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Many people avoid the problem of dependency, because the long-held myths about the use of LTC insurance as an option. Many of the myths around the question of who is or is not a good candidate for LTC insurance. The 2 most common myths relate to the "best" age for a person at the beginning of the planning (which most people believe when they young, they must not be used for long-term care), and a person's net worth (some people an upper of the dollar assets on which people should be automatically self-insure). Once these myths are analyzed and understood, it becomes clear that everyone should be educated about the importance of planning for future long term care need.

Myth No. 1: If I were wealthy enough to my own assets to pay for care, then that is what I do. This is not unlike saying that if I pay more taxes, I should pay more. Wealthy people are very pleased when they discover strategies to reduce their tax liability. But they often fail to understand that the payment of insurance premiums, they could potentially prevent hundreds of thousands of dollars in maintenance expenses. It is important for you to understand that the acceptance of a risk of catastrophic care does not depend on the size of your portfolio alone. You need to know how your real estate portfolio and is influenced by a long-term care event. Once you have this information you can then decide whether it is an acceptable risk to take, or select another option for paying for your care.

Myth No. 2: I can ignore LTC planning, because I do not need a long-term care at any time soon. We do not normally hear, young people need care, or with the diagnosis of a disease that eventually a long-term care, but it can happen? While it is true that most care is done by age 80, it is important that the fact that younger people need care, as in the case of Michael J. Fox and Christopher Reeve late. You may find you need long-term care within a few months from now. It is better to plan with certainty for the long-term care for many years too early than one day too late.

Myth No. 3: I will pay less if I wait to buy LTC insurance. Most people are surprised to see the similarity in the cumulative total premiums over time, regardless of age, in the LTC insurance purchased. In almost all age groups, also taking into account the time value of money, the younger a person when buying LTC insurance, the lower the premium will be paid on an annual basis and cumulative.

Myth No. 4: How long am I willing to pay higher premiums, I can wait to buy LTC insurance. While he waits until some ill-advised "perfect age" to buy, it could be from an accident or disability is diagnosed with a disease that you are not insurable. The number of people who do not happen in the LTC insurance 60-64 year old age group is almost twice as high as in the 40-44 year old age group.

Myth # 5: I am better invest the money that would be responsible for payment for the insurance. This may be true, if you need long-term care for a few months. If you are a return of 6% to $ 1,800 (average annual premium for a younger person), in 25 years, your premiums are invested up to $ 103,984. Unfortunately, with the costs of caring for an average of $ 160 per day (at the very low side!), And with an annual rate of 5%, the account will pay only about 7 months with the cumulative long-term care insurance "savings". And what if you have an accident or an illness, the years of dependency begins shortly after the start of this investment account?

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Free instant access to the complete list of LTC insurance and myths from my book Long-Term Care Planning: Ensuring choice, independence and financial security, visit http://www.long-term-care-insurance-advice. com / chapter18.html

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