Long-term care insurance
We usually connect them with the elderly. But disease or harm can happen to anyone of any age.
However, you are right in your assumption. Most people who buy LTC are usually older. But this is changing fast. People in their fifties are now buying long-term care insurance to protect their assets and maintain control over future health care.
Have you ever wondered whether you should consider buying an LTC policy?
Here are some actual statistics:
1) Home health care costs about $ 19 an hour
2) The cost of a living facility assists about $ 2,968 per month (or $ 35,000 per year)
3) The cost of the nursing home is about $ 206 per day (or $ 72,000 per year)
Nursing home costs continue to increase very fast!
Why buy LTC policy?
You work for life to accumulate assets. Would you like to transfer the estate to the heirs like children or grandchildren? Or would you prefer to hand over these assets and investments to a nursing home? You will be asked to spend your assets on your long-term care first. Then any government program, like Medical assistance for the poor, I'll kick in.
Expect medical care To help? Do some research. Medical care is very limited.
Buy long-term insurance policy
When purchasing a policy, make sure your carrier is rated highly by A.M.Best. While this does not provide strict assurance, at least it assures you that the carrier is trying to run a strong company.
The average stay in a nursing home is less than 3 years. If premiums are one of the main considerations, get an offer with a short-term interest period versus a period paid for the coverage.
Get a quote with an inflation rider. As the costs of the nursing home increase, the inflation rider ensures that your entitlements increase annually.
When you meet with an LTC insurance agent, learn some terms.
Maturity period – is the time the policy pays interest (eg 2.5 years)
Amount of daily benefits – how much policy is paid ($ 300 per day, for example)
Waiting period – time before policy starts (90 days, for example)
A typical policy may pay $ 200 a day, lasting for two and a half years after 90 days of illness or injury.
Ask your agent to provide you with several different quotes, mix the daily interest amount, the allotment period, and the waiting period to find a protection policy that fits your budget as well.