Archive for the ‘Assisted living facility’ Tag
The fact is long-term care (LTC) — whether it’s in a nursing home, assisted living facility, or in your our own home—can be expensive. Without careful planning, you may exhaust your assets trying to pay the bills. According to the Metlife Mature Market Institute, the average cost for one year’s stay in a nursing home is $66,153 ($181 per day). With inflation these figures are expected to rise in the future.
Your decision should be based on your age, health, financial resources, goals, and whether or not you have family members who are able and willing to provide the necessary help. Following are options you should consider:
- To self-fund;
- To self-fund and purchase life insurance to replace assets used for long-term care;
- Purchase long-term care insurance to cover expected costs.
The self-funders have sufficient assets to pay for their long-term care expenses.
The second group self-fund their long-term care expenses. They also purchase life insurance to replenish their net egg and pass on an inheritance to the surviving spouse or children.
The third group buy long-term care insurance with an elimination period. Most insurers offer elimination periods are from 0 to 180 days.
Insurance premium. Your long-term care policy premium will depend on:
- Your age when the policy is issued;
- The maximum daily benefit that you choose;
- The maximum lifetime benefit period that you select;
- The length of the elimination period in the policy; and
- Any optional benefits you choose to add to your policy.
To give you with a guideline as to long-term care insurance premium, below are two charts prepared by the Maine Bureau of Insurance comparing 1st year premium for $150 per day and $250 per day benefits.
Planning for your long-term care needs is important. Contact us at email@example.com and let’ explore your options and the related cost.
Paul Sid, CPA CFA
Helping You to Make Better Personal Insurance Decisions
Today Most of Us Live Longer. Save More and Safe Often.