What’s in Your Long Term Care Ins Policy?

How did you determine the maximum daily benefit that you should be receiving from your long term care ins? Do you have an idea how much insurance benefits you’ll have 20 years from now considering your policy’s type of inflation protection rider? These are just some of the questions that you should be asking yourself before you sign a long term care insurance (LTCI) policy. Actually, you have to be very meticulous already in the first stage of the whole process of buying a policy, which is the requisition of LTCI quotes (LTCI) from a licensed insurance agent, as any of the quotes presented to you could be a potential LTCI policy. Be sure that all of the components of a specific LTCI quote agree with the cost of care in your area, your budget, and of course, your health care requirements. Aside from these, check the fine print and see to it that the benefit triggers conform to your expectations. In case your policy’s fine print bears something that you don’t agree with, you have to discuss this with your agent or insurer. It’s true that buying an LTCI policy entails a lot of research, anticipation, comparison, and budgeting but in the end you will find it very beneficial. Regardless of what many people think, owning an LTCI policy is essential these days since the cost of care will continue to up in the succeeding years. Anybody who is currently in his 60s and is expecting to receive care 20 years from now should be prepared to fork out four times more of what long term care (LTC) patients in nursing homes, assisted living facilities, and in-home care are currently paying out. From $77,745, which is presently the average annual rate of nursing homes based on the 2011 Cost of Care Survey of the Genworth Financial, you can expect to pay out $310,980 every year for a private nursing home room beginning year 2030. If your health condition requires you to stay in a nursing home for three years which, by the way, is the average length of stay of an elderly in this type of LTC facility, can you manage to put up $932,940? Long Term Care Ins or Self-Insure? According to financial advisers, the gauge of wealth nowadays is not half a million or less but $1,000,000 and more. Unless you have this much in the bank, you are not capable of self insuring because you’ll eventually run out of funds. There is absolutely no other way to secure your future health care needs but through an LTCI policy. You have to study your policy, however, before signing it to ensure that you will be receiving the type of coverage that you will eventually need in the future. For example, if you want to stay as long as possible in your home even when your body has turned frail and immobile you have to start scouting for rates for in-home care. On the other hand, if you are aware that you could use serious nursing home care someday due to a genetic disorder, you have to know the average daily rate of nursing homes in your place. Although a long term care ins policy is considered important, it will only be beneficial to you if you understand clearly what it can provide you financially and health care wise.