Factors That Drive Long Term Care insurance Costs
What is long term care insurance and why you should considering buying a policy from a reputable insurance provider? With the increasing cost of care, you might want to consider purchasing policies with long term care coverage. Long term care insurance costs are incomparable to how much you will be spending per day if you will stay in a long term care facility where health professionals can monitor you.
What Is Long Term Care insurance?
Long Term care insurance covers custodial care needed when you become so weak and feeble because of old age or if you have been diagnosed of a serious disease. Long term care is usually needed when you are unable to perform at least two activities of daily living like eating or dressing. There are new policies that cover dementia care as well.
Factors That Determine Your Premiums
It is important to know that cost of long-term care insurance vary. Carriers determine long term care premiums based on your age and health at the time the policy is issued. Your choice of elimination period also affects your premium. The rule of thumb is the longer you can pay your expenses before the company begins paying benefits, the lower your premium. Rates are also higher for policies with higher benefit amounts and longer payment durations. Another factor that affects cost is your area of residence. Where you reside affect the cost of your coverage. Optional benefits like inflation protection that you want to add to your policy also increases your premiums.
Should You Buy Insurance Or Use Medicare And Medicaid?
Although Medicare and Medicaid can help cover for a number of long term care services, they follow strict guidelines. First, before you become eligible, you need to have low income and a certain number of assets.
Moreover, their long term care benefits are not that extensive as compared to private long term care insurance. For example, Medicare will help pay for a short nursing home stay if you are hospitalized for at least three days and you require skilled care. For the first twenty days, Medicare will cover all your costs. However, from day 21 up to day 100, you need to co-pay and shoulder some of the expenses. After that, Medicare runs out and you are responsible for paying for all the necessary long term care services.
Medicaid, on the other hand, has more long term care benefits than Medicare. However, before you can receive any benefits, you are required to spend down your assets.
If you want to buy long term care insurance and at the same time reduce your premium, you need to compare costs and coverage offered by different insurance providers. You can compare insurance costs online. There are several websites that offer comparison analysis, which allows you to find the best insurance plan that will fit your needs.
Long term care insurance cost varies. There are several factors that affects premium price like your age and health. Knowing these factors will help you reduce long term care insurance premium. If you want to know more about long term care insurance, you can find various websites that provide answers to your common questions about LTCI coverage, costs, risks and benefits.
For more information about long term care insurance rates, visit http://www.ltcoptions.com/.