Have you considered what you will do if you ever suffer a bad fall or are diagnosed with dementia? If you need long term care, how will you pay for it?
Many people don’t think about this type of scenario early enough and are not financially prepared to pay the costs out of pocket when the time comes. The risk that you will need long term care is fairly high, and the risk only increases as you age.
Addressing the Cost
Long term care isn’t just reserved for severe injuries of illnesses, either. Many elderly people simply need help with getting around, preparing meals, and other daily tasks. The cost of an in-home caregiver is quite expensive, and though there is insurance to cover the cost of this type of care, few people have it.
Long term care insurance helps cover the cost of long term care so you don’t end up paying the whole bill. Studies have shown that many people are concerned about the increasing cost of care at home, in assisted living facilities, and at nursing homes, but many also mistakenly believe the government pays for this type of care. That is not the case.
Medicare doesn’t pay for long term care unless you have suffered a serious injury and been hospitalized as an inpatient for at least 3 days. Even then, they only pay for a short period of care. Medicaid is the social insurance program for the poor and will only pay for long term care if you have already exhausted all of your financial assets. For those who do not want to give up all of their hard earned money simply to be cared for in old age, long term care insurance provides a way to bridge the gap.
Should You Buy?
Premiums depend on your age, health, the amount of coverage you choose, and if you are eligible for any discounts. Couples receive a discount of up to 40% of many policies, and applicants who are in good health often receive a discount, as well.
If you are above the age of 45, in good health, and have assets and a retirement nest egg to protect, you should consider buying long term care coverage. A study earlier this year found that the cost of care is increasing across all provider options. An annual cost of care report placed the cost of long term care in Texas at $61,320 for a private room in a nursing home for a year.
It’s important to apply for coverage before you are too old, because any medical issues will count against you in terms of qualifying. Just like a car insurance wouldn’t accept an application from someone who already had a wreck, long term care companies do not want to accept someone who is already sick and needs care. Looking into your options in your 50s will help you know what type of coverage you want, even if you don’t want to buy it right away.
Many adult children even consider buying this type of insurance for their aging parents. The issue of family caregiving in modern society continues to cause stress and tension as adults are often forced to leave their job or work and provide care in order to help their parent in their time of need. The AARP estimates that family caregivers provide a staggering $450 billion in unpaid care to loved ones every year. Long term care coverage can help shift the burden from families and let them focus on providing emotional support while professionals provide the necessary care.
Request more information about long term care insurance today and we will send you a personalized quote with a comparison of the top policies and providers in Texas.