No one can escape old age, unless you die young. Long term care insurance is our most powerful defense when our age starts to wither and our bodies continue to shrink. Long-term care insurance can be absolutely expensive, but its cost pays off the most important part of ourselvers –our welfare and health.
Why is long term care insurance so expensive? This question confuses people who are torn in purchasing LTC policies. If there were only cheaper alternatives, then people would be more willing to spend on their elder care than cars, house, or whatsover.
The costs of long term care vary greatly on three basic factors: your current age, your recent health status, and your residence. Here are some of the things you might not be aware of long term care:
Buying Early is Advantageous – Most of us think of getting long term care insurance when we most likely need it. This is a simple mistake everyone commits. If you purchase at younger age, the lower your premiums will be and the more benefits are up for grabs.
Good Health Pays Off – Are you a health buff? Having a good health means a lot in purchasing long term care insurance. If you beam with good health, your insurer may deduct a portion of your premium to at least 10 percent. Once you have locked in an annual premium, it cant be changed although your health get worse or change. However, some insurance companies may demand from state regulators to increase the premiums of the entire age group, depending on claims experience. It’s always advised to purchase your coverage only from a reputable insurer. Insurance companies require policyholders to have medical examination first do determine the corresponding cost premiums he/she entitled to and the total tax deductions. Any misconduct such as falsification of documents can result to denial of coverage.
Where you Live Affects the Cost – The prices of long term care for different settings (nursing home, assisted living, home care) vary from state to state. The rates are generally higher in major cities or metropolitan areas–Texas, Washington, New Jersey, etc.–than those in rural communities. If you are living in the metro region, you’d better expect for pricey care.
Length of Coverage – The normal average of stay in nursing facility is 2.5 years, some people cut the length of the coverage to save more. However, if you are in mid-50’s, you’ll realize that lifetime coverage is worthwhile.
Elimination Period – This is also known as “deductible.” The longer the elimination period, the lower the premiums will become. You may opt for 90-day deductible that could cut down your insurance premiums. During that period, you really don’t need much care and Medicaid or personal/other resources may cover up the costs until the actual LTC policy butts in.
Inflation rider – Long term care price rises every year. The inflation protection or rider saves you from escalating costs of LTC; even 3% inflation rider can be a great help than not having at all.
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