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  • Now That Met Life Will No Longer Sell LTC Plans…..

    As reported over a week ago, Met Life has decided to suspend sales of their Long Term Care policies.

    So what does this mean for consumers?

    It is said in the industry that the more likely an event is to occur, the harder this is to insure.  In plain english (as my Mother used to say), this means that Met Life stopped selling the plans because of the high likelyhood that consumers will need to have long term care assistance.  This also means that us baby boomers will face the probablility that we will need to have either an LTC plan or a great deal of money in reserve for expenses related to aging. 

    According to government figures, at least 70% of people over age 65 will eventually require some form of help with personal care such as dressing or using the bathroom and 40% will need a nursing home. Nursing homes now cost $80,000 a year on average. It is estimated that future costs vary widely, but may be around $250,000 for a 65-year old couple retiring today. Charles Farrell, an investment adviser with Northstar Investment Advisors in Denver, Colorado, calculates that a 55-year old couple should plan on a million for insurance costs and two years in a nursing home for two.

    Given that one insurer has already “retired” (pun intended) from selling LTC care, we anticpate others may follow suit.  They cannot rescind policies already in effect. 

    So what does this mean for you and I?     My daughter always tells me that she will put me in a nice nursing home when I am old(er).  She is, of course, kidding me, I hope.  If you dont have $250,000 or more in savings dedicated to future health needs it is in your best interests to contact your financial advisor to discuss LTC coverage.

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