Long term care insurance covers medical and nonmedical services that help individuals live independently at home, in assisted living communities or nursing homes. Services provided may include assistance with bathing, eating or dressing as well as help with tasks like cooking and cleaning. But how much does long term care insurance cost? This depends on various factors including age and health. Ideally it would be wiser to purchase this coverage while young and healthy; premiums increase over time with age while certain health conditions could make you ineligible for coverage altogether.
Long term care coverage costs are dependent upon both the amount purchased and type of policy selected, which in turn are determined by both. Some policies provide only short-term benefits while others can last for lifetime benefits at higher premiums than those offering limited duration benefits. Some long term care policies even provide inflation protection which automatically adjusts daily benefits annually to stay ahead of medical inflation costs; this optional feature can significantly increase costs.
Some long term care insurance providers provide hybrid policies, which combine features of both long term care insurance and life insurance into one policy. Although these hybrid policies tend to cost more, they can still provide your heirs with a death benefit even if you never use its benefits.
Location can play an integral role in the cost of long term care insurance policies. Premiums differ significantly between states and insurers. Some are more competitive in certain markets than others, so it is wise to shop around and compare quotes before selecting a policy.
If you’re shopping for long term care insurance, working with a financial advisor to understand its place within your overall plan could be invaluable. They can assist in selecting a policy suitable to both you and your budget while suggesting reliable providers.
Long term care insurance may be expensive, but it can help safeguard your assets and future independence if ever needing help with day-to-day activities arises. A good long term care policy will give you peace of mind while decreasing the chance that savings or your home are liquidated to pay for care costs.