February 15, 2015 has come and gone. The deadline to enroll into the Patient Protection and Affordable Care Act (PPACA), better known as Obamacare, has passed. Americans as a whole have been required to become better educated about the costs, benefits and the overall wild-world of health insurance. For most of us, this is going to be a challenging topic to continue to understand due to the constant change and unforeseen regulations.
One area of insurance that will continue to become more popular due to our aging population is long-term care insurance. As the baby boom generation moves out of their 50’s and well into their retirement years, long-term care insurance will become increasingly popular and useful. The PPACA does not offer any assistance in this area of care; as such, costs and regulations affecting long-term care can vary dramatically from person to person.
Long-term care insurance can assist individuals in paying for a future/current nursing home or in-house care. Unfortunately, as it appears with everything health-care related, the price for long-term care insurance increased 9% on average last year. The one potential gain or pitfall with long-term care insurance is that rates can vary dramatically from one carrier to another. For example, the American Association for Long-Term Care Insurance provided “yearly rates for basically equal coverage from four insurers for a couple ages 60 and 55: $3,133 for Genworth, $3,138 for John Hancock, $4,301 for New York Life, and $5,148 for Northwestern Mutual.” The final pitfall that consumers must be aware of is that insurance providers require individuals to health-qualify; but not all insurers have the same requirements.
It’s important to speak with knowledgeable professionals about your business’ and individual needs. GBQ works with many qualified individuals and would be happy to recommend a capable advisor.