Calculating Future Costs With Long Term Care Quote
Not only will a long term care quote give you an idea of which type of long term care insurance (LTCI) policy you’ll need to purchase, it shall help you calculate your expenses for long term care, too.
To avoid the impact of the high cost of care which is expected to increase some more in the years to come, many Americans are buying for themselves, and their parents, LTCI policies to ensure full coverage of their health care expenses.
Although this is the right thing to do, how will you know that you’re actually putting your money in a product that is suitable for your needs?
Requesting LTCI quotes from renowned insurance companies or licensed agents that specialize in LTCI policies is the first of many important steps that one has to pass if he is seriously contemplating buying an LTCI policy.
Securing the right policy, after all, is nothing like shopping for a new dress or a pair of shoes. It’s more like buying a family house which will witness all the important events in your family’s life. Meaning to say, when you buy a policy you are not only ensuring your full or partial LTC coverage, you are also protecting your family from becoming poor.
Today’s 40-year-olds should not base their LTCI quotes on today’s cost of care anymore, as financial planners and LTC professionals have predicted a twofold increase in the rates of LTC facilities. Simply put, if an elderly person is currently spending $ 36,562 per annum for a home health aide, multiply this number by two and the product, which is $ 73,124, will be the annual rate of a home health in 2026.
Meanwhile, in nursing homes, elderly residents are paying approximately $ 77,745 a year for the services that they receive here. Multiply this by the factor of two in conformity with the foreboded twofold increase in LTC costs then you’ll get $ 155,490 which every nursing home resident is expected to pay out by 2026.
Aside from the amount of your maximum benefit and benefit period, a long term care quote also gives one the chance to study inflation protection riders and which type he should avail for his LTCI policy. This is a very important component of LTCI policies because without it your policy can result in obsoleteness. For instance, if you’re expecting to use a policy that has a maximum benefit of $ 200,000 for a three-year benefit period in 15 years from now, you can be caught short.
You’ll need a maximum benefit of at least $ 219,372 to cover home care expenses or $ 300,000 if you’re anticipating skilled nursing care.
Another factor that can affect your policy’s annual premium would be the elimination period so consider an LTCI quote which offers a longer elimination period such as 90 to 365 days. Within this period you will pay all the expenses that you would incur from LTC services.
You really have to study every long term care quote that is presented to you with patience, as this will lead you to a personalized LTCI policy that is intended just for you.