Long Term Care Insurance in AZ.
For many people the idea of long term care insurance is something they put off making any decision about. It is regarded as something which won’t affect them or their loved ones. On the other side there is fear – fear that the seemingly enormous costs of long term care may result in individuals or families having to sell off their assets including their homes in order to pay for long term care.
So what are the facts? The US Department of Health and Human Services expects that 70% of people over 65 will need long term care services at some point. Such care could include medical care for those with chronic illnesses, or non-medical care for those who just need assistance in everyday activities such as dressing or bathing.
The costs of long term care
A large number of elderly people are looked after by family and friends. Where this doesn’t happen the costs of long term care start to seem alarming.
- Nursing home care costs on average more than $70,000 per year or $193 per day, and there are huge variations in costs between different states and even different counties. The cost of nursing home care in New York is $110,960 while the same care in California is $73,000.
- Home health care ranges from $33,000 per year in West Virginia to $49,000 in Connecticut
- Contrary to what many people believe long term care will not be covered by your health insurance, whether private or Medicare. On the other hand some Federal and state employees as well as some Veterans may be eligible for certain organizational long term care insurance schemes so check them out.
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Is long term care insurance right for you?
Many people are now looking to see whether they can obtain long term care insurance.
Long term care insurance policies work on the same overall basis a other insurance policies – regular monthly premiums and a payout when the need arises.
However the range of long term care insurance options for you is huge. When do you start paying the premiums? Inevitably the later you start the higher the premiums you will pay. Should you cover yourself or your family for nursing home/assisted facility care and/or home care? It is impossible to know now what you might need in future years so it is important to have a long term care insurance policy which covers all the possibilities
So you need to sit down and ask yourself some key questions:
Is long term care insurance affordable?
If the premiums amount to more than 7% of your income then they are probably not affordable.
What type of long term insurance do you want?
Long term care insurance payouts usually either come in the form of a per day payment, a fixed benefit unrelated to actual costs, or as a portion of actual care costs. Get advice on which is best for you.
What will the premiums cost?
There are a number of factors which insurance companies will take into account when assessing the premiums of potential long term care insurance policy holders:
- The age of the person being insured. The older you are the higher the premiums
- The health of the beneficiary when he/she signs up. Some people are also refused a policy if they have certain pre-existing conditions
- What benefits you want
- Whether you want the benefits to be protected against inflation. $150 per day in benefits may seem like a good deal now but in a few years inflation may reduce that amount severely
- Which state or county where you expect to have the care provided. As we have seen above the costs for long term care vary hugely between states.
Summary
Above all else take your time when considering long term care insurance. Don’t rush into the first policy you are offered. Assess your goals and needs. Work out your best options and get expert advice from several sources. Then make your decision.