The average per-day cost for long term care in a nursing home is currently in excess of $200. Round-the-clock care in your own home can be well over twice that amount. Thinking about what these prices will be like 10, 20 and 30 years down the line, it's no wonder many people are starting to think about taking out long-term care insurance. The cost of long-term care, or LTC, can be much more than an individual retirement savings account or a social security check. So if you're currently investing for retirement, but worried about potential LTC costs, you may want to consider policies offered by long term care insurance companies. There are several things that you want to look for before you buy, and this long term care review can help you identify them.
The first thing to do is to find out what companies offer coverage in your area. Not every long term care insurance company has a policy in every state, although major providers, like John Hancock, are a good bet. Once you know which insurance providers are in your area, you will want to check to see how stable the company is. You may be tempted to choose a smaller company with lower premiums, but buyer beware. That company may fold and you may face rate increases, or worse yet, lose your coverage. You can find out a company's financial stability rating from companies like Weiss or Moody's. Although they may charge a small fee, it's worth it to know your company will be around when you need them.
If you've found a stable long term care insurance company, or several, operating in your area, then you can begin to compare the actual terms of the policy. One of the main things you want to look at is the amount of coverage. To determine how much you will probably need you may have to do a little leg work. Calling nursing homes in your area is the best way to find out what your costs would be, remembering to adjust for inflation. Once you have a rough estimate of your per day cost for in-home or nursing home care, then you can narrow down your options to plans that cover that amount.
Another major factor to consider is the elimination period, which is similar to a health insurance deductible. If you need LTC, you will have to pay for the entirety of the cost for care, out of your own pocket, for a set number of days. Some companies offer lower premiums in exchange for a longer elimination period. This may seem like a good deal, but in the long run, it may hurt you. If a nursing home costs $300 per day for example, then even a 90-day elimination period would cost you $27,000!
Choosing a long term care insurance company can be a difficult decision. If you know what to look for an what kind of coverage you will likely need, then you are better equipped to make the right choice. A trusted financial advisor or insurance agent can also be a valuable resource, as can the internet. Choosing the right long term care insurance company can make a big difference in the amount of money you'll receive, and the quality of long-term care you'll receive. To become informed of all the possibilities, get a free long term care insurance quote from an impartial expert.
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