Buying Long Term Care Insurance in 2012

There is no better way to start the New Year than with a list of priorities that would probably include plans for your career, family, and finances. Now if you were to encapsulate all of these into a single plan it will produce a long term care insurance (LTCI) policy.

It is a relatively new product but if you compare it with the regular health insurance, it has greater weight. Your regular health insurance will not cover your expenses in a nursing home or those that you will incur from hiring a home health aide. It will only foot the bill for dental treatments, vision treatments, other medical expenses and your doctor’s fee.

Once your hair has turned white and your body has gone frail, your health insurance policy will not be responsible for your long term care (LTC) needs so you have to pay out-of-pocket and this will trigger financial problems.

Long term care (LTC) becomes necessary when an individual can no longer functional normally. When performing the most ordinary activities of daily living (ADL) becomes a burden that’s a sign that he or she needs LTC.

There are different kinds of LTC providers and each offers a unique set of services that is why the rates of these providers vary.

For instance, caregivers in assisted living facilities provide personal care to senior folks aged 65 or older who are not chronically ill and do not require 24-hour care. Families with loved ones in assisted living facilities pay out $3,126 every month on average.

Meanwhile, skilled nurses working in nursing homes have more responsibilities as the scope of their duties includes provision of medically necessary care and custodial care. Nursing homes are designed for chronically ill and injured individuals who naturally require round the clock care and supervision. Taking into account the fact that it is well equipped to provide a wide array of services, a nursing home’s average annual cost would range from $75,000 to over $200,000.

Choosing Your Long Term Care Insurance Coverage

If you are not comfortable with the idea of entering a nursing home or receiving care in a community-based LTC facility, you have the option to stay at home and acquire in-home care which is provided by home health care agencies.

Home health care agencies are highly in demand in the country as a survey disclosed that 90% of Americans aged 50 years old and older prefer to remain in their homes for as long as possible. Home health care agencies are responsible for providing home health aides that assist elderly and disabled people with their activities of daily living (ADL) such as eating, bathing, dressing, toileting, continence, and transferring.

Home health aides charge $19 per hour on average. It is important to note that these health providers are not responsible for doing household chores or errands. If the person receiving in-home care needs someone to clean his house and cook his meals, he has to request his home health care agency to send somebody who performs homemaker services.

LTC is no doubt very expensive whether you receive it at home, in a nursing home, or elsewhere. Even if you have half a million in assets, this will not be enough to cover your LTC expenses considering the impact of inflation. Consult a licensed long term care insurance agent so that you can start planning your future while you’re still capable because if you wait another year or so it might be too late.