| Should I Buy LTC Now, or Wait? | |||
Long-Term Care insurance premiums are based on your age at the time you apply for coverage, so if you are thinking, "I'll wait until I get older," you may want to consider the following.
The Annual Cost of Premium at purchase increases as you become older. If you were to purchase the same exact policy at age 60 ($150 a day) that you purchased at age 40, you would be paying approximately $2,130.98 a year which is $802.87 more per year. At 60 your benefit is only $150 a day, where if the policy were purchased at age 40, you would now have a benefit of $400.00 a day. The premium will be even greater if rates increase during that period.
Long-Term Care Insurance Incurs Rate Increases Periodically. What price quote you received today, may change a month from now due to the carrier's rates being changed. Once you've purchased Long-Term Care insurance, the premium will stay fixed unless the insurer files for an existing business rate increase. This is not an easy process and most carriers will do whatever they can to prevent this type of increase.
The Cost of Long-Term Care Continues to Inflate... The cost depends on the amount and type of care you need and where you get it. These costs are different across the country. Your state insurance department or the insurance counseling program in your state may have costs for your area. You may also refer to your State's Cost of Care by clicking here. These are results from the MetLife Mature Market Institute Cost of Care Surveys.
Most Importantly... Your Health May Change. The present is the only time you can be sure of what your health is... Your health can change at any time. Waiting can be the difference between being approved for long-term care and not.
Nursing Home: The national average cost of nursing home care (semi-private room) was $69,715 per year, or about $191 per day, an increase from $189 per day and $68,965 annually in 2007 (MetLife Mature Market Institute Survey of Nursing Home & Assisted Living Costs 10/2008)
Assisted Living Facilities: Assisted living facilities reported charging an average fee of $3,031 per month, or $3,672 per year. (MetLife Mature Market Institute Survey of Nursing Home & Assisted Living Costs 10/2008)
Home Care Costs: National Average hourly rate for Home Health Care is $20, homemakers/companions is $18, and adult day centers daily rate is $64. (MetLife Mature Market Institute Survey of Adult Day Services & Home Care Costs 9/2008)
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issues associated with Long-Term Care insurance purchase and
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