Long Term Care Insurance: Buying Now Can Save Your Wallet in the Long Run
Can you afford to pay for long term care? You may spend years building your assets only to have your plans for a secure lifestyle threatened by the financial impact of a debilitating accident or illness. All that you worked for could be put at risk.
While long term disability income insurance helps you replace lost income, and may help you stay afloat if you become disabled, it was not designed to pay for the long term care you may need – and this type of care comes with a substantial price tag.
For instance, the national average annual cost for a stay-in nursing home is $79,000 a year.*
And contrary to what many people believe, long term care is not covered by other types of insurance and may not be included in public programs. In fact, you may qualify for Medicaid assistance for long term care expenses only after you’ve spent down your assets. And Medicare only covers skilled care – most long term care services are considered unskilled.
What does LTC insurance pay for? For many, a reliable and cost-effective option is long term care (LTC) insurance. LTC insurance helps offset the cost of care that you require in a setting that best meets your needs. Whether it’s a nursing home, an adult care facility, or in your own home with a trained personal or health aide, the cost of the care you need is met under most LTC plans.
Typically, benefits are provided if you lose the ability to perform, without substantial assistance, two or more Activities of Daily Living (ADL). ADLs are: bathing, continence, dressing, eating, toileting or transferring. You may also be eligible for benefits under a LTC plan if you have a severe cognitive impairment (loss or deterioration of intellectual capacity) that needs ongoing help or supervision.
When deciding how to best address your future needs for long term care insurance, pay particular attention to the level of coverage you may require and to the options offered under each LTC plan you’re considering.
Why should I think about LTC insurance how? There are so many options to consider when evaluating LTC plans that you should spend time considering what type of coverage is important to you – but don’t put off buying coverage for too long. Ideally, you would want to enroll in a plan while you are young and in good health.
Also, since the cost for coverage under most plans only increases with age, the younger you are when you enroll, the more cost-effective coverage is. But, no matter what your age, the cost of coverage is minimal when compared to the cost of even a year in a nursing home.
*Long-Term Care Facility Costs – A Nationwide Quantitative Evaluation of
Provided courtesy of The Prudential Insurance Company of
IFS A155608 Ed. 10/08
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