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Benefits Of Long Term Care

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People tend to think they will never need long-term care; unfortunately, if they do, they are not prepared for the financial burden it may cause. The fact is that more than 50% of Americans are expected to need some form of long-term care at some point in their lives. According to "A Shopper's Guide to Long-Term Care Insurance" (put out by the National Association of Insurance Commissioners), there is a 41% chance that those over 65 will spend an average of 2.5 years in a nursing home. When should you shop around for long-term care insurance? The time may be now - if the $182,500 tab for a nursing home stay is not part of your budget. What Is Long-Term Care? Long-term care refers to a broad range of supportive medical, personal, and social…show more content…
Benefit Period - The length of time you want the policy to continue to pay benefits (for example, two, five, eight, or more years) will affect the price of your premiums. If your family has a history of needing years of care, you may want to opt for the longer period. Since the average stay in a nursing home is 2.4 years and it's important to keep premiums affordable, a five-year benefit period is often a popular choice. 4. Daily Benefits - The daily benefits represent the amount that the insurer will pay to cover your daily care. On average, a nursing home costs between $150 and $200 per day, but these numbers vary depending on your location and the amenities available at the facility. Keep in mind, the costs of at-home care will usually be considerably more than those for a nursing home. If you plan on using your savings to pay for some of the daily costs, you can select a lower daily benefit to keep your premiums down. 5. Inflation Riders - This inflation protection feature allows an annual increase in your daily benefit to help keep pace with the rising costs of inflation. This is one of the most important additional features of an LTC policy. With the elderly population on the rise, the costs of long-term care are estimated to rise by 5% or more per year. At this rate, a 50 year old purchasing a policy today with a $150 daily benefit will need over $390 per day 20 years from
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