Long Term Care Insurance
We usually associate it with the elderly. But getting sick or hurt can happen to anyone, at any age.
However, you are correct in your assumption. Most of the people who buy LTC are usually seniors. But that is quickly changing. People in their 50's are now buying Long Term Care Insurance to protect their assets, to maintain control of their future healthcare.
Ever wonder if you should consider buying a LTC policy?
Here are some actual statistics:
1) A home health aid costs about $ 19 an hour
2) An assisted living facility costs about $ 2,968 per month (or $ 35,000 per year)
3) A nursing home costs about $ 206 per day (or $ 72,000 per year)
NURSING HOME COSTS CONTINUE TO INCREASE RAPIDLY TOO!
Why buy a LTC policy?
You work a lifetime to accumulate assets. Do you want to pass your estate on to heirs like children or grandchildren? Or would you rather hand those assets and investments over to a nursing home? You will be required to spend your assets on your own long term care first. Then any government program, like Medicaid , will kick in.
Expecting Medicare to assist? Do some research. Medicare is very, very limited.
Buying a LONG TERM CARE INSURANCE policy
When buying a policy, make sure the carrier is highly rated by AMBest. While that offers no ironclad guarantee, it at least assures you the carrier tries to run a solid business.
The average stay in a nursing home is under 3 years. If premiums are a major consideration, get a quote with a short term benefit period versus one that pays for a lifetime of coverage.
Get a quote with an Inflation rider. As nursing home costs rise, the inflation rider ensures your benefit increases annually.
When meeting with a LTC insurance agent, familiarize yourself with some terminology.
Benefit Period – is the time the policy pays benefits (2.5 years, for example)
Daily Benefit Amount – how much the policy pays ($ 300 per day, for example)
Waiting Period – the length of time before the policy kicks in (90 days, for example)
A typical policy may pay $ 200 per day, last 2 1/2 years and kick in after 90 days after the sickness or injury.
Have your agent give you several different quotes, mixing the daily benefit amount, benefit period, and waiting period to find a policy to protect you and also fits into your budget.