COVERITLIVE.COM

11:38

Business Producer - Hi chatters, and welcome to today's financial chat. Certified financial planner Bill Driscoll is here today at 1 p.m. to take your questions about affording long-term care for yourself or a loved one.

11:39

Business Producer - Bill is also a member of the Financial Planning Association of Massachusetts.

11:39

Business Producer - Read these 10 tips on affording long-term care insurance, and then come by at 1 p.m. for the chat. You can also get your questions in now.

12:47

[Comment From Scott]
When is the right time to consider long-term care insurance for yourself? If you are healthy and in your 30s or 40s, is it better to wait or start paying premiums?

12:50

Bill Driscoll - The best time to buy LTC coverage is when your healthy and able to afford the premiums. Normally, people in their 30's have career or family considerations that make affordability an issue. The natural time to buy coverage is when the kids leave the nest so cash flow is strong. But, if one is not encumbered with child-rearing or college funding expenses, it's worth considering LTC at a younger age.

1:02

Bill Driscoll - Some poeple make assumptions about the appropriateness of long term care insurance for their situations. While it's true that people with little income or assets probably shouldn't purchase coverage, it doesn't mean that their children shouldn't consider purchsing LTC coverage on their parents behalf. With families spread across several states, it provides great peace of mind knowing that funding for quality care is available for their parents.

1:07

[Comment From Fred]
I was diagnosed with cancer 6 1/2 years ago. I went through chemo and many surgeries but have been cancer free since. Will it be nearly impossible for me to pay "affordable" LTC? I know what the life insurance companies want for premiums and they are outrageous. I am 43 (in a week).

1:08	Bill Driscoll - LTC underwriting is very differnt from life insurance underwriting. LTC insurers are more concerned that you'll linger, rather than die. So, if you've been cancer-free for 6 years, it's possible to get LTC coverage at areasonable price.

1:08	[Comment From Mary] My policy now costs $3139. It will continue to rise in price every year, no doubt. But is it truly worth ?

1:11

Bill Driscoll - Generally, LTC premiums do not increase every year. Insurrers that issued policies more than a few years ago discovered something uneexpected: that people who buy LTC insurance keep the policies. Unlike other forms of insurance, insurers make less money from people who drop coverage before making claims. That's one reason why prices of older policies have risen. To soften the blow, some of these insurers spread the increases over 2-3 years. Going forward, it's unlikely that the prices will increase so frequently. But, expect increases every 10 years or so.

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