Long-term care costs
Healthcare is often the largest expense most retired individuals will face. As medicare fails to cover many necessary expenses including long-term care, it can become dangerously easy for the average American to drain through their own savings and funds. A semi-private nursing room alone can run on average $6,845 a month and a private room about $7,700. The prices within varying room and facilities differ slightly, however they are all quite steep. Dependent on how many hours or years of care are needed, these costs can certainly add up and countless research suggests that more than half of all Americans will require this type of care for at least two years. One in Seven of American will require care for even longer periods such as five years or more.
Long-term care is typically administered beyond 100 days an is therefore not covered my medicare. Long-term care insurance(LTC) exists to protect individuals who wish to responsibly afford the costs of a in-home caretaker, assisted-living facility, skilled nursing facility, or nursing home. Once you purchase an LTC policy you will be responsible for a monthly premium which will in term give you long-term care benefits. Coverage is typically accessible when the policyholder requires help with two or more ADL’s such as;
- eating
- bathing
- dressing
- transferring
- toileting
- maintaining continence
Cognitive impairment also serves as a qualifier for a policyholder to access benefits. The polices elimination period which tends to vary from 30,60, or 90 days, will determine when then policyholder will receive these benefits and the daily limit will determine benefit amount. The price of your insurance will tend to increase the longer you wait to purchase. The reason is rates are typically assigned based on age and health at the time the policy was purchased. You should also note that if your health is already in severe decline at the time you try to obtain a policy, you run the risk of decline. You can typically purchase a policy straight from insurers or by working with an independent agent. Either way you should make sure to shop the market and compare companies and quotes before making a decision.
If you or someone you love is interested in Long Term Care or Long Term Care Insurance be sure to visit: LTC TREE for more information
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