In recognition of that fact, the Chicago Tribune recently sounded the alarm with a list of five things that everyone needs to know about long-term care insurance. Let’s take a closer look at some of those:
Most elderly people will ultimately require at least some degree of long-term care. (And as the Tribune points out, many people end up needing care even before they become elderly.)
Whether you receive it in a nursing home or in your own house, custodial care is extremely expensive. The national average for nursing home care is currently at $91,250 ($45,760 for home health aid). It’s even higher in New Jersey and Pennsylvania, with costs climbing annually.
Like almost any other insurance, long-term care insurance requires annual premiums — and they can grow with time too. The premiums typically stop once the policy benefits kick in, though.
Combo policies are becoming increasingly popular. They combine life insurance with a long-term care insurance policy. They make sense in some cases; not so much in others. It’s best to talk to a New Jersey elder law attorney before diving into any plan.
Purchasing long-term care insurance is a game of strategy. Ideally, you want to do it at precisely the right time in order to (A) qualify, (B) get the best premium rates, and (C) maximize your benefits for later in life.
The Tribune makes many good points, but it’s important to remember that long-term care insurance is only piece of a much larger puzzle. There are many ways you can build a financial future for yourself.
At Medina Law Group, we help aging Americans and their families make smart choices and effective plans for themselves everyday. Call us to set up a consultation and we can talk about what might make sense for you.