Did you know that depending on where you live, the average cost of nursing home care for one year is between $50, 000 and $80,000? Even seniors who are in good health now may find that one major illness requires costly long-term care. Whether this means moving to an assisted living facility or nursing home, or hiring visiting nurses to come to your home, it doesn't take long to exhaust the Medicare benefit for long-term care. Seniors are wise to maintain a Long-Term Care Insurance policy.
When you consider the cost of long-term care, and how quickly it could wipe out your life savings, it makes sense to purchase a private long-term care insurance policy. Medicare will pay 100 percent of your long-term care expenses for the first 20 days, followed by a smaller amount for the next 80 days. And even then they only cover "skilled care".
Crosspointe Insurance Advisors understands how important it is for seniors to have Long-Term Care Insurance. That's why we work with multiple carriers to bring our clients the most competitive rates from reputable insurance companies.
What is Long-Term Care Insurance?
Long-Term Care Insurance (LTC) is a policy that pays for the cost of a nursing home, assisted living facility or skilled nursing care. It may also include coverage for Alzheimer's disease and in-home health care costs for seniors over the age of 65.
How much does Long Term Care Insurance cost and when should I buy Long Term Care?
Without a doubt, long-term care insurance can be expensive. Typical costs can start around $1,500 - $2,000 per year for a 55 year-old senior in good health. While this may seem high, it is a much more manageable than paying for long-term care out of your own savings. Plus, the younger you are when you initiate a long-term care policy, the less expensive it will be. We believe the best time to invest in Long Term Care is between the ages of 50 and 60 years old but you can certain purchase Long Term Care coverage earlier or later in your life and the costs will vary at that time.
What is a Long Term Care Partnership Plan?
A Long Term Care partnership plan is a contractual agreement between the insurance carrier and the state in which you live. Not all states offer partnership plans but these types of plans can offer significant benefits for you and your family. Basically, the insurance company has an agreement with the state in which your policy was issued to take over paying for your Long Term Care expenses once your policy's benefits are exhausted.
There are two types of partnership plans available in a few states across the country: Total Asset Disregard and Dollar for Dollar Protection. If you purchase a LTC policy that qualifies for Total Asset Disregard, once your LTC policy benefits have been exhausted the state Medicaid program will take over paying for your LTC expenses and completely disregard any assets in your name. Your policy must meet minimum coverage limitations. For example in Indiana, for a policy issued in 2011 the minimum benefit pool amount to qualify for Total Asset Disregard is $263,990 of total LTC benefits. Dollar for dollar simply protects your assets up to the dollar amount of benefits purchased less than but not equal to $263,990 in Indiana for 2011. Make sure to check with your agent at Crosspointe Insurance to discuss which option is most suitable for you and to review state specific questions.
What should I do next?
Long Term Care insurance can be extremely complicated. When purchasing long-term care policies, seniors should work with an experienced insurance advisor who can read the fine print and explain the various coverage limitations up front.
Crosspointe insurance agents are well-versed on all aspects of Long-Term Care Insurance, and we can help you steer clear of the many unscrupulous insurers who sell LTC policies. We work with many reputable insurance providers who offer reliable long-term care coverage, and we will help you find the most affordable policy to meet your needs.