Long Term Care Insurance Should Not Be Overlooked
If theres one thing that people often overlook
, then preparing for long term care tops the list. People normally ignore the harsh reality that they will grow old, ill, and frail. There comes the time when they can no longer care for themselves and need outside help to continue their normal lives. The avoidance of this reality also explains why very small percentage of people considers long term care plans.Long term care insurance is unquestionably the best way to prepare for the potential risks of aging. Keep in mind that Medicaid will not foot the bill for your long term care unless you are poor. If you are middle income earner, planning to self insure is not a good idea because it will surely reap off your assets and savings to pay for nursing home expenses.
However, the complexity of these policies makes it disdainful to decide whether they need it or not. Some terms and conditions in the policy are quite confusing: companies say that policyholders would get cheaper premiums if they use longer waiting period; however, longer waiting period could be expensive. The high cost of long term care insurance affects the buying decision of many consumers. A daily benefit of a 60 year old could go around $150 to $200- thats indeed troublesome for anyone paying the premiums for two years or more.
It is good to assume that you wont need long term care in the future, but better than sure you must prepare for any life changing events that may drastically affect your health and finances. Nevertheless, you must prepare and decide carefully before buying a policy. First, you should get idea how much nursing care and other facilities cost in your area. The typical length of stay of most residents is 2 years, so buying coverage for two years can help a lot. Adding inflation protection rider is a significant way to keep pace with the escalating costs. And most of all, choose a company with credible financial record and integrity.
There may be pros and cons of LTCi, this is why people are eyeing at other reasonably priced alternatives for their care. In few years, people may take advantage of the Community Living Assistance Services and Support Act or CLASS Act. This program was established under the new health care law to help people with functional limitations, particularly the elders and the disabled, manage their care without exhausting their assets or savings for Medicaid benefits and private insurance. The daily benefit from CLASS act can be used for either home care or facility care. Since this is a new program, the amount of daily benefits and premiums are yet to be discussed, but the Congressional Budget Office predicts an average of $70 daily benefit. Enrollment will not be open until 2013, but participants should expect to pay premiums for the minimum of five years before they receive the benefits. All working individuals will be automatically enrolled in the program, unless they opt out.
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