LTC Insurance: Roy Gagaza Talks About How This Asset Can Protect Your Portfolio
From the initial cost to the terms of the policy, long term care insurance isn’t always a smart buy. Then again, for some, it could be the best possible addition to their portfolio. Roy Gagaza tells you more about how to assess your needs.
From chronic illnesses to traumatic injuries, long-term care (LTC) is a necessity for many people today. Unfortunately, standard protections like healthcare insurance and Medicare won’t cover these expenses either. LTC doesn’t refer to your medical needs but rather assistance with day-to-day activities (e.g., personal care, errands, etc.).
Roy Gagaza is a financial professional who is known for his advice to the 55+ community. He helps people with their retirement goals and weighs in on why and how you might consider long-term care insurance to preserve your wealth.
The Majority of People Will Require Long-Term Care Services
According to the Administration for Community Living, the majority of people over 65 will need long-term care at some point. While statistics vary based on gender and age, this ongoing expense can eat into savings that took a lifetime to amass. (Only once you’ve exhausted your personal resources can you apply for financial assistance through Medicaid.)
Roy Gagaza says that these statistics alone don’t mean that you need to shoulder the costs of LTC insurance though. Because the expense can be considerable and you may not use it anytime soon, it’s critical to balance what you’ll be spending now vs. how you might use the policy in the future.
For instance, an individual with chronic health conditions or troubling family history might reasonably conclude that their odds for needing LTC are higher than someone without. For them, it might not even be an option to take the chance.
Look Carefully Into the Policies
These policies are no longer as popular as they once were, as it’s become more difficult for insurers to reap the returns. Of the companies that do provide LTC, the terms can vary widely. Roy Gagaza recommends looking at more than just the price of the premium for clues as to whether the policy will save you money over time.
For instance, you may be able to purchase hybrid policies that result in benefits should you avoid using the policy. Talking to a financial professional can help you decide whether this option makes sense for you and how to go about making the predictions and listing the benefits.
Confusing terms, a lack of insurers, the joyless nature of LTC insurance: these are just a few reasons why people avoid buying policies. Roy Gagaza knows that while it’s not always the first topic of conversation, you’re better off exploring it than ignoring it.