Is long term care insurance worth it? This is the question that many people begin to ask themselves as they age. The answer is complex. There is no clear cut yes or no answer. However, there are several things to keep in mind when considering long term care insurance. Nobody likes to spend money on something they may not ever benefit from. Yet it is important to weigh the pros and cons of purchasing long term care (LTC) insurance. This Sensible Money article describes some things to consider.
You may say to yourself, “I am healthy. I exercise, eat a good diet, and get plenty of sleep. I won’t ever need long term care”. Because you are healthy, you will likely live longer, therefore needing assistance of some kind as you age. It is painful to pay thousands of dollars of premiums throughout the years. However, the statistics from the American Association of Long Term Care Insurance state that the lifetime probability of becoming partially disabled or cognitively impaired is around 68 percent.
Prices of long term care in various geographic region varies. But if you utilize long term care for more than a few months, your benefits would probably equal the cost of your premiums within less than a year. Caregiver support in the home costs $20-$30 per hour. Residing in an Assisted Living costs between $3000-$7000 per month. How many people can realistically afford that? And in our experience, most people wait too long to tap into their benefits or don’t use them at all.
It is not the only thing to consider. It is also important to decide what you want for your children. If you do not want to place the burden of caring for you on them, LTC insurance would be a good option. It would ensure that should you need assistance, your children or family will not have that responsibility.
There are many different options regarding insurance plans. They range in prices and benefits. Some cover everything, and some only offer benefits if you reside in a small group home. It is important to review your options before making a choice. And it is important to continue to pay the inflation rider. While $150 coverage per day may have generously taken care of you 20 years ago, it won’t go far today. And with the high cost of aging, many companies are actually getting out of the LTC insurance business.
The concept of LTC insurance is similar to insurances such as home our auto plans. As the article states,
“You don’t really hope your house burns down or you get in a car accident so you can use the benefits, do you? Of course not!”
Similarly, you may or may not use your benefits, but knowing you have it can give you peace of mind.
Call us at 928-639-1583 or visit Arizona Elder Care and we can tell you which companies in our experience have been the easiest to work with.