First I would like to talk about what is long term care and which services do it cover. Long term care is taking care of your daily activities like bathing, dressing, eating and many of such activities. Long term care is required when you become seriously ill and are unable to do your regular activities. At that time you would need a help from a nurse to do such activities.
So how much does it actually cost for a nurse to help you out? A skilled nurse would charge about $200 a day which would come out to be $73000 a year! How are you suppose to pay this astronomical charges?? Your disability payments and your savings can be used to pay off such expense but long term care could erase your retirement nest egg in moments! To save your retirement nest egg and your savings you could buy a Long term care insurance. Long term care insurances pay you for such expenses in case they would incur.
Most of the long term care is not covered by health insurance and not even by Medicare so all of the expense is given by you.. At that time Long term care insurance comes in the picture and it pays you for all the expense which in turn you pay to the service provider. But how costly could this insurance be?? For most of the people over 55 and closing in on retirement or already retired are worried about the insurance cost as they are already buried under the premiums for health insurance!
Premiums for Long term care can vary by age and they vary greatly. The insurance company can also deny you the Long term care insurance based on your medical records. The main idea should be to buy the insurance as early as possible to avoid high premiums. The premiums also depend on which type of policy you end up with. I will give you details of some of the points you should check for in your policy and consider them before buying policy:
- Inflation Protection: The most expensive product and most valuable. Most of the other policy may not be able to cover as much as this type of policies cover as it is protected from Inflation. Insurance agents may try to sell other products but by far this product is the best.
- Look at how many activities are covered in the policy. Sometimes only few of them are listed and the others are not covered.
- Before picking the Nursing home costs check in your community what are the cost of nursing homes. The prices of Nursing homes vary greatly by area and you should be covered for prices in your area.
- Give a look at a 4 or 6 year coverage periods. Those are long coverage’s and could be beneficial. Normally nursing home stays are smaller but you can not bet on it. If you have enough money life time coverage policy is also a good option.
- Make sure the plan covers services at Nursing home and at home or assisted living community.
- No company are guaranteeing premiums yet and they could change any time so be ready for at least 30% increase in future.
Long term care insurances can be costly but they are worth every penny. For further estimation of your cost for long term care insurance visit the website https://www.ltcfeds.com/ltcWeb/do/assessing_your_needs/ratecalc and you will be able to calculate your premiums for different policies. Be assure that there are different companies giving insurances at varying rate and you should check with others before taking your policy. The above website has been forwarded for rough calculation of your premiums.
Long term care could be a very expensive affair if one has to face it. It is much better to be prepared for it rather than caught in its web. I would sincerely suggest readers of all ages to consider Long term care insurances and secure your assets.