Finding insurance and thinking about your later years are probably two of the least favorite activities for most Americans. And yet, it’s important to plan for both. Maladies such Alzheimer’s, strokes and Parkinson’s aren’t fun to think about, but they are very real. The good news is that Americans live longer now than they ever have, even though about 40 countries have higher life expectancies. The fact that we now live until about age 80 means that we’re very likely to get something like Alzheimer’s and need long term care insurance. Keep in mind that your health insurance won’t pay for your long term care needs – long term care and health insurance are two separate needs. Be forewarned: both long term care and long term care insurance are expensive. One year in a nursing home can cost well over $60,000. In some places, it can cost well over $100,000. Receiving care at home isn’t always as expensive, but it can still cost well over $12,000 a year. Finding either a group or private long term care insurance policy can help reduce that cost when it comes.
Not everyone can necessarily afford long term care insurance. Some may prefer to simply let Medicaid pay for them when they reach retirement age and are in need of long-term care. Medicaid is supposed to cover basic but necessary services for those who are in nursing homes. This means that your standard of living won’t be luxurious, but you should be able to receive your basic needs. But some may prefer to have long term care in a more comfortable and private setting.
In some situations, Medicaid covers peoples’ needs, especially if they don’t have any money. But government programs such as Medicaid are meant to provide for those who have little to no means. If you choose to get long term care, you may have to choose between settings such as living centers or between getting long term care at home. Either way, you’ll want to be sure you can get long term care in a safe and comfortable setting. The amount of comfort that’s considered to be acceptable can depend on the individual.
It’s impossible to predict whether you’ll need long term care or how long you’ll need it. However, there are suggestions. Some suggest that you obtain three years of coverage, while others say it may be better to get five years of coverage. People who are in their mid-60s often need about three or four years of long term care. But this can vary widely. If your parents and grandparents have had “average” health and long term care needs, you may want to abide by these basic rules. But if your family has a history of health needs and have needed more long term care than most, you may want to get more care.
Like any other insurance policy, the less coverage you get, the cheaper the policy. You may want to go with a policy that only gets you three years of coverage rather than more than that. If you’re married, you can share a policy — another way to cut costs a little. Also, remember that long term care costs can vary based on state. If you’re about to retire and you’re considering moving to the South, try to find information about retirement living in each of the different states. Some states that may be tax friendly may be more expensive when it comes to long term care. And finally, shop around with different companies. Get to know the agent, and try to get as much information as possible. Avoid companies that don’t seem helpful, even if they give you the cheapest long term care insurance rate.
Some insurance seekers could be pleasantly surprised to hear about how inexpensive a long term care insurance rate can be for them. Visit our website to find out more information.