Who Needs Long Term Care Insurance
The need for long term care (LTC) insurance can easily sneak up on you. This is why you need to consider the option before it is too late. Early purchase is the key to affordable rates and shopping around will help you find the right policy at the right price. Before you make your purchase, or decide it is not for you; you should take a bit of time to learn a bit about the need for long term care and what LTC insurance can do for you.
The Purpose of Long Term Care Insurance
The purpose of long term care insurance is to provide coverage in case you need long term care services. You may think that your health insurance, Medicare or Medicaid will pay for your care, but they will only pay, if at all, for the first couple of weeks. After this period is over, you are on the hook for all long term care expenses. If you haven't looked into, the cost of long term care can be very expensive. The more intensive the care needed, the more extreme the cost and the quicker your financial ruin.
Long Term Care Insurance Data: The Likelihood of Needing LTC
Depending upon your personal experiences, you may not have had any experiences with long term care. However, it is much more likely an occurrence than you may think. According to recent statistics, the chances of needing long term care in a nursing home are:
These are scary statistics, but you can protect yourself with long term care insurance. the optimal time to buy is considered to be in the 55 to 60 age range. The reason is that you are old enough to be threatened by the possibility, but young enough to lock in cheap rates for the life of the long term care insurance policy.
Long Term Care Insurance Data: The Cost of LTC
The cost of long term care is very high, even if you only need home health care a few days out of the week. The cost of home health care can be around $100 per day, depending upon where you live and the LTC provider you choose. If you need more intensive treatment, such as a nursing home, you could be paying between $50,000 and $100,000 a year depending upon the facility. An assisted living facility will cost you about $3,000 per month. Can your income, savings and assets handle this sort of major expense?
Long Term Care Insurance Data: Length of Care Needed
To understand how much you can expect to spend overall, consider these statistics reflecting the average length of time LTC is needed.
The statistic to draw from this is that over 63 percent of those needing LTC, require it for more than one year. If you need long term care for the average time of just under 3 years, you can expect to spend $225,000 for a nursing home and around $50,000 for limited home health care. For most people, this is more than their finances can bear.
Protect Your Life Savings with Long Term Care Insurance
You have built up your life savings through the years with hard work, discipline and careful planning. You certainly don't want to see it all evaporate because you failed to sufficiently plan for your later years. A vast fortune can be eaten up by long term care costs in a relatively short time. As you have seen from the statistics above, to not have to spend money on long term care would be beating the odds and the expenses. A long term care insurance policy can keep you from having to drain your life savings to pay for your care and certainly provide some peace of mind.
Protect Your Estate with Long Term Care Insurance
Not only can you lose your life savings trying to pay for long term care, you could lose your assets and the estate that you wish to pass down to your family. Bankruptcy is a common occurrence for those facing lengthy LTC services without the ability to pay for them. When this happens, assets and things you would like to remain in the family are in jeopardy. By seeking out an affordable long term care insurance policy beforehand, you can circumvent this possibility and leave your family assets rather than debts.
Shopping for Long Term Care Insurance
If you have decided to purchase long term care insurance, or at least to the point of considering this purchase, you will want to look around. Don't just go for the first policy you find, as shopping around can help you save money on the premiums. Long term care insurance quotes are easy to gather and can be done online. They will show just which company is willing to offer you the best rates on the coverage you need. If you are nearing the age of 60, don't stop your planning for the future now. Get a few quotes and then determine for yourself if long term care insurance may be beneficial to you.
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