For many people, especially those who have reached middle age and older, it is time to begin looking at long term care plans, in addition to making other plans for your financial future. It is important to consider how to properly arrange for your care, in the form of long term care insurance. For many, the goal of long term care is to protect assets, minimize dependence on family, and control the quality of your care.
So what does long term care insurance cover? Typically, it covers assistance such as help in your own home with daily activities such as bathing, dressing and eating. It can also include adult day care, assisted living services in a residential setting, a nursing home or a visiting nurse.
Long term care insurance may not be for everyone, but with rising healthcare costs and changing insurance requirements, it is an option that should be considered carefully. For many individuals, it is important to be able to choose the quality of care and know what exactly they will receive if and when they need it. It is also important to many people to protect their assets and reduce the amount of dependency they have on their family. You should carefully complete a long term care insurance comparison to make sure the premiums will not lower your standard of living or be more than you can afford.
Long term care insurance rates are affordable for those that can effectively manage their monthly and/or yearly budget. For example, an individual who is 65 years old and in good health can expect long term care rates of anywhere from $2,000-3,000 a year for a limited policy, covering both home care and nursing home care. It is important to take out a policy that you can afford, especially in the instance that your income declines.
Different policies have different long term care benefits which you can select. Some of the different ways to customize your long term care plan are:
- Coverage and long term care benefits. You can choose a long-term care policy with different elements such as only nursing home care, or combined home and nursing home care, or whatever combination you desire.
- Daily or monthly benefit. This is the amount of money the long term care insurance company will pay each day or month you are covered by the policy. If the cost of care is more than your daily or monthly benefit, you will have to pay an additional amount out of pocket.
- What is the benefit period? You can decide how long you will receive benefits from your policy, ranging from two to six years, or the rest of your life.
- Non-Forfeiture Benefit. This benefit allows your policy to still be paid even if you are unable to pay your long term care insurance premium. Keep in mind that adding this feature can add anywhere from 10 to 100 percent to the price of your long term care premiums.
- Elimination or Waiting Period. During this time, anywhere from 1-100 days, you pay all of your long-term care costs out of pocket. The longer this period is, the lower your long term care insurance premium will be.
If you are concerned about cost, there are a few ways to keep your long term care insurance rating down.
- Shop around for prices. It is important to shop around when making any financial decisions. Looking for a long term care insurance rate is no different. Numerous insurance quote websites and companies are a typical method in this practice.
- Longer elimination or waiting period. The longer this period is, the lower your premium will be. Make this time as long as you can reasonably afford.
- Shorter period of coverage. Choose a period of two to six years, instead of a lifetime. These savings are usually significant.
- Select a lower daily benefit. Sometimes you can supplement your care with other forms of income, such as social security. This will allow you to lower the daily benefit the insurance pays, without compromising your standard of care.
- Join up. For individuals who are married, consider taking out a joint policy. These policies are usually offered at a discount.