Long-Term Care Insurance Rates

Few people like to think about what will happen when they get older. However, statistics show that we are living longer and needing more and more assistance. Unfortunately, we can no longer depend on the government to help us. The best way to ensure your future is to research long-term care insurance and compare rates. Having long-term care insurance gives you control over your finances in case you need it later on in life.

History

• Long-term care insurance was established in the 1970s to provide coverage for nursing homes, assisted living facilities and other care for older people. However, the popularity of long-term care insurance was not well-received until the late 1980s and the early 1990s. The demand became great for long-term health care and more and more facilities opened due to demand. Assisted living and nursing home facilities opened to care for those who needed long-term or short-term care based on an individual's need. Because the need for some type of insurance was in demand, insurance companies developed long-term care insurance policies that helped individuals pay for their care.

Considerations

• Long-term insurance rates vary from state to state. The only way to know what your long-term insurance rates will be is to talk to a trusted broker who can help you. For each person, there can be over 2,000 different premium levels for you to choose from, which means you need a trusted person to help you weed through the muddle. Each level depends on your needs, your age and the cost and your state of health. For generic coverage, rates could range from $300 yearly for basic coverage for a single person age 40 to over $3,000 for full coverage. For married couples in their 40s basic coverage could be $200 yearly to $2600 yearly for full coverage. Without professional help, however, getting an accurate rate is almost impossible.

Features

• Long-term insurance comes with several different features designed to fit your needs. When looking for long-term insurance, make sure the policy thoroughly explains what is covered and what you are eligible for. Some policies will even cover you if you have a pre-existing condition as long as you disclose it prior to purchase. Some long-term care policies will cover nursing home stays, in-home care, assisted living care and others. Other features include housekeeping services, Meals on Wheels and other things a person may need as they grow old. When you start receiving the benefits from your long-term insurance policy, your premium payments should stop and you will have to pay a one-time deductible.

Benefits

• Purchasing long-term insurance is a smart way of caring for your future. It protects your investments and "nest egg" while paying for your health needs. Having long-term care insurance can provide you with 24-hour care at an assisted living or nursing home facility which also helps alleviate the burden off your family. Knowing that your life savings are safe and that you aren't a burden to your family can give you peace of mind right now while letting your inheritance go to your children rather than the health care facility after you pass away.

Warning

• Policies can be quite expensive if you get started too late. For good coverage, you could pay about $1,700 yearly. If you decide to purchase long-term care insurance, make sure you apply for it before it's too late or you may not qualify for it. The general rule of thumb is to start looking for policies in your early to mid-40s. When applying for a policy, make sure you read the fine print because some health issues may not be covered.