Paying for Long-Term Care with Insurance
The U.S. government projects that as many as 70 percent of people reaching age 65 will require some form of long-term care during their lives. Even though the need for long-term care has increased Americans remain woefully unprepared to finance it.
Insurance is one option for paying for long-term care.
Purchasing long-term care insurance will cost less when you are younger and healthier. The average person will need three years of long-term care rather than a lifetime, and some policies allow for a certain number of years of care rather than a lifetime of care.
The average policy has a daily benefit of $160 per day, and some policies will provide for inflation protection. Some employers may even offer long-term care insurance to help mitigate the costs.
If shopping for private insurance it is best to compare the prices between insurers. Other than price, one of the most significant considerations when picking a policy is the length of time between requiring the services and when the coverage kicks in. Policies with longer wait periods offer more flexibility.
Americans need to weigh their options when considering the best way to pay for long-term care. Insurance might cost more up front, but it may prevent financial heartache down the road.