Why You Need Long Term Care Insurance

In less than 20 years, the cost of care will shoot up four times more than what it is today. Requesting long term care insurance quotes is not a bad idea as it will prevent the derailing of financial stability which long term care (LTC) costs can definitely cause. rnEveryday LTC reading probably makes you think that all these figures attached to nursing home, assisted living, continuing-care retirement communities, and in-home care among others are mere hyperbole. Unfortunately, they’re not. Inflation pulls up the cost of care along with the prices of other goods and services. However, comparing LTC costs to the cost of your dinner staples would be an understatement because your total budget for potatoes, eggs, bread, olive oil, wine, and beef will not equate to your annual income. rnReceiving a year of home-based care will no doubt eat up your annual income plus bury you in debt because the average cost of this type of LTC setting exceeds $84,000. In-home care, which is the top choice of 90% of Americans over 55 years old, includes home health aide and homemaker services that have annual costs of $43,472 and $41,184, respectively. If you are not earning $100,000 or more in a year, it can wipe out your nest egg in just a year’s time. rnMeanwhile, Genworth Financial’s 2012 Cost of Care Survey shows that from $77,745 the annual rate of a private room in a nursing home has increased to $81,030. Although not many people imagine themselves winding up in this type of LTC facility, the Department of Health and Human Services would just like to remind everyone that 40% of senior folks 65 years and older will need some level of skilled nursing care at some point in their lives. rnThat important reminder should factor in everybody’s LTC plans to prevent huge individual out-of-pocket LTC expenses. rnLong Term Care Insurance Quotes rnInstead of braving the cost of care, it is best for one to study his long term care insurance (LTCI) options. He can begin this process by requesting LTCI quotes and seeing each as a rough draft of a potential coverage. rnEach company that sells LTCI policies strictly follows a medical underwriting so anyone who is after premium savings must start gathering his quotes while he is still young and healthy. With the help of an LTCI specialist whom he has to supply with essential information that is vital to his coverage, like his age, medical history, family’s health history, city, and preferred policy, it should only take awhile for a potential policyholder to get hold of his quotes. Beware though when picking an LTCI specialist as there are many frauds these days that are just waiting for an opportunity to rip off the innocent. rnBefore negotiating with a person or company that claims to be an expert in long term care insurance quotes, find out what credit rating agencies have to say about it. You can look up the ratings given to it by A.M Best Company, Standard & Poor’s, Wiess Research, Duff & Phelps, Moody’s Investor’s Service among others. You can also get a list of licensed LTCI specialists from your state’s insurance department.