Extended life spans and rising health care costs are prompting more people to consider long term care insurance coverage. A person of any age may need Long Term Care Insurance as a result of an accident or injury, a chronic illness or a cognitive impairment. According to the US Department of Health & Human Services, 70% of people over the age of 65 will need some type of long term care during their lifetime. Of those, 51% will need care for up to 5 years. Don't think that long term care insurance is just for the elderly, 40% of the people currently receiving long term care are working age adults between the ages of 18 and 64.
The average cost of care nationally is $204 per day or over $73,000 per year. Long term care needs can place a great financial burden on you and your family if you are not prepared. This care may be in your own home, assisted living community or in a nursing home. Major medical insurance, including Medicare and Tri-Care do not cover this expense.
Long Term Care insurance is designed to be flexible, allowing you to control the cost in relation to the benefits you will receive. These policies can be confusing. Customizing the right policy for your family's needs is important. A good policy will help protect your assets and your estate, will give you more control over your future care and will provide peace of mind to assure that you will not be a burden to your loved ones.
The biggest mistake people make is waiting too long to consider coverage. These policy premiums are based on your age and your health. The younger you are, the more affordable these policies are. The healthier you are, the easier it is to qualify.