Sound Retirement Radio 401 To Insure Or Not To Insure? Decoding The Need For Long Term Care Insurance
May 16, 2023
David Clemons, a long-term care insurance specialist since 2002, shares invaluable insights on planning for future healthcare needs. He discusses common triggers for long-term care, the importance of timely insurance purchases, and the funding options available. Clemons highlights the pitfalls of self-insuring and explains typical premium expectations for different age groups. He also clarifies the distinctions between Medicare and Medicaid and offers practical advice on navigating care placement options and the implications of federal plans.
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What Qualifies As Long-Term Care
- Long-term care triggers require expected impairment lasting 90 days or more and either cognitive decline or inability to perform ADLs.
- Policies pay tax-free benefits for in-home, assisted living, or nursing care once triggers are met.
Family Crisis Drives Most Inquiries
- Many clients come after a family experience: a son or daughter caring for an elderly parent triggers interest.
- David often receives referrals from financial advisors and attorneys as well.
Health Over Age For Eligibility
- Average age David sees buying policies is about 52, but underwriting and affordability matter more than age.
- Roughly 45% of recent applicants get declined due to health issues.