If you’ve ever wondered about long term care insurance costs, you’re not alone. This type of insurance is not as well known as other types of insurance such as life insurance or health insurance, but for some people it’s just as important.
First, it’s best to understand what long term care insurance covers. These types of policies help pay for expenses if you ever have a chronic illness or disability that leaves you unable to care for yourself for an extended period of time. Long term care insurance costs cover care generally not covered by health insurance, Medicare or Medicaid.
Will you need long term care?
It’s hard to look into the future and see what will happen as you age. But the statistics will give you a good idea.
About 19 percent of Americans aged 65 or older experience some degree of chronic physical impairment. Among those aged 85 or older, the proportion of people who are impaired and require long-term care is about 55 percent. In the year 2020, some 12 million older Americans are expected to need long-term care.
Long term care can be very expensive and the real amount you will spend depends on the level of services you need and the length of time you need care. If you decide to receive long term care in your home, you have to find the right caregivers, which may be difficult. For help with such things as dressing, bathing, chores and meals, the price can really add up.
Costs vary widely
To cover these expenses, long term care insurance is an option. This type of insurance was started to help people pay for these expenses since most of us don’t have an unlimited amount of funds.
Long term care insurance costs can vary widely, depending on the options you choose. The actual premium you will pay depends on many factors, including your age, the level of benefits, and the length of time you are willing to wait after you need services but before benefits begin. A licensed long term care insurance agent or a financial advisor can inform your decision about balancing policy features and premium cost.
It’s also smart to understand the different types of policies, tax implications of purchasing long term care insurance, things to think about before you buy, how long term care insurance works with nursing homes or Continuing Care Retirement Communities (CCRCs) and more.
Source: “Guide to Long Term Care Insurance,” American’s Health Insurance Plans, 2012.