Long-term health care coverage a hidden casualty of economic slide
The current economic recession will likely increase the need for long term care insurance among moderately affluent people, according to physorg.com. The cost of long term health care in the final years of life can easily run into hundreds of thousands of dollars. Most of this cost is not covered by other health insurance and states are empowered to collect these fees from the estates of deceased residents. Financial advisers believed that people with liquid assets above $500,000 do not need this coverage but viewed long term care insurance primarily as an estate preservation tool among wealthy people. Now that the value of their assets has dropped sharply, more people recognize the risk of outliving their assets.
Individuals in the lower middle class range have typically been more likely to purchase long term care insurance. But the recession is increasing financial pressure on these people and the cost of insurance premiums can become a serious burden. Policies that lapse during the recession, of course, would provide no protection. Some insurers offer single premium policies that allow a segregation of long term care assets from other assets with the guarantee that a drop in value does not hurt economic value.
In some cases it is possible for healthy individuals to change a long term care policy to reduce or restructure premiums. In this case, it makes sense to compare he current premium to the cost of other polices with the same benefits. Online quotes from competitive companies are available at insureme.com
and an agent can help determine whether a replacement makes sense.