The cost of your medical care will increase as you get older. As you get older, you have a greater chance of becoming disabled or developing an ongoing illness that requires long-term medical care. You have a 68% chance of needing long-term care if you are 65 years of age or older.
There may come a time where you need to be placed in a nursing home or assisted living facility. Health insurance does not cover the cost of these services, and you probably cannot pay around $70,000 a year to stay at a nursing home. Long-term care insurance can help to cover the cost of long-term assisted medical care.
Long-term care insurance is purchased to cover the future cost of medical care that standard health insurance does not cover. This insurance covers the cost of care that results from an accident, an illness, or age-related medical conditions. Long-term care insurance covers the cost of extended stays at a nursing home or assisted living facility as well as at-home care and rehabilitation treatments. You also do not have to be elderly to benefit from long-term care insurance. You can receive coverage at any age if you have a policy.
Long-term care insurance is a great financial planning tool if you have less than $5 million in assets and cannot afford to pay for long-term care. You may qualify for long-term care coverage through Medicaid if your assets are very low, but Medicaid only provides coverage for long-term medical treatments for a limited amount of time. If you still need medical treatments after this time, then you will need to pay out-of-pocket for treatments unless you have long-term care insurance.
The cost of long-term care insurance is minimal compared to the cost you will pay out-of-pocket for long-term medical care. You can reduce the cost of this insurance by purchasing a policy before you need it, having a long elimination period, buying a joint policy with your spouse, or paying one annual premium instead of making monthly payments. Talk to your local insurance agent for details.
Get a free estimate on this policy