SYNERGY HomeCare

181 New Road
Suite 213
Parsippany NJ 07054

973-808-3475

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Proudly Serving

  • Passaic County
  • Hudson County
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  • Morris
  • Essex
  • Summit
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  • Montville
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Long Term Care insurance is one of the 5 pillars of insurance

Long Term Care insuranceis one of the 5 pillars of insurance.  Aside from the obvious benefits, itis often used in the form of asset protection.  We all know that longterm care is a pricey venture regardless of age.  It is not uncommon forthe cost of this type of health care to cost more than $5,000/month.  Thebottom line is that the dollars begin to stack up when skilled nursing care isinvolved. With that in mind, let's take a look at how an LTC policy works. As with any other insurance policy, you typically pay a monthly premium. The power of these policies is time.  When you initiate a long termcare insurance policy, you elect a certain amount of benefit for a certainperiod of time.  There are other options that can be added for a fee. Suppose you elect a benefit of $200/day that would pay you for 3 years ofcare.  That would roughly be $220,000 of benefit, and (depending on age)it would cost around $150/month (50 year old male).  It isn't difficult tosee how the benefit far outweighs the cost.  The magic in these insurancepolicies is when you elect one of the growth options for your pool of money($220,000).  If you just chose the smallest growth factor available, youpool of money could grow (tax free) to double or triple the original amount in20 or 30 years, and it would only cost you a few bucks more per month. The last little known fact about LTC insurance is that you don't have tobe a picture of health to get approved.  It is not uncommon for a personwith a terminal illness to be approved for one of these policies, and at areasonable premium.  Naturally, everything goes through underwriting, butthis type of insurance has different guidelines than some of the other productspreviously discussed.  LTC insurance is truly a necessity for all people. If you don't have a policy in place, it is time to get moving.

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