Long Term Care Insurance Alternatives
Should We Worry About Long Term Care Insurance?
Since the aging population of the US is growing, more people are concerned about long term care insurance. 
Though rates vary by age, health, location, etc., the cost of private long term care insurance can range from an average about $900 a year at 50 to almost $6,000 a year for a 75 year old. However, nursing home rates are also rising. Some reports peg the average anual cost of a nursing home at about $50,000 a year. So you can see how a long term stay in a nursing facility could, indeed, deplete a family’s resources rather quickly.
Medicare only pays for short term nursing care. Medicaid does pay for nursing home care, and in some cases, home health care. But you need to use Medicaid approved providers. You must also have a low income and few assets. So people purchase LTCI when they are concerned about depleting all of their financial assets if they do need long term care. This care averages about $50,000 a year these days.
But still, these premiums can be tough to justify for many lower and middle income people. LTCI premiums vary by age, health, and other factors, but can range from about $1,000 a year for a 50 year old to almost $6,000 a year for a 75 year old. It may makes sense when balanced against a $4,000 – $5,000 a month nursing home bill, but it is still a lot of money.
Long Term Care Insurance Alternatives
Besides Medicaid, you can come up with some other ways to plan for possible nursing or home health care costs. I found some suggestions for some other financial products that can serve double duty. In other words, your financil investment can protect more than one thing, and so they may be frugal choices.
Annuities with Long Term Care Riders – As you use a retirement annuity to guarantee income, some come with an additional rider that will allow them to pay for nursing care. These can work in different ways, so it is a good idea to compare different fixed annuities to find one that will work for you.
Life Insurance With Accelerate Death Benefits – Some policies come with riders that will pay out part, or all, of the death benefit in case of a termina illess or nursing home confinement. This means you can cover your life, but just in case you need it, that money can be used to provide care while you are still alive. You can quote over 50 life insurance.
Life Settlements for Seniors – Investors will purchase permanent policies from older people for some percentage of the death benefit. This all sound like a grim business, but it can actually benefit familis who need the money wreshile the insured person is still alive. Get more information and life settlement quotes here.
What Should You Do About Long Term Care Planning?
As with most other decisions, the right answer will be the one that works for you, and for your family. Take the time to research the suggestions and sit down with one, or more, retirement planners for their advice. In general, any decision you make will be much better for you, and your family, than having no plan at all!
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