Looking At The Price Of Long Term Care Insurance

You have home insurance to protect your assets in the event of a fire, flood, or tornado.  You have life insurance in the unfortunate event that you suddenly pass away.  You have car insurance in the event of a traffic accident.  Basically, you’re insured up to your eyeballs.  “So why would I even consider long term care insurance?” you may be wondering.  Well, the idea behind it is if you get sick and unable to care for yourself, you will have coverage to help you.  But at what cost?  What are some long term care insurance prices?

First, let’s look at the cost of not having insurance.  The going rate for spending a night in a nursing and rehabilitation facility is around $200.  This amounts to roughly $73,000 per year.  That’s a boatload of money if you’re not insured.  As you can see, it becomes very important to get it before you need it.

Plans vary based on the company.  Long-term-care insurance can be as low as $55 each year, or as much as $12,000 annually.  It all depends on your age and what kind of coverage you get.  Obviously, the younger you are, the less of a risk you are, which will result in a lower monthly premium.

Also, how much coverage you are interested in getting will affect your coverage.  Some insurance companies cover going to a nursing home and assisted living, while others cover only residential assistance.  With most long term care insurance, you generally can collect once you become mentally impaired or lose your ability to complete certain tasks associated with normal daily living.  Most experts suggest that the highest reasonable amount you should pay for your insurance is around 7 percent and can afford for the premium to eventually increase to somewhere in the teens.  Anything beyond this, and you’re spreading yourself too thin and taking out the insurance is inadvisable.

So why doesn’t everyone go out and buy insurance?  Well, long term care insurance can be a very confusing thing to buy.  There are so many factors—premiums, supplements, policies, add-ons, terms—it’s enough to make you run as far away as you can.  And the rules change in each state.  So how do you know what to do.  Here’s the final word: it can be difficult to tell the difference between two policies.  Sometimes the best looking policy isn’t really the best one due to hidden costs and price hikes. The best thing you can do is take your time and keep things simple.  Don’t pay for a complex package as you likely will not end up needing all the extra stuff.  Also, you don’t have to commit to anything today.  Do your homework—ask friends, go online, find out about the insurance you’re considering.