Should You Buy Long Term Care Insurance?
Many people start taking into consideration the chance of needing nursing care asf they hit middle age. Many have family or family who needed home healthcare, assisted living, or a nursing home. At this time, people learn about the very high cost long-term care, plus they wonder the way it gets their wage for.
Consider this. Full-time nursing homes can cost $50,000 a year or even more. Home healthcare may not be much less, based upon the amount of services needed. Assisted living facilities cost less, but may still be a much more than it costs to reside by yourself. And also the government estimates that 40% of people who turn 65 will require some sort of nursing care during retirement years.
So how exactly does this earn money from? Medicare, the government health insurance for seniors and disabled people, only will pay for temporary care. Medicaid does purchase nursing facilities, and actually will pay for half of all of thee costs in the US. However in order to be eligible for a Medicaid, a person has to deplete most of their assets.
So some people purchase a long term care insurance (LTCi) policy because they want to protect their savings just in case they need to visit a nursing home. There are also alternative ways to plan for this which other choose. And many people have dirty any planning whatsoever.
Disadvantages of Long-term Care Insurance
Who do some people choose LTCi alternatives? Why do many people do nothing? Take a look at some things that they may consider.
Insurance exists to handle risks. By collecting an auto insurance policy, you hope you won't have to use it. With most LTC policies, it is the same. You could pay premiums for years, never need it, and obtain nothing out of your policy except the safety of knowing it is. Some LTC policies could have a return of premium feature but it is not common.
LTCi plans are complicated, there are many different types. Some are more useful and flexible than the others. So some kinds of coverage might not help you for the particular situation you are in. For instance, you might have purchased a policy that just covers an elderly care facility. But an illness may only require adult day care or home health care. Again, some policies will cover different types of care which means you, or your family, can make a choice when the time comes.
Premiums are lower for younger and healthier people, but could go up with time. If you cannot afford to pay premiums when you get older, it won't do you any good if you need to discontinue coverage. Make certain you really can afford the insurance policy.
Benefits of Long Term Care Insurance
Obviously, a lot of people do think LTCi is a superb choice to make certain they've protected their assets.. And some features might even help them before they ever want to use it.
Some policies are tax deductible. Tax qualified plans could be deducted whenever you file taxes now. This will make the real price of premiums lower than the cost a company charges.
Assets are safe. If you wish to maintain a duration of savings for yourself, your partner, or your heirs, long-term care is one obvious way to do this. Using the right policy, you won't have to spend down your whole estate before you qualify for Medicaid.
You'll have choices. Its not all nursing facility or provider accepts Medicaid. You'll be able to choose your private elderly care, assisted living facility, or home doctor without having to worry when they accept Medicaid payments. Some policies even counterbalance the cost of care that is supplied by members of the family.
How you can Look for Long Term Care Policies
It is important to understand how various policies work, just how much they will cost, and which would be the best plan for you. An experienced insurance agent can help you. You may also begin looking using a convenient online long-term care insurance quote form. This will allow you to see competitive policies that are sold in your own local area.