There are several things to look for in a long term care or nursing home insurance policy. You want to buy from a company that will keep its promises to you. You want to get the right amount. You want inflation protection. You want the right length of coverage. You want a good price.
Since the cost of nursing home care is so expensive today, this can be one of the most important parts of planning for your financial future. Failure to sew up the hole in your pocket can mean that you wind up with nothing, no matter how much money you put in.
Medicare provides very limited coverage for nursing homes and home health care. You may have to spend virtually all your savings, assets and income on your care before Medicaid will pay. (This means that the money you saved all your life goes to the government instead of your children.)
When buying nursing home insurance or any other type of insurance, you want to buy from a company that will be there when you need them. The companies that do the most advertising are often the most financially stable, but you shouldn’t limit yourself to only those companies.
You can Start Researching Companies by Taking the Following Steps:
- Ask your state’s department of insurance to see if a given company is approved to sell in your area. (You can also ask them for a list of approved companies that sell a given line of insurance.)
- Ask your department of insurance about complaints against the company.
- See if they are financially stable by checking their AM Best rating and/or Standard and Poors rating.
How Much Coverage Do You Need?
There is no way to tell exactly how much coverage you will need since the timing of your need for care is unknown. However, you can get a good idea of what it costs to be in a nursing home today. You can simply call various nursing homes to see what their current rates are. Be sure to contact facilities that provide the level of service you want and that are in the right geographic area.
Inflation Protection is Important
Since you will hopefully live for many years in your own home before you will need care in a nursing home or home healthcare services, inflation protection is important. Most plans will allow you to purchase an inflation rider.
How Long Will You Need Care?
If you can afford it you should consider coverage won’t end if you happen to live too long. You can save on your monthly premiums by purchasing a policy that only covers you for a certain number of years as a nursing home resident. However, the increase in premiums is generally worth it because prices for longtermcare are likely to increase also.
The average nursing home stay is only a few years, but some people will live in a nursing home for over a decade. One reason for this is that not everybody goes to a nursing home as an elderly person. Often a non senior who has a medical condition will be too sick to stay home, but not sick enough to be in a hospital.
This is why it is important to think carefully before deciding to limit the number of years your policy will pay for your care. You should not have to worry about living past when your longterm care policy benefits run out.
How Much Does it Cost?
The prices vary quite a bit from company to company. Your age and health impact the rate as well. The premiums can look like mortgage payments if you wait too long to buy a policy. However, they are generally affordable if you purchase a policy before retirement age if qualifying medically is not an issue. The medication you take can impact the price of the program, but not all medical conditions are serious enough to make a difference.
You can get more information about how the policies work you can request nursing home insurance rates rates from this website. You will get information about prices, the terms and conditions of the various policies. To get the other information you need to assist you in making a decision you will be given contact information for an agent who serves your local market. The agents we work with have typically assisted clients for years and look forward to helping you reach your personal financial goals.