Long term care insurance is an insurance policy designed to help offset the cost of senior care as someone ages. An active policy can be used to pay for some or all of the cost of senior care if and when that care is needed.
Statistics indicate that more than 50 percent of those that are 65 or older will need senior care of some sort at some point in their lives. Odds are, you and your loved ones will need to pay for care in some capacity. Insurance policies help to alleviate this financial burden.
Knowing when to begin your long term care insurance policy can be tricky. Each situation will be a little bit different, so the best answer I can give you is to speak with a professional about your unique needs and how insurance fits in with that.
However, there are some things that you should know before opening up a long term care insurance policy.
The things to remember about long term care insurance is that the price of the policy will take things into account such as the services that are being covered, where the care will take place, how much per day will be covered, and how long the policy will cover care for. For example, a policy that focuses on in-home care, covering $80 per day, for three years will likely cost a lot less in premiums than a policy that covers skilled nursing care, up to $150 per day, for five years.
Additionally, the premiums that are paid into a policy will also be determined by how old the applicant is when the policy is put in motion. The younger you are when a policy is opened, the less the premiums will cost you. If you begin a policy at age 60, you are going to pay a lower premium than you will at age 80.
Some people think that they will save money by waiting. However, this isn’t always the case. There are policies out there that you can actually save money on by starting payments earlier. These policies can be much less costly over the long term because the premiums are so low. Even though payments begin sooner, you spend far less to get access to the care that is desired.
You are likely to spend a lot less money by opening a policy earlier in life. Not everyone has the ability to afford this extra cost earlier in life, however.
Ultimately, the best time to begin the search for long term care insurance will vary from person to person. Some people might find that a long term care insurance policy is incredibly helpful because of the peace of mind that it brings. Some will find that it is just one more stressor in their lives and that it isn’t ultimately helpful.
Where you fall in this spectrum of needs is going to be determined by your unique set of circumstances. If you’re unsure of what is best for you and your family, speak to a senior care professional that you know and trust. Someone who isn’t trying to sell something to you or profit off of your situation will be able to give you impartial advice and help get you steered in the right direction.
Leave a Reply