When approaching 65 years old or even in your early 70s, you should consider getting long-term care insurance. Social security, such as Medicaid, doesn’t cover all parts of long-term care (LTC). As such, it can’t fully pay for constant in-home care or assisted living services, in case you develop a chronic or disabling condition when you’re retired and older. An LTC policy can help protect your assets and ensure you get all the medical attention and care you need.
Cost of Long-Term Care Insurance
LTC insurance annual premiums range from $3,000 to $8,000. Costs vary by factors, such as:
- Benefits provided (you will pay more for full assisted living coverage than for select benefits)
- Your age (the younger you are, the cheaper your coverage is–for a couple, both 55 years old, LTC insurance costs about $3,050 per year on average)
- Duration of coverage
- Waiting period before LTC benefits become available
While LTC policies are expensive, they are worth the investment when you consider the high costs of assisted living. According to some estimates, skilled nursing facilities or homes charge an average of $105,850 for a private room per year.
Reasons to Buy Long-Term Care Insurance
The possibility of needing nursing home care is a lot higher than most risks covered by traditional insurance policies, such as totaling a car or a fire destroying a house. Yet, it doesn’t usually require a lot of persuasion for most people to see the importance of having auto insurance or homeowners insurance. In contrast, LTC policies aren’t a primary consideration for most individuals. They generally assume that social security would cover their nursing home care costs should the need arise. However, the reality is that only long-term care insurance can fully cater to your assisted living expenses. Otherwise, you would have to pay for the bulk of these services out of pocket, even if you had Medicaid.
Having long-term care insurance helps in various ways, including:
- Financial independence: An LTC policy can cover your out-of-pocket expenses when you’re older. This way, you can avoid placing the financial burden of your upkeep on your children or other relatives.
- To protect your assets: LTC costs can quickly deplete your savings, leaving your children without any meaningful inheritance. Your house, car, and personal belongings would be at risk if you checked into an assisted living facility without adequate financial protection.
- To afford long-term care: Like other insurance policies, an LTC coverage distributes the cost among policyholders. The policies are a lot cheaper than the actual cost of assisted living.
- To maintain your standard of living: By covering your LTC costs, insurance helps keep your retirement savings available for your other day-to-day lifestyle needs.
Where to Buy Your Long-Term Care Insurance Policy
A quick online search can reveal some of the carriers offering LTC insurance solutions. Analyze their ratings, consumer reviews, and overall customer service reputation. However, the easiest route to finding the right coverage is through your insurance agent. Approach them for shopping guidance and request multiple quotes to compare prices against coverage benefits.
Age 45 or above isn’t too early to start considering assisted living coverage as part of your solid retirement plan. If you need help finding the right long-term care insurance policy, contact us at Donald Weiss Insurance Services today. We are happy to discuss affordable coverage options with you!