mercoledì 30 novembre 2011

No Long Term Care Plan, So What

Are you among those individuals who are getting close to the retirement age and yet did purchase an insurance policy for long term care (LTC)? Well then this poses both good news and a problem. Let’s start with the good news.

Without a well thought out long term care plan which comes in the form of an LTC insurance policy from a trusted insurance firm, you will be spared from an annual premium which can range from $1,200 to $1,906 if you’re between the ages of 45 and 55 at the time of purchase. On the other hand, if you’re between 60 and 70, you don’t have to put aside $2,320 to $3,900 a year for the premium of an LTCI policy. Meaning to say, you’ll have a bigger chunk of cash to spend for home improvements and whatnot. Aside from sparing yourself from regular annual premiums, you don’t have to go through the mind-boggling choices of LTC facilities. With an LTC insurance policy, especially one which has a coverage that is comprehensive in nature, you have the freedom to receive care in the home setting, a nursing house or in an assisted living facility. Since you don’t have an LTCI policy, you can just receive custodial care at home and get three-hour daily visits from a home health aide. The current hourly rate of a home health aide is $19, so that would roughly cost $55,500 a year. However being only 55 at the moment and 25 years away from needing LTC, you will have to set aside at least $221,900 as annual budget for a home health aide because by the time you qualify for LTC, rates could’ve have increased by as much as four times. You might even require a skilled nurse to look after you at some point and thus fork over $319,740 annually, as a private nursing home room would probably cost around $876 daily by that time. Experts on the field of LTC have been encouraging young and elderly people to secure a long term care plan because the rates of LTC facilities will double in 2026 and increase fourfold in 2030. Without an LTCI policy, this is the problem that you’re likely to face – the whopping cost of LTC. Even if you have accumulated assets totaling to one million dollars, that wouldn’t suffice for LTC expenses. Financial experts have stressed many times that today’s gauge of wealth is no longer represented in million but in billion and trillion. Meaning to say, if the total amount of your assets is not close to a billion, don’t be confident that you can self-insure. Without an LTC insurance policy, your assets that are worth a million will be wiped out in just a matter of two years. If your total assets amount to $500,000 or less you’ll be impoverished in a year’s time should you pay your LTC expenses out-of-pocket. Come to think of it, you’re actually going to spend more of your hard-earned money if you self-insure than if you purchase an LTCI policy. What’s more, with an LTCI policy you get to decide on the components of your long term care plan such as the coverage period, maximum daily benefit, inflation protection, and others that come with it. Looking for ways to save money on long term care insurance premiums? Visit CompleteLongTermCare.com to educate yourself about the various provisions of CLASS Act.

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long term care insurance, long term care,

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