Why purchase nursing home insurance?
A nursing home stay can mean that a lifetime of savings vanishes right before your eyes like a magician’s trick. In most parts of the United States the cost of a nursing home stay can exceed one thousand dollars a week.
The average nursing home stay is about two and a half years. A cost of over one thousand dollars a week can mean a rapid evaporation of your assets. This can disenfranchise your wife or husband leaving them little or nothing left to use for buying food or medical services. With no insurance plans or policies in place, this can mean that no financial legacy is left behind for your children or grandchildren.
Home health care is also covered by many nursing home insurance plans. Since the cost of home health care can be quite high, buying insurance that covers it can provide important protection for your family.
Because your health can affect your premium and even your eligibility, you must purchase a nursing home insurance policy while you are healthy. Because age affects the price of these policies, you get a much lower rate when you are younger. Many Americans plan ahead and purchase their policies when they are in their forties or fifties.
Purchasing a policy when you are younger means you pay less. Buying a policy also gives you another important benefit. It will cover you starting at an earlier age.
A nursing home is for people who do not need the level of care needed in a hospital, but are unable to live at home. This can mean that a fifty-three year old stroke victim needing longterm care needs to be in a nursing home. Those without family members to take care of them are particularly at risk.
Many living in a nursing home are well under retirement age. A twenty-year old car accident victim with a traumatic brain injury my find that she has no insurance to pay for her stay.
Your health insurance policy is unlikely to cover an extended nursing home stay and you are at risk for being in a nursing home at any age. Many people do not know this and therefore think they have more longterm nursing home protection than they do.
Your health insurance policy probably covers a few months in a skilled nursing facility. It probably does not cover any time in an intermediate care nursing home facility. It probably does not cover any time in a custodial care facility.
Since most nursing home stays are in either intermediate care or custodial care facilities, a nursing home policy is important.
These facilities are full of people whose health insurance policies will not cover the cost of their care. This means that either the state pays their way or the cost comes from their savings. Since the state tries to get all of the assets it can from the people in the nursing home before it will pay, the importance getting this coverage cannot be over emphasized.
Where to Purchase Nursing Home Insurance
You can find rates for nursing home insurance on this site. If you use this site, you will be contacted by an agent who serves your state and who can help you make the right decision about buying coverage. If you prefer to look in the phone book you may find that the term “long term care” is used to describe these types of insurance plans.