Secret To Buying Long Term Care Insurance

By Author: Cynthia Clarke
Total Articles: 18
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Buying long term care insurance policy can protect an average person’s nest egg from the cost of care which is expected to go higher in the years to come.

Financial advisers strongly discourage everyone from the decision of using his personal resources to pay his long term care (LTC) expenses as he will only run out of funds.

After all, one’s LTC needs are unpredictable. At the onset of care, most people require assistance with their activities of daily living (ADL) such as bathing, eating, dressing, toileting, continence, and transferring but some of them develop a serious health condition that eventually subjects them to higher levels of care such as what nursing homes provide.

The cost of nursing home care, however, is significantly higher than in-home care or assisted living as the first guarantees 24-hour LTC services especially to residents who are suffering from a chronic illness. At present, the average daily rate of a private nursing home room is $222, a jump from $213 as evidently presented in the 2012 Cost of Care Survey of Genworth Financial, a leading long term ...
... care insurance (LTCI) carrier.

Though not many people aspire to enter a nursing home, LTCI specialists suggest a certain coverage amount for this LTC facility because nobody can be 100% sure that he won’t require care in such setting. Besides, it was the Department of Health and Human Services that said 40% of the elderly population is expected to enter this type facility.

Who Should Buy Long Term Care Insurance

Some people buy LTCI policies for themselves while others for their parents. An individual who wishes to purchase a policy for himself should consider some pointers from the experts and among these are the following:

• Buy your policy while you’re young and healthy to save on the premium of your coverage.

• Identify your future health care needs to avoid buying the wrong coverage.

• Set a limit to your budget to avoid using up your nest egg on your premium.

• Strengthen your nest egg in preparation for your policy’s elimination period and occasional out-of-pocket LTC expenses.

• Choose a policy that you can afford.

Who does not aspire for an LTCI policy that provides unlimited coverage? Everyone wants this but only a handful of individuals can afford such. One’s objective for securing this type of insurance product should be to preserve his assets and to protect his family’s future.

The amount of your annual premium is not the key to a successful coverage. You only have to know what you need in the health care aspect and how far your budget can go. There is absolutely no point in buying a policy with a large maximum benefit amount, very long benefit period, a 30-day elimination period, and 5% compounded annual inflation protection if it’s going to deplete your assets even before you’ve paid off the total cost of your coverage.

Although it’s an important investment that you should try to consider, you have to enrich your knowledge before buying long term care insurance policy so that your money will not go to waste.

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