Anyone who reaches the age of 65 without a long term care plan is bound to suffer financially as the cost of care will eat up his nest egg faster than he can imagine. Canvassing long term care facilities that offer quality services at affordable rates is one way to save on long term care, but this is not going to be enough.
Even if you manage to stumble on a seemingly cost-effective LTC facility, its figures will eventually increase in the long run due to inflation. The result is, you'll pay more money than what you have expected.
Aside from finding a specific type of LTC setting that will fit your future health care requirements and budget, it is also necessary to come up with a plan that will help you shoulder part, if not all, of your LTC expenses.
If selling your house was the first thing that popped in your head after the above suggestion, forget it. The annual figures of nursing home care are way higher than the average equity these days so putting your house in the market is not a very good idea.
Now you wonder if house selling is not a good idea, then what is? Purchasing a long term care insurance (LTCI) policy happens to be the top answer. It is the only insurance product that will allow you to protect your assets because it provides coverage in a wide array of LTC settings.
With an LTCI policy you can receive care at home, in an assisted living facility, continuing-care retirement community, nursing home, or wherever you wish and not worry about spending hundreds of thousands of dollars every year.
However, it is advisable to buy LTCI while you are young and healthy so that you can clinch a low-priced coverage. If you are going to buy your policy after retirement, you will only wind up spending your limited income on your annual premium.
Save on Long Term Care
Having an LTCI policy will protect you from the high costs of care but you have to remember that this is not a cheap product. In fact, it is not advised to individuals who are earning less than $75,000 annually.
The good news is that if you buy your policy early like in your mid 40s or early 50s, your chances of qualifying for the good health discount of 15 percent are big. Even if your health changes for the worse in the future, your premium will not change.
Do not get the impression, though, that LTCI premiums never increase because they do. Well, only if the state insurance commissioner allows insurance firms to push on with their plan to increase the premium rates of their existing LTCI policies. Oftentimes, LTCI carriers only raise the premium rates of policies that were initially priced too low.
Practical Steps to Long Term Care Savings
