Getting Ready For Long Term Care Insurance
Battling with old age is arduous as your body weakens and your mind deteriorates. You wont be able to perform activities like normal adults, and you are dealing with death every time you digress all the things that are happening to you now. Another thing that makes you uncomfortable is the cost of care that can instantly sweep out your finances, no matter how hard you try to skimp on the expenses. Even the short term nursing home stay can rip your assets, so whats more if you need this for several years?
One way to keep your assets or savings from becoming exhausted is to buy long term care insurance. Whether to buy long term care insurance or not has been an issue for many American seniors since many are in denial that they would need long term care in the future. For elders in their 50s or 60s, buying LTCi policy is an important aspect of retirement planning, especially if they have relatives who have suffered a lot from financing their own care.
Getting long term insurance should not be done hastily and without tact. It could be the most expensive investment you are going to take, so it requires proper planning and time. Here are the things that you should look for in LTC policies:
Compare Policies - The price, type of coverage, and features vary from company to company. Before you sign up for coverage with a certain company, make sure to inquire from different companies about their policies and then choose the one that offers the best for your needs. Always compare the rates and coverage offered by the companies in your area. A good policy first-look features wherein you can return the policy within 30 days and it is renewable.
Assess your needs and the type of coverage youll need Long term care policies have no fixed cost because the coverage depends from person to person and the rates of nursing homes vary from city to city. It would be better to canvass the costs of the local nursing homes or assisted living facilities for you to know how much coverage you will need. You can also ask referrals and feedbacks from friends or relatives who have had experience buying LTC.
Hedge with Inflation Protection This added protection is advisable for policyholders in their 50s or 60s. What inflation protection is all about? The rates of nursing homes normally increase every year;so if nursing home soars to 5% per year, then a day in nursing home could cost $500 or more in 20 years. If you have inflation protection, your benefits increase to compensate with the inflation rate but the cost of the premiums remains the same.
Choose the best benefit period You are given choices for the benefit period -- the period of time the policy pays out. You may choose from a certain number of years to lifetime coverage, depending on your needs and budget.
However, you should be careful and tactful in choosing the benefit period because increasing the benefit period to few more years or lifetime coverage can double or even triple your yearly premium. You should consider how long you will likely stay in nursing home to save on the premiums. The average nursing home stay in United States is two years, but people with history of chronic illnesses such as Alzheimers or dementia should opt for longer benefit period.
by: Jenny Nielsen