Long Term Care Insurance (LTC) is the medical care provided when a person can’t care for themselves for a significant period of time.
A person can receive long term care in their home or in assisted living homes. Caregivers help with the daily tasks that may be difficult to perform alone – including help with dressing and bathing. Anyone of any age can benefit from long term care, but most is provided for senior citizens.
How Much Does Long Term Care Cost Without Insurance?
Long term care can be very expensive. Depending on the services you need, costs could be between $20,000 and $77,745 a year. In some parts of the country it could be more.
Estimated Annual Care Costs for Texas in 2019
Most people can’t afford medical expenses that large without spending their life savings. That’s why people buy long term care insurance. And long term care insurance is a smart way to protect yourself.
Will I Need Long Term Health Insurance?
It is estimated that 70% of people over the age of 65 will require some period of ongoing assistance at some point in there lives.
You may think Medicare and Medicaid will cover all of your long term care needs. But these programs only cover temporary, medically necessary care. That means long term care has to be paid for out of your own pocket, with bills sometimes ending up just too large to manage.
How Can I Protect Myself?
Because long term care can be very expensive, it’s important to protect yourself from big medical bills.
That’s why so many people find a long term care insurance plan. By spending just a little money on insurance premiums now, you can make sure you’ll have care for the future. It’s important that you know what to look for, and find a plan that will fit your needs. With our free quote service, we’ll help you make an informed and educated decision to protect your self and your family.
Learn about the Four Cores of a Long Term Care Health Insurance Policy.
Long Term Care insurance can be a very complex subject because of all the benefits that go into a policy. Listed below are the descriptions of the core benefits of a policy:
Daily Benefit – This is the amount that the Long Term Care insurance policy will pay per day when you need care. Most policies range from $50 to $300 per day. To determine how long of a Benefit Period you should purchase, it is recommended that you go by the average cost of nursing home care in your state. You can obtain this information by visiting the Genworth Cost of Care Survey 2013.
Benefit Period – This is how long the Long Term Care insurance policy will pay for coverage. Most policies offer a 2, 3, 4, 5, 7, 10, and Lifetime benefit period. Most people purchase a 3 to 5 year benefit period. Studies indicate that the average stay in a nursing home is 2.4 years long, however this does not include any home health care or Assisted Living stay, which is important to take into consideration when choosing a benefit period since most people that do require nursing home care do opt for home health care and Assisted Living prior to entering a nursing home. Lifetime benefit period should be considered if it is affordable and if you have longevity and/or dementia that runs in your family.
Inflation Protection – Long Term Care costs are expected to rise in the future, so it is recommended to purchase some type of inflation protection. There are three different types of Inflation Protection that is offered on most policies.
Simple Inflation increases the daily benefit by 5% of its original amount. With simple inflation, benefits will double every 20 years. Compound Inflation is very similar to simple inflation except the daily benefits are increased by 5% of the previous year’s amount. Benefits will double every 15 years with this type of inflation.