Is Long Term Care Insurance a Good Idea?
Is Long Term Care Insurance a Good Idea?
Long term care insurance has risen to fame as more and more American seniors are getting their nerves on the escalating long term care costs. In 2010, the Genworth Financial conducted a survey on the costs of institutional services throughout United States, the results show that the average annual cost for nursing home care is roughly $79,000 and will surely increase in few years. This can adversely affect millions of American seniors and their families with few resources and count on Medicaid for help.
Self insuring is unsound because the crippling costs of care can wipe out your assets. Long term care insurance pays for skilled care either in your home or in a facility and, at the same time, protects your finances from inadvertent expenditures. Even if you are reasonably healthy today, it does not guarantee that you will not need any formal care in the future; thus, buying an LTCi will help uphold the dignity you deserve during those arduous years.
Who Needs LTCi?
Insurance companies encourage individuals from purchasing private LTC insurance to protect themselves from unlikely sickness or impairment that may ruin their finances in the future. A family history of cognitive impairment such as Alzheimer's or dementia deserves to have some kind of coverage because it is financially devastating for the family to pay for long years of stay in an institution. The LTCi ensures that you will receive professional care in a chosen facility and your children/family. This also saves you from depleting your assets in exchange for Medicaid coverage.
Long Term Care Insurance Cost
There's no fix cost for any long term care insurance policies. The price differs in the state where you live and with other states. Metropolitan regions have higher rates for institutional care than the rest. The study conducted by Conning and Company divulges that 60 percent of seniors age 65 and above will need long term care at certain time in the future. That is an overwhelming percentage. Even though the average nursing home stay is nearly two years, the bills could hit up to $80,000 per year that most of us cannot afford to sustain.
What Factors Affect my Premium?
The premiums depend largely on your health history, age, and state. You will undergo strict "underwriting" process for the insurer to know your past medical history and determine if you are eligible. You are required to submit medical records and have your doctor or medical practitioner interviewed.
With regard to age,there's one quick rule: the younger you are, the cheaper premiums you'll get. However, most insurance planners suggest purchasing policies in mid 40s to 50s. They reveal that when you buy premiums at younger are, the more likely you'll pay for increments as the prices soar.
The state where you purchase the policy has something to with the price of your premiums. Expect much expensive policies in states such as New Jersey, Texas, New York, Washington, and California. Things You Should Not Overlook In Buying Long Term Care Insurance Comparing Long Term Care Insurance Policies Getting Term Life Insurance simpler for you The Ins And Outs Of Life Insurance Life Insurance Lexington NC - 33 Secret Tips To Not Get RIPPED OFF I Was Recently Diagnosed With Depression. What Happens Under My Term Life Insurance, Income Protecti Life Insurance For Seniors Is Unnecessary, Plus 5 More Insidious Retirement Myths Key Advantages of Whole Life Insurance What Is Long Term Disability Insurance Should I buy Life Insurance in Idaho Fabulous Fun and Funky Scottsdale Nightlife Hot Spots Should I buy Life Insurance in Indiana How to Change the Life You Have and Get the Life You Want