Long-term Care insurance is a type of insurance that covers long-term expenses. These insurance plans do not fall under the purview of Medicare, Medicaid, or health insurance. These plans are great for people who don’t want the cost of care. Below are some factors to consider when purchasing a long term care policy. You will need to compare the costs, premiums, waiting periods, and other factors once you have made the decision to purchase such a policy.
The American Association for Long-Term Care Insurance estimates that a single 55-year-old female can expect to spend $1,500 annually for a traditional, long-term care insurance policy. This policy will have a benefit pool of $165,000 and more. The cost of a single policy with no inflation protection would be $2,150 each year for an 85-year-old woman. A couple with similar health and age might pay $3,750 per annum.
Make sure you know the waiting period when purchasing long-term care insurance. The waiting period can vary depending on which policy you have. Although most policies have a waiting time before benefits kick in, some policies have shorter waiting periods and offer lower premiums. If you only require care for one day per week, a policy paying $200 per day for five year could pay out benefits in just three months.
The American Association for Long-Term Care Insurance offers figures that demonstrate the cost of long-term-care insurance. For a traditional long term care policy, a person in her 50s can expect to pay $1500 annually if they are healthy and have no medical conditions. The benefit pool for the policy is $165,000 with no inflation protection. Inflation protection will increase policy owners’ premiums to $2,150 annually and their benefit pool to $222,000. By age 85, the policy owner will have $22,400.
Shopping at work
There are several options available when searching for long-term insurance. Depending on your preferences and the premiums, you can purchase a policy either through your workplace or directly on the individual market. The cost of purchasing individual insurance through an employer is generally lower than buying it through an individual. However, depending on the features you select, individual policies can run up to $1,000 per year. To find the best plan for you, compare premium costs and features.
While it may be tempting to save money by purchasing long-term care insurance yourself, it could prove to be a poor decision. The high cost of long-term nursing care can quickly deplete your savings and estate. This could make it difficult to pass on your wealth to loved ones. Additionally, you might have to liquidate your most treasured possessions including family heirlooms.
Medicaid long term care insurance might be the right option for you or your loved one if they are suffering from a severe medical condition. LTC services are provided by the government through a government-funded program. However, there are restrictions. Make sure that you meet all financial requirements before you apply. Some cases may result in you being denied coverage due to pre-existing health conditions. You can still get help through Medicaid, which is the good news.