There are few of Americans out there with any kind of financial savviness that don’t have some kind of retirement plan, if not a whole portfolio of plans and resources for preparing for the twilight of your life. We pack money away in 401ks and other retirement plans, we invest and save, and we do everything we think we’re supposed to do to ensure that we can have a peaceful and financially-secure retirement. But, one piece of the puzzle that is often overlooked is Long Term Care Insurance. This important type of insurance is there to pay for so-called long-term care which is administered in familiar settings like nursing homes but also includes a whole host of other forms of in-home and assisted living care and includes assistance with the essential activities of daily life such as eating, bathing and getting around known and activities of daily living.
The numbers don’t lie
Long-term care is expensive. No, we mean, really expensive. People often note that Long Term Care Insurance rates are also high. This statement fails to take into account the relative nature of these rates against the costs of various forms of long-term care services.
Let’s crunch the numbers:
Long Term Care Insurance rate example
A healthy person in their late 40s or early 50s can usually secure a policy for around $2,000-$2500 per year. So, say that individual pays into a policy for 20, or even 30 years. That would mean somewhere in the neighborhood for $40,000-$60,000 in premiums paid. Even adjusting for rate increases and doubling this figure, the premiums paid would reach around $100,000 or so.
Long-term care costs example
The national average for a nursing home stay is around $85,000 and the average length of stay is approximately 3 years. It doesn’t take a math genius to calculate that the above Long Term Care Insurance rate would be nearly paid off in using just 1 year of benefits in a nursing home at today’s current cost and just three months with projected cost of care in 30 years. The 3-year total is nearly a quarter of a million dollars for a nursing home stay, and that’s just an average.
How to get the most out of your policy
Long Term Care Insurance rates, as you can see above, are a bargain compared to the high cost of paying for long-term care services out-of-pocket. But, getting the best deal with the best coverage can be complex. There are many policy options you’ll need to understand and decisions you’ll need to make that can dramatically affect the kind of coverage you’ll receive when it comes time to file a claim. You’ll want to work with professionals who understand Long Term Care Insurance.
That’s what we’re here for. At LTC Tree, we’ve made it our business to help you navigate and understand long-term care, and we’ve helped tens of thousands of Americans with purchasing a solid, affordable Long Term Care Insurance policy. We’re passionate about long-term care and about making sure you are prepared for retirement. We work with the top, blue chip carriers to get you the best deal out there with the highest possible benefits.
Here’s how it works. After you fill out our form, we’ll get you quotes from the top carriers in Long Term Care Insurance in the country. Then, we’ll give you the space you need to consider each offer. Whenever you need us, we’re here to help by answering any questions you may have. Ultimately, our goal is to help you get a Long Term Care Insurance policy that is right for you, your family and your budget. Thanks for reading today’s blog and be sure to check back on ltctree.com for the best in Long Term Care Insurance policy advice, rates, quotes and comparisons.