Long Term Care Insurance Costs
Most health insurance policies do not have coverage for long term medical needs so many people opt to carry long term care insurance. In fact, even Medicare does not provide for long term care which makes it even more crucial to find a plan that can provide for services in home with such things as Activities of Daily Living as well as for long term care outside the home in a facility or within a community ‘daycare’ setting. There are several types of plans that provide a broad list of benefits, and the cost would be based not only on the type and amount of coverages (services) the policy is written for, but also the age of the policy holder and any optional coverages/benefits you elect to carry.
Long Term Care Benefits Period and Cost
The length of time or the lifetime amount of benefits payable will significantly affect long term care insurance cost. For instance, prices will vary between terms of 2, 3, 4, 5 and maximum life time benefits plans. It stands to reason the shorter the term chosen, the less the premiums are likely to be. However, you should know that most insurance companies will actually translate those time periods into a cash value so you won’t actually be limited to the number of days you need care, but rather the equivalent dollar amount payable in terms of current healthcare prices averaged out over the number of years insured for. Also, many companies are now reluctant to write ‘lifetime’ policies in the strictest sense and when you do find a company that sells lifetime long term care insurance, it usually means a higher dollar amount limit such as $1 million, but once that is reached, whether or not you are still alive and in need of care, the benefits will cease.
How Age Affects Long Term Care Insurance Cost
Just as in any other type of health or life insurance, the age you are will automatically affect the premiums you pay. According to figures released by the United States Department of Health and Human Services in 2008, the average long term care insurance cost annually is as follows:
- Average of All Ages: $2,207
- Under 40 yrs of Age: $881
- 40 – 49: $1,781
- 50 – 59: $1,982
- 60 – 64: $2,249
- 65 – 69: $2,539
- Age 70 and Above: $3,026
Of course, those are national averages based on surveys of a wide range of health care insurance companies so premiums could be higher or lower based on the company you choose to get insurance with. Also, those figures are at least 2 years old even though they are the latest published on the website, and will vary according to the type and amount of benefits. These are just median costs.
Based on your age, the amount of benefits you require and the length of time those benefits are payable over, you can actually find various rates by taking the time to shop around. Get quotes from an assortment of companies so that you can compare long term care insurance costs. That is the other main area that will affect cost. Not all companies charge the same rates for comparable coverage so you just might find that by choosing the right company you might save as much as 20 to 40%. Long term care insurance cost is not generally inexpensive, so finding a lower rate can be the difference between carrying that insurance and foregoing it altogether. By taking the time to do a little comparison shopping, you can find a policy that is within your means.