How Much Long-Term Care Coverage Do You Need?
How Much Long-Term Care Coverage Do You Need?
Being aware and well-informed of the benefits and advantages of having a Long-Term Care plan will help an individual decide on how much insurance coverage and how much investment he should consider when acquiring a Long-Term Care policy. Proper understanding and thorough analysis of the long-term care industry will help you decide on what kind and how long the policy is that suits your future long-term care needs.
To find out how much coverage you need, you should have a rough estimate of the approximate cost of long term care in the area where you live or where you intend to spend your retirement days. Genworth's Cost of Care Survey provides details and information on each state regarding the costs of an assisted-living facility, home health aide and homemaker services, nursing home, and adult day health care. The site also has a calculator which could help you compute for future costs.
Based on Genworth's cost-of-care survey dated April 30, 2009, a private nursing home room would cost at around $74,208 annually, or $203 per day. These figures do not really give us the exact amount of the long term care services that we may need in the future. Be reminded that the cost of care keeps on increasing its value by not less than 4% per annum. Given this rate of increase, the yearly cost of a nursing home might go up to almost $270,000 in 30 years.
In addition to the above data, the survey also concluded that the state-licensed home health aides has an average rate of $18.50 hourly and would even be higher everyday for those who need round the clock care. You may choose to purchase a long-term care policy with a day-by-day benefit to cover the whole LTC plan cost, or acquire an insurance good enough to compensate a portion of the plan to insure yourself of any additional expenses.
One more aspect to be considered when planning to get an LTC plan is the duration or length of the policy coverage. A three-year benefit period will almost be half the price cheaper than the premium of a policy with lifetime benefits. More often than not, a three-year policy period is enough to pay up for the average duration of care that a policyholder needs.
Based on some survey, the average stay for a nursing home resident is 28 months, but some of these residents have long term care needs even before or after their stay in a nursing home. Almost half of the assisted-living facilities residents go to a nursing home to have someone attend to their long term care needs more thoroughly.
If you are a resident of a state that participates in the insurance partnership program of United States government, you may apply and be qualified for Medicaid insurance without having the need to maximize all your assets. The partnership program lets you protect and keep a portion of your assets in case you will need more insurance coverage and you may still be qualified for Medicaid insurance and services. How Can I Get Long Term Care Insurance Quotes? What is Long Term Care Insurance and How Can I Benefit From It? Life Insurance Policy for Future Savings Explore your world and construct a prosperous life with inspiring thoughts Undetected and Untreated Blood Clots Can Be Life Threatening Some Important Reasons For You To Opt For Life Insurance The Keys to Life and Death Decisions; Choose Wisely Life Insurance Policy Options Proven Chiropractic Care for Carpal Tunnel Syndrome & Golf Injury Visit and Experience the Wildlife in Rajasthan Making The Best Use Of Cheap Term Life Insurance Quotes Is Term Life Insurance For Me? Precisely The Way Term Life Insurance Coverage Functions