We are fortunate to live in a time when the average life expectancy is rising and not falling. However despite our lifespan and quality of life going up, a lot of us won’t be able to take care of ourselves in our own homes or until we die. It’s sad to think about, but it is real; our bodies and minds age over the years which at some point will make us dependent upon the care from non-medical professionals.
The need for long term care maybe inevitable, but it definitely isn’t cheap. It was reported in 2010 that the average cost price for having a private nursing home room was around $83,000 a year which is $229 a day. If you’d rather have in-home health care, you’re can count on spending about $210 a day, which isn’t including your everyday living expenses.
Medicare won’t pay for care that is just for assisting you with activities that are nonmedical such as getting dressed, bathing, and making supper. If your assets have been depleted, that’s the only time when Medicaid will pay, so more than likely you’ll have to pay for your long-term care out of your own pocket. A long-term care insurance policy provides a plan that is affordable for you to pay for your future care needs. However, as our life expectancies increase, the cost of getting insurance coverage does too.
If you purchase long-term care insurance when you’re younger, in your forties for example, you’ll have lower rates to start out with than what you would if you were older. Those rates will probably increase as the years progress but according to some studies, the increase of the small annual percentage amounts to the out of pocket premiums being less, as long as you purchase your policy at a younger age rather than wait to purchase it when you’re older, such as early fifties and up. This can be a savings of $20,000 and more.
Aside from the major increase in rates when you purchase long-term care insurance when you’re older, there’s also the chance that you might not be accepted for coverage when you apply for it when you’re older. The chance of this happening is greater if you’ve been diagnosed with a chronic illness.
When you’re prepared to begin comparing long-term care insurance rates to understand the benefits and differences in when you apply for it now as opposed to later, call us. We’ll help you understand and compare the premiums and companies.