You know that it is important to plan for retirement, but is it necessary to plan for long-term care? Long-term care insurance is coverage that goes beyond your basic health insurance or Medicare to cover assisted living, nursing homes or even meal delivery services. No one likes to think about a time when they will need daily assistance, but preparing for this time is the best way to ensure top-notch care.
It is impossible to predict your future needs and the costs of those needs, but 70 percent of senior citizens will need to utilize long-term care, whether it is respite care or just occasional housekeeping. To get a better idea of the costs of long-term care, calculate the assisted living, home health care or nursing home costs in your area.
If you think that long-term care insurance may be right for you, then it is important to decide what kind of policy you want. Policies vary with which services they support as well as the premiums they charge. Here are a few options that are commonly offered with long-term care insurance:
- Daily care, which can range from $50 to $500 per day
- Comprehensive (at home and community care) or facility-only (nursing home) services
- Benefit time period, which can be anywhere from two to an unlimited number of years
Once you have made decisions on the type of plan that you will need, contact your state’s Department of Insurance to find reputable companies in your area that offer long-term care insurance. Another option is to participate in your employer’s long-term care insurance plan if your company offers coverage.
As with all insurance, there is a risk that you will pay for this policy but never need long-term care. However, it’s important to remember that premium costs are determined by your current health and age, so the sooner you purchase long-term care insurance the lower your premiums will be. For more information on long-term care insurance contact the National Family Caregivers Association or the Administration on Aging.