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The Long Term Care Insurance Cost - Is It Worth It?
You may be wondering if you should invest in long term care insurance. This relatively new kind of coverage is available in case you need to have care at home from a medical professional, in a nursing home, or in an assisted living arrangement. Many people believe that they will not need long term care insurance, but the statistics suggest otherwise. The US General Accounting Office has stated that nearly forty percent of those people currently aged sixty-five will need to spend some time in a nursing home within their lifetime. Spending on nursing home care in this country is expected to rise to around $330 billion by 2030. Currently, the average cost of a private room in a nursing home is over $200 per day, and costs are riding regularly. Surprisingly, no long term care is covered by Medicare, and your private health insurance will not deliver benefits on this kind of care either. Only a few days in a skilled nursing facility after a hospital stay are covered. If you are eligible for Medicaid benefits, you can receive nursing home care coverage, but only a few people meet the age and income requirements for this program. For the rest of us, long term care insurance is a good way to secure the future without having to worry about whether we will be able to afford nursing costs. If you purchase your plan early on, when you're in your 40s or 50s, you'll pay lower rates over the length of your plan. A policy for a 50 year old is around $1000 per year. Someone in their 70s, by contrast, will pay over $6000 per year for the same plan, including a 90 day deductible, $200 per day in coverage, and an inflation rider. Once you've locked in your annual premium, it can't be raised, even if your health changes. This means that it's a good idea to get your premiums locked in now, while you're still in good health, rather than try to get coverage later in life. You'll find that smaller communities get better premiums than larger ones, because nursing costs are comparatively less expensive. If you are buying your coverage early on, you may wish to look for lifetime coverage. That way, you won't have to worry about your insurance running out. However, this is more expensive. Many people choose to cut costs by having a 90 day deductible – agreeing to pay for the first 90 days of nursing home care. This is a good option if your savings will permit it. Another smart idea is to make sure you purchase an inflation rider that will cause your coverage to go up as costs do. That way you won't find yourself paying extra if you need long term care later. All tax-qualified policies must offer this coverage as an option. If you plan well and get the right plan, long term care insurance is worth its premiums. Just make sure that you get the best plan for your money, and buy early.
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