When doing long term care planning, one important consideration as a way to help pay for long term care, whether it is care at home or in a facility, is LONG TERM CARE INSURANCE. This type of insurance is purchased to help deal the costs of long term care, which may be $12,000 to $15,000 per month for care at home, $3,000 to $6,000 per month for a personal care home or assisted living facility and $8,000 to $10,000 per month for nursing facility care. Long term care insurance can shift some of the risk of paying for long term care to an insurance carrier and, therefore, protect your assets.
As part of long term care planning, people sometimes say that long term care insurance is expensive. However, the cost of the policy depends on a variety of factors, such as: the age when the insurance is purchased (the younger the buyer’s age, the lower the cost); the daily benefit amount (the higher the daily benefit, the higher the cost); the length of coverage (the longer the policy pays, the higher the cost); the length of the elimination period (when the coverage starts – the longer the elimination period, the lower the cost); and whether or not there is inflation protection (a simple inflation rider is a lower cost than a compound inflation rider). It is very possible to buy a reasonably priced long term care insurance policy, which can help to protect your savings, protect your estate plan and provide security to your family. Long term care insurance can also help make the choices for care easier and should be considered when doing long term care planning.