As experienced Michigan estate planning and elder law attorneys, we often discuss with our client's the importance of having a comprehensive estate plan. A comprehensive estate plan should not be limited to legal documents such as powers of attorney, wills, and trusts. It should also incorporate insurance and financial professionals to make sure you have the appropriate amount of insurance (both life and long term) and investments to best maintain your standard of living into retirement and in the event of disability.
It seems most people are familiar with life insurance and investing for retirement, but few people seem to be familiar with long term care insurance. Some might even ask "what exactly is long term care insurance?" Simply put, long term care insurance is an insurance policy that covers part of the cost of your long term care should require long term care in the future.
As this article states, long term care insurance can make the difference between living out your life the way you want and becoming a burden to your family or a ward of the state. When it comes to purchasing long term care insurance, one should be mindful of the following:
1. Go for higher daily benefits for a shorter time period;
2. If you're in your 40's or 50's, choose 5% compound inflation protection;
3. Buy at least three years of care - and pool coverage with your spouse;
4. If hit with a rate increase, negotiate with your insurer;
5. Don't hide your medical history.
As mentioned earlier, long term care insurance should be part of a comprehensive estate plan. That plan should always include a comprehensive estate plan set up by an experienced Michigan estate planning and elder law attorney such as the attorneys at Barsch & Joswick, PLLC. Call today for a complimentary consultation!