LTC insurance pays for medical care given in a nursing home or your own
home to treat chronic
(long lasting) health problems.
It is very
expensive to live for a year or more in a nursing home, but
most people do not have to face
that situation. Long-term care insurance can also be
expensive, particularly if you never
have to use it.
Are All Long-Term Care Policies Alike?
No, every
policy is different. Long-term care insurance is a
relatively new product. Therefore,
companies are still experimenting, looking for the best way
to design and market these
plans.
This makes
it impossible to give you a set of hard and fast shopping
rules, which is why
this
information is full of words like some,
most, could, and might.
Insurance Tip:
Before you purchase LTC insurance, remember that a lot of
things could
change
between now and when you might need to file a claim against
your policy. For
example
·The
government could change the way GHIP works.
·Health care
reform could put more controls on the cost of care.
·Insurance
companies could change the structure of their policies.
This
unpredictability makes shopping for LTC insurance more
difficult. It’s a good idea to hire a
financial advisor you trust to analyze your specific
situation before purchasing a long-term
care policy.
Is Long-Term Care Insurance Expensive?
LTC
insurance can be costly at older ages.
·If you are
age 65 or older, expect your premium to be more than $3,000
per year. It will
probably increase in the future.
·If you're
blessed with good health as you grow older, you might never
have to use the policy.
Should I Buy
LTC Insurance?
The answer
depends on personal health and wealth matters. Only you can
decide if LTC insurance
is right for you. This guide is designed to help you make an
informed decision.
Start by
asking yourself the questions below, then look at the next
two pages.
Are you a good candidate for a long stay in a nursing home during
your lifetime?
·How healthy
are you?
·Do you have
healthy habits?
·What is your
family's health history?
What type of resources do you own? (Include things such as income,
property, investments, and savings.)
·Can you
afford the policy, now and later?
·Can you
afford extended nursing care?
·Do you want
to leave your family anything?
Self Check Of Health And Wealth
Your
decision to purchase LTC insurance should be based on two
major factors - health
and wealth. Use this worksheet to help you determine if LTC
insurance may be right for your unique situation.
Will I Need Long-Term Care To Protect My Health?
No one knows
what the future will bring. Statistically speaking, about
33% of men and 52% of women
will spend some time in a nursing home after reaching age
65. However, the typical stay for those who need to enter a nursing home may be shorter
than you think.
·Two of every
three (approximately 66%) people entering a nursing home
stay 3 months or less.
·Only 15% of
all nursing home patients stay six months to one year.
·About 10%
stay in a nursing home as long as three years.
While there
are no guarantees, if you answer YES to any of the following
statements, your chances
of needing long-term care might be higher than the average
person's.
