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Money Matters: Long Term Care Insurance

Money Matters

Last week we talked about long term care. We have an aging population and more people are going to need help doing the things that they can no longer do and today, we are talking a little bit about long term care insurance. Talk to me about just how that is, how you can qualify to buy it.

The products been around for approximately thirty years, depending on the company, there use to be a lot of players in the market. There is less and less because the chickens are kind of coming home to roost. When they priced it thirty years ago, they didn't know how many claims they were going to have. So, it's really more and more companies are getting out of the business but effectively, what you do, it's an insurance contract that you buy daily benefit amount. Like, you can say, I want to buy a hundred dollars a day or a hundred fifty dollars a day, two hundred dollars a day and you have to qualify. You go through some underwriting. They ask you some questions. They have some cogitative questions and that type of thing and so you basically, instead of using your own resources, if you need care, you are putting the risk on the insurance company.

So, the insurance company, basically were playing the odds that in the long run they would make money on it but again, we have such an aging population, you say it's getting harder to find this kind of insurance.

Well, there still a hand full of really good carriers that sell it but, the price as gone up, but the bottom line on a new product you don't know the claims until you get there, what it is going to amount too. But a lot of our clients we talk about it with all of them because it is very important, who's resources are we going to use if that risk arises.

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