Health Insurance
Quotes & Rates
Long Term Care Insurance
About half of all Americans will need some type of long term health care. Being ready for this phase of your life can insure that you not only have a better quality of life and the best health care, it makes things easier on your family and loved ones.
What You Need in a Long Term Care Policy
Nursing homes can cost over $70,000 per year! Not many of us have that kind of money when we retire but long term care insurance can ease the burden. The trick is to choose a policy that isn’t obsolete by the time you need to use it.
Prices don’t stay the same from day to day, let alone year to year. Make sure that you have a policy that raises your benefits to match inflation. If you need a nursing home twenty years from now, the prices are sure to be at least 10-20% higher than they are now.
Get a policy that allows you several options. Long term care doesn’t necessarily mean a nursing home; you may just need some assistance with everyday needs and a home health nurse to visit on a regular basis. Make sure your policy covers these needs as well as allowing for an assisted living facility. The more options you have that are covered by your insurance, the more you’ll be able to enjoy life independently.
Be sure that your policy provides at least 70% of the cost of a nursing home or services that you might need in your home. Saving money by paying for the cheapest daily benefit might seem like a good idea now but you’ll regret it when you need the services. You should also make sure that your policy lets you choose a licensed health care provider to manage your care and not a representative of the health insurance company.
What Will Your Care Cost?
There are a lot of variances in long term care costs. It can depend on the state you live in and what type of facility you choose. It will help you estimate how much coverage you need if you familiarize yourself with how much nursing homes in your area charge. You should also find out how much home health care and assistance will cost in case you can be at home but need help.
Purchasing a Policy
Depending on when you get a long term care policy, premiums will vary. The earlier in life that you buy the policy, the lower the premiums will be. The benefit amount also affects how much you will pay. Obviously, you should get a long term care policy as early in your adult life as possible.
Check with your employer to see if they offer a long term care policy as part of or in addition to your benefits package. If you or members of your family have worked for a state, local or federal government agency you may be able to get a policy through those sources. If you are part of a membership organization you may be able to get one through them or find one that you are qualified to join in order to access that part of their benefits.
It is very important that you choose an insurance company that is financially solid! Check their financial ratings before you decide who to buy your policy from. Ask your friends and relatives which company they are using and if they are happy with their decision.
You may be able to access group long term care through your employer. Premiums for this type of plan can be lower than normal because the risk is spread over a group rather than an individual. Even if you are young, having a group policy can be very advantageous but compare the cost of an individual policy with that of the group policy to make sure you don’t pay more than necessary.
Be sure that you know what your policy’s elimination period is. This is similar to a deductible and is the amount of time you have to be responsible for the cost of care before the insurance takes effect. Some policies can have an elimination period as long as three months! Of course, the longer the elimination the lower your premiums will be but be sure that you’ll be able to afford the cost of care until your policy takes effect.
Don’t Skimp on Other Insurance!
Just because you have a long term care policy don’t assume you don’t need life, disability and health insurance. Although a long term care policy can help if you need assistance while you are disabled, not having disability insurance could be disastrous. Obviously, if you are unable to work due to disability you’ll need all the assistance you can get so don’t drop your disability insurance policy. Likewise, life insurance will help pay for your final expenses and pay any leftover costs not covered by your long term care policy.
People of any age can take advantage of a long term care policy. Unfortunately, many young people every year have to move to assisted living facilities or nursing homes due to injury or illness. Having a long term care policy in these instances is very helpful.