What is long term care?
— Long term care covers a wide range of supportive services provided to whose who are unable to care for themselves due to illness, disability, or severe cognitive impairment. It includes help with daily activities including BATHING, EATING, DRESSING. It can best be described as what you do when you first wake up each morning.
How much does long-term care cost?
— Nationally, a year in a nursing home averages just under $75,000, the average cost in Massachusetts is over $100,000 annually. Assisted living and home care is also expensive. A home health aide visiting three times a week for 6-8 hours –to help with bathing and dressing and other activities of daily living care can cost $20,000 -$30,000 per year.
Can I afford long-term care insurance?
— If your assets, not including you home are less than $75,000, purchasing long-term care insurance may deplete your assets before care is needed. A good rule of thumb is to spend no more than 7% of your gross income on long term care insurance.
When is the “right” time to buy long term care insurance?
— Right before you need the coverage — but seriously, unfortunately you can’t get coverage if your not healthly. So, the short answer is…as soon as you can afford it. Long term care insurance premiums are a function of age, and health. The older you are when you but a policy, the more expensive it will be. Moreover, as time passes, the probability of qualifying for coverage diminishes. Today, close to 40% of applicants over 60 can’t qualify for coverage, according to on insurance carrier.
How can I keep my premium cost down?
— Premiums are based on your age at application, relative health and the amount of coverage you receive. The younger and healthier you are the lower your premiums will be. Limiting benefits, increasing elimination periods and applying for coverage with your spouse or partner will also reduce premiums. Many insurance companies offer additional discounts for good health.
How do I know the coverage I buy today will be sufficient in 15 years or more?
— Inflation protection is a critical option that increases coverage annually on either a compound or simple basis. This feature is essential for full protection against rapidly rising costs
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Rob's Insurance blog 