Conditions that Affect Long Term Care Cost
For those who are interested of availing a long term care insurance for themselves or for a loved one, planning early for it will help them find the right LTC plan for their future needs and will likely benefit from it through lower monthly premiums and safeguarded by inflation protection.
Investing on long term care plans is a wise move for any healthy, working individual. The younger age you purchase a long term care plan, the better chance you have at getting a cheaper deal and the higher possibility of maximizing the benefits in the future.
To date, the approximate long term care costs for a private adult day care or nursing facility amount to almost $75,000 per annum, or equivalent to almost $205 in daily basis. Be reminded that this amount does not apply to all states because long term care rates and premium differ from one state to another. Also, these figures were based on today’s dollar, which means these amounts will still change and that future rates are still undetermined.
Some surveys also show that there is an unfaltering increase in long term care cost by at least 5% annually. With this increase in percentage, insurance experts estimate that in 20 to 30 years’ time, the cost would reach a minimum of $280,000 for a year of using nursing home facilities. This is one of the reasons why it is more beneficial if a long term care plan is availed at a much younger age. You tend to pay lower premiums and you do not have to worry about the continuous rise on the amount of long term care because your plan is still valid and will adjust to the long term care cost the moment you need it.
Aside from the nursing care facilities, some state-licensed caregivers and other medical professionals require a minimum average of $19 hourly rate for their services. It will be more costly for those who need daily and incessant care from these home health aides. If your long term care plan has a day-by-day benefit, be sure that the daily benefit amount is just enough to cover all the nursing care facilities and medical professionals’ fees or else, you will be obliged to shoulder and pay the excess amount for your everyday long term care needs.
Long term care cost also depends on the span or duration of your long term care plan. A long term care policy with three years benefit period has cheaper rates and monthly premium than that of a long term care plan with lifetime benefits. In reality, a three-year benefit period is already enough to cover the required long term care needs of the insured individual.
If you want to have an idea of how much long term care cost in your area, several insurance companies’ websites offers a free online assessment tool of the possible long term care cost that you might avail. You just have to provide several information that are needed in order to determine and generate your long term care cost.
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