care insurance agent or wealth management professional can be particularly beneficial, as they can gather quotes for you and help you comprehend the distinctions between policies.
To mitigate risk, start your exploration of long-term care insurance earlier than you might initially think. The younger you are when you purchase a policy, the more cost-effective it tends to be. Collaborate with Wealth Advisors who can help you identify the most suitable insurance option for your unique needs. Remember that the cost for the same benefits can vary significantly from one carrier to another. Our Waelth Advisors can help you explore potential discounts, such as those associated with memberships or bundling policies from the same carrier. Over time, these savings can accumulate significantly.
For women living independently, whether single, divorced, separated, or widowed, securing long-term care insurance is particularly crucial. Women are known for their intelligence, determination, and resilience, making it even more important to channel these qualities into action by safeguarding their financial future. Moreover, if you’re married to a husband who believes he won’t need long-term care insurance, explore shared care plans that can provide coverage for both of you. Preparing for unforeseen circumstances is a prudent decision that both partners will appreciate in the long run.
Navigating the Hazards of Life
InVestra is here to help you navigate the vast sea of Insurance and Annuity products available in the market today. Why leave these important decisions to a captive insurance agent or insurance company? It may take more than the “15 minutes” that other insurance providers promote, but it will be worth it.
