Astounding advancements in medical technology have allowed Americans to live longer lives. While that's certainly great news, it also means that the majority of Americans will deal with some form of chronic illness as they age. Unfortunately if you are not adequately prepared, rising medical expenses could cost you all of your life's savings. Ordinary health insurance policies and Medicare do not usually pay for all the medical expenses associated with long-term care, and Medicaid will only pay if you've already exhausted most of your savings and other assets. Luckily, there's another option---long-term care insurance.
Long-term care insurance can be purchased to cover the many medical expenses associated with long-term care. Typically coverage can include the cost of hiring help in your home for assistance with daily living activities, such as bathing, dressing and light housekeeping. If you need to attend an adult day care, enter a nursing home or join an assisted living community, long-term care insurance will help pay the rising costs associated with your changing lifestyle.
Unfortunately, most people don't consider buying a long-term care insurance policy until they are well into their 70's and 80's. At these ages, the premiums can be outrageous and many insurance providers place age and health restrictions on who they will cover. This means the majority of seniors who truly need coverage will not be able to get the help they need paying the mounding medical expenses associated with aging.
The best time to purchase a long-term care insurance policy is long before you actually need it-sometime in your 40's & 50's. By purchasing a long-term care insurance policy at middle age, you have the highest chance of qualifying for coverage and locking in low premiums. A little planning ahead today might mean a better quality of life tomorrow.
Before you purchase a long-term care insurance policy, there are several things you will want to consider. Consider buying a policy that contains a mixture of coverage for both nursing home care as well as in-home care. As you age, you may require a combination of care both in home and out of home and your policy should cover you adequately for whatever life brings. Look for policies that offer higher monthly benefit amounts. If the cost of your health care is more than your monthly benefit, you will be responsible for paying the remainder out of your own pocket.
Without private insurance, the rising cost of long-term care becomes a burden for most aging Americans. In urban America, the average cost of a nursing home stay is well over $100,000 a year. If you require more than one or two years in a nursing home, you can see how quickly your life savings would be depleted, causing unnecessary stress and burden on the final years of your life. While long-term care insurance doesn't come cheap, knowing you are covered for whatever life brings is certainly priceless.
