Long Term Care Insurance: Is It Worth It?

It’s a fact of life that all of us will reach a point of needing help in taking care of ourselves. In most cases, it can happen later in life when you become too old and too fragile to take care of yourself. According to the American Association of Retired Persons (AARP), more than one-third of adults age 40 and older report they have not discussed the topic of long term care with anyone. Long term care is expensive. How can you afford to pay for it? The best answer: get a long term insurance plan.

What is long term care insurance?

Long term care insurance can be used to cover the cost of long term care not only in conventional ways but also in innovative ways as well. Most long term insurance plans cover the cost of many different long term care places like your adult daycare center and a nursing home. If you have a long term care plan, most policies will reimburse your expenses in these facilities. And most importantly, this type of insurance helps cover the cost if you have chronic medical conditions. However, not all long term care insurance policies are the same. In fact, a number of the differences can be very important to you.

What services are considered long term care?

Services that qualify as long term care include:

  • Skilled nursing services, such as nursing and rehabilitative care
  • Hospice care
  • Home health care
  • Assisted living
  • Respite care
  • Congregate care
  • Adult daycare

Health insurance companies are required to pay for long term care services under Medicare Part A. Medicare will pay for skilled nursing facility care, home health care, and hospice care. There are no premiums for Medicare Part A.

How much does long term care insurance cost?

The cost of long term care insurance varies widely depending on the amount of benefits you desire, the provider you choose and the type of plan you purchase. This decision is important because long term care insurance is an extremely expensive product. The average long term care insurance policy has an annual premium of $3,000 to $5,000. Though, some policies are as high as $15,000. Long term care insurance is a cost-effective way to pay for long term care expenses, so don’t put it off.

Who can benefit most from long term care insurance?

Long term care insurance is a good idea for anyone who has assets and a family that they want to protect. It can also be an important part of your overall financial planning. Some people consider it a no-brainer while others see it as too expensive or too complicated. However, the fact remains that without some form of long term care insurance, the costs of future long term care could easily exceed the resources you have to pay for them. And unfortunately, many people have no choice but to rely on the charity of their loved ones when the time comes.

What is the best age to buy long term care insurance?

Your 30s is a good time to buy long term care insurance for a few reasons. First, you are healthier now than you will be later in life. Second, you have a lot of time to pay premiums. You will be able to pay the premiums for many years (often 10) without having to pay for illness. Third, you do not need to purchase a long term care policy if any of your adult children are still in your home.

Should I buy long term care insurance or self-insure?

Long term care insurance (LTCI) is designed to protect families from the enormous costs associated with providing long term care for a loved one who becomes disabled. It is a type of insurance that pays benefits when you need long term care services such as nursing home care, assisted living facilities, or any other institutional or home health care service.

There are many factors to consider when deciding if you should buy a long term care insurance policy. The first thing to consider is how much money you have to spend on long term care. If you have a large sum of money, you may decide it’s not worth buying a policy. However, even if you have a modest amount of money, a long term care insurance policy can be an important part of your financial planning.

Self-insurance is appealing because it is inexpensive and easy. However, if you do not have the resources to pay for future long term care expenses, it can be a very expensive decision. And, if you do rely on charity, you may find that the people you most want to care for you are not willing to take the time or make the effort to help you.

Another thing to consider is how certain you want to be about the future. If you are pretty certain you will never need the money from your policy, you may decide against purchasing one. However, if you are not certain at all, you may decide it is worth the risk to purchase a policy.

If you are not sure if getting an LTCI will work best for you, let our insurance experts at Helathbridge Siurance Solutions Palm Desert help you make the best option. We want you to be knowledgeable and empowered to make the decisions that will best support your health and well-being. No matter what questions you may have about health insurance, we are here for you. We’ve helped thousands of people in the Coachella Valley, CA area get the right healthcare coverage for their needs. Give us a call today at (760) 203-3265 and let us help you find affordable healthcare coverage that works for you!