Unless you have unlimited wealth flowing into your bank account effortlessly, you will need a long term care insurance (LTCI) policy to afford the cost of care which continues to soar at a speedy rate. Before buying a policy though, you could window-shop for a long term care quote as this will come very handy especially if you have to work on a budget.
Long term care (LTC) costs have stepped up once again thus making the average annual rates of nursing homes, assisted living facilities, adult day care health centers, and even in-home care pricier than they already are.
By 2030, the price tags of LTC facilities are expected to shoot up four times more so anybody who is expecting to receive care by then should be armed with a reasonable financial plan lest their resources go down the drain instantly.
Right now, the best way to plan your future health care is by purchasing an LTCI policy for this product generously provides coverage in a wide array of LTC settings.
Two decades ago, LTC was only associated with nursing home care so one has to be sick and in need of medically necessary care. These days, an elderly who can no longer perform the basic activities of daily living (ADL) such as eating, bathing, dressing, use of toilet, continence, and transferring among others can acquire long term care but not necessarily in a nursing home.
Statistics reveal that 90% of America’s population prefers to receive care in their own homes should they need it someday because they are not comfortable with the idea of being cared for by other people. Eight percent of them are okay with assisted living facilities and only 2% agreed to nursing home care.
Plan it Right with a Long Term Care Quote
Comprehensive LTCI policies allow people to receive care in their choice of LTC setting that is why these are more expensive than policies that only provide coverage in institutional or community-based LTC facilities.
Despite that, it is not impossible for the middle-class to avail a comprehensive policy. All you have to do is study the cost of care in your area and identify the type of LTC service that you will most likely need in the future. It is also necessary to estimate the coverage period that you will need from your insurance policy as this will have a big impact on your annual premium.
Here below are the fundamentals that you could learn from LTCI Shopping 101:
• Buying a policy with a big maximum daily benefit amount equates to a higher annual premium while a smaller amount is equivalent to a lower premium.
• Having a longer benefit period (length of time that you will require coverage from your policy) will subject you to a higher annual premium while a shorter benefit period will require a lower premium.
• Policies should be integrated with a level of inflation protection to ensure that its benefits keep pace with the rate of inflation. Without this rider, you could run short of benefits in the future or worse, these might not conform to the cost of care by then.
• Policies with a short elimination period have higher premiums while a longer elimination period equates to a lower annual premium.
• Consult a licensed insurance agent who can help you find a long term care quote that will meet your budget and health care requirements.