Should You Get Long-Term Healthcare Insurance?
A recent study from the Urban Institute and the U.S. Department of Health and Human Services, estimates 70 percent of Americans who reach age 65 will need some long-term care during their remaining years. Of that number, AARP says 24 percent will need more than two years of paid care, and 15 percent will spend two-plus years in a nursing home. While many receive needed care from family or others, almost half end up needing some assistance with paying for care.
Planning for the future is tricky at best, and it is important to know Medicare does not pay for long-term care except in cases where skilled care is required such as right after hospitalization for an injury or illness. One way to pay for future care is to purchase a long-term healthcare policy; but experts warn before you do, it’s important to understand just what you are buying.
LTC insurance plans vary on what they cover typically based on how much you pay in premiums. Some of the differences between plans include the amount allowed for home care or assisted living and nursing home care. You can even find plans to protect yourself from inflation.
Other variations on your payment plan involve the waiting time before the policy kicks in. Many plans include a 90-day waiting period. A higher premium can make it possible to get benefits at 30 days, while paying less, a 6-month delay.
Financial planners say it is important to remember a LTC policy is something you only buy once; and there are a number of considerations to take into account including your overall financial position and health and age. Before you do anything, it is best to consult with trusted advisors.
To help you explore ways to pay for senior living, MorningStar has partnered with Elderlife Financial Services. Their agents are available to help educate you on the financial resources potentially open to you to pay for independent living, assisted living or memory care. Contact us to learn more.
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