How to Plan for Long-Term Care
According to national studies, more than half of Americans will likely need long-term care sometime during their lives. There is more than a 40 percent chance that those over 65 will spend, on average, 2.5 years in a nursing home or other long-term care facility.
If you are counting on Medicare to pick up the tab, they will...for the first 100 days. After that, you are on your own. Which is why obtaining sufficient long-term care insurance will be important to many of us at the end of our lives.
However, the time to make that purchase is not when you need it, but about two or three decades before. The items that will determine how much you will need to invest in a policy include:
Your age. Experts say the ideal time to buy long-term care insurance is when you are in your early 50s so you have 20-25 years before you will need it. By starting earlier, your premiums will be lower.
Elimination period. This is the period of time you elect to wait until your benefits begin after you start receiving care. Most people choose to begin once Medicare is exhausted, but you can delay the start of benefits for as long as you want.
Benefit period. Since the average nursing home stay is 2.5 years, most people purchasing long-term care insurance choose to have a five-year benefit period. The length of time you choose will determine how high your premium will be.
Benefit amount. According to a 2009 MetLife survey, the average daily cost of a nursing home is $200-$220. When you purchase your policy, you will choose the daily benefits amount you elect to receive.
Inflation rider. Long-term care insurance policies have an inflation protection feature that helps your benefits keep pace with inflation. You want to be sure your policy provides enough coverage to make your daily benefits relevant 20-30 years from now.
For more information on long-term care planning, contact our Jacksonville estate planning law firm.
