Self-insure Long Term Care?

I guess one of the reasons people prefer to self-insure their health care instead of buying long term care insurance (LTC) recipients today regret not considering before is the fear of seeing their hard-earned money dwindle down on annual premiums.

These individuals who have allowed fear to get the better of them probably have scarce knowledge of the current cost of long term care, and the future cost according to the foresight of experts on the subject.

If you’ve been window-shopping for long term care insurance (LTCI) policies as of late, and have been told by various insurance firms at the age of 56 your annual premium is going to range from $1,900 to $1,990, you’ve found a good deal already. These figures are no doubt more affordable than $55,480 a year for a home health aide, $3,271 monthly for an assisted living and $77,380 annually for a private room in a nursing home.

Mind you, these are just the current rates of LTC facilities so expect to pay times two of these numbers if you’re looking to receiving care 15 years down the road, or fourfold if you’re 20 years away from it.

According to financial advisers, if your assets don’t amount to a billion you won’t afford to self-insure. If you insist on this in spite of your limited assets, you will end up impoverished and dependent on Medicaid which does not offer the best of LTC facilities. What’s more, you could even leave your family in a miserable and depressed state.

By considering an insurance long term care expenses will be the least of your priorities because your policy benefits will cover whatever you incur in a nursing home, an assisted living, from home care, or other LTC facilities.

Having a long term care insurance policy gives you the privilege to spend your retirement years on family vacations, travels, hobbies, nightly dinners with your spouse, and other activities which you did not have the freedom and means to carry out before.

Bear in mind that these are the things you should prioritize as you move towards your retirement, and not how to deal with a sickness or disability should it befall you. Although it’s healthy to acknowledge the fact that there will come a time your motor and cognitive skills will fail due to old age or a chronic illness, it’s not something that you should dwell on after retiring from your job.

Long term care should be planned while you are still active at work and earning a chunk of cash every month. Purchasing an LTCI policy between the ages of 45 and 60 is very ideal as this will provide a leeway for affordable annual premiums that range roughly from $1,000 to $2,300.

In Florida, individuals as young as 30 are responsible enough to secure an insurance long term care costs are definitely not going to shake them. Since they’re young and healthy, they have managed to secure policies with a five-year benefit period and annual premiums only ranging from $275 to $426.

This entry was posted in Glossary. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *