Dave Ramsey hosts a national radio show host and is an author and personal finance expert. Dave's goal is to help his listeners and readers prepare for retirement and be financially sound.
Ramsey understands being prepared for a future successful retirement includes a plan for the costs of long-term health care, which can be devastating on families.
Long-Term Health Care Costs Rising at an Alarming Rate
"Most Americans will need some kind of long-term care, and Long-Term Care Insurance is the best way to pay for it," Ramsey says. About half of all people who reach age 65 will need some long-term health care. The costs are high and are increasing at an alarming rate.
These costs vary depending on where you live, but costs are going up fast due to several factors, including higher demand for services, higher labor costs, and even labor shortages.
You can review these costs where you live with the LTC NEWS Cost of Care Calculator - Cost of Care Calculator - Choose Your State | LTC News.
Ramsey Says LTC Insurance is the Best Planning Solution
Ramsey says that Long-Term Care Insurance is the best solution to address these ever-increasing costs.
"It also gives you peace of mind and will protect your savings you worked so hard to build. You'll know that if you do become ill, you can afford the care you need and still have enough money left over so you and your spouse can eat. Plus, your kids won't be burdened with huge payments for your care," Ramsey explains.
Ramsey recommends waiting until age 60 to purchase a Long-Term Care Insurance policy since the risk of needing care before age 60 is small. However, experts say that is beside the point as your good health gives you the ability to obtain coverage in the first place.
Waiting Can Make You Ineligible for Coverage
People who wait to age 60 or older to obtain Long-Term Care Insurance have a substantially higher chance of being declined for coverage, according to a report from the American Association for Long-Term Care Insurance (AALTCI), a national consumer advocacy and education group.
Plus, premiums are based, in part, on your age, health, and family history. When you wait, you will experience some changes in your health. These changes in your health could affect your ability to get preferred health rates (the lowest premium possible) or even your ability to obtain coverage at all.
Every insurance company has its own underwriting criteria and pricing. Premiums can vary over 100% between insurance companies.
Is Long-Term Care Insurance Worth Buying
Dave Ramsey gets this question often, and his answer is always loud and clear.
"Yes, long-term care insurance is definitely worth it. In fact, it's a bargain considering what you get in return. The reality is that most Americans simply will not be able to afford the sky-rocketing costs of long-term care. Or they'll have to dip into their savings or retirement funds to pay for it. This is not a good plan," Ramsey says.
Work With LTC Insurance Specialist
Be sure to work with a qualified and experienced Long-Term Care Insurance specialist who represents the top companies to help you navigate the many options, including Partnership Long-Term Care Insurance which offers additional dollar-for-dollar asset protection.
Most people obtain coverage in their 50s.