If you are in your 30s and planning ahead for healthcare and retirement issues, then you already know about long term care insurance. This type of insurance will cover your daily needs in the event long term care is necessary. There are a few things to know about long term care policies if you are considering purchasing them in your 30s. You may want to consider the insurance options available now, that will help you later in life or if a catastrophic issue occurs.
Health Savings with Major Medical
One of the easiest ways for you to plan your healthcare and the financial expectations that come along with it, is to consider a health savings account along with your major medical coverage. Health savings accounts are considered to be one of the leading ways that people in their 30s are starting to plan properly for increasing medical costs they may face. There are several benefits to using a health savings account for long term care. The first is the roll over amount. You can continue to place money into your account and build that amount over several years. The amount that is unused each year will roll over to the next year. You can cash out the amount or keep building the amount in case of emergency.
Long Term Policies
Long term care policies are the goal for many people in their 30s who are preparing for the financial issues that are to be expected with long term care. In, fact the most common strategy used is to have a major medical plan, health savings account, and a long term care policy. Though this may seem like a lot of coverage, it may not be. Long term care policies tend to cover three to five years of care. This means that if you purchase the policy and use the policy exclusively or with a major medical plan, you could run out of funds from the policy fairly quickly. If you have a major medical plan, long term policy, and the health savings account you will be prepared for the financial issues and you will be able to reserve the long term care policy for a longer amount of time.
Financial Expectation Preparation
Currently, the amount of daily coverage needed for long term care is $250. This does not begin to cover the health care needs of several issues related to catastrophic illness. This amount generally covers only the basics of care. If you need long term care, therapy, special treatments and assisted living you could be facing much higher daily coverage charges. The financial expectation for someone in their 30s is to prepare for at least triple the current daily amount of coverage. Though this may seem high, with the rising costs of certain procedures and medications, it is a reasonable goal to reach. Remember when you are planning for the financial expectations of long term care, you will need to keep finances separate. Make sure you are planning for medical care separately than retirement. You want to make sure that you are covered for the lifestyle you anticipate in retirement, special issues that may occur, and the coverage of the health care you will need.