What Does Long Term Care Cost?

Long Term Care costs can be between $60,000 to over $100,000 per year, depending on your location and care required. Medical inflation, outpacing general inflation rates, factors about 4% per year. Private health insurance and Medicare are not intended to pay for Long Term Care. It is why Long Term Care Insurance surged to its present-day importance

Can It Happen To Me?

As we age, statistically, our chances of needing some type of care in our lifetime increases. Three times as many females will require care, primarily a function of longer lives for women as well as the traditional care-giver role of females. Hospitals have shifted recovery, even for the short term, to other types of settings, such as Long Term Care facilities. We, unfortunately, no longer rely upon our families for even short term care. All this leads to a 40% risk of needing care sometime in our life.

Insurance vs. Self-Pay

Insurance is not right for everyone. Some cannot apply due to existing medical conditions. Others would rather take the risk and pay for any Long Term Care costs out of their own assets. Some people attempt to hide assets to be eligible for public assistance. (Beware of the constantly shifting sands of regulation with this method). There is no right answer, only a personal choice and tolerance for risk.

Cost Of Waiting

If the decision has been to purchase a policy, when is the right time? Younger when premiums are lower? Later, saving the premium, yet risking acceptability to the carrier?

The average age of a Long Term Care policy purchaser today is 56, which indicates people are thinking of this as a financial planning strategy. However, people of all ages apply for coverage. The only issue everyone shares is the ability to be accepted for coverage by a carrier based on health conditions. Waiting too long has a financial impact; however, waiting until a medical condition arises to consider purchase makes it impossible at any cost.

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