Getting older comes with its own set of challenges. However, facing these challenges can prove to be difficult without the right insurance. With long term care insurance, you won’t have to worry about not receiving care.
Understanding Long Term Care Insurance
Long term care insurance is a form of coverage that is commonly acquired by people in their mid-60s, but some get it in their 50s. This insurance is mainly for covering expenses such as nursing home facilities and adult daycares. To qualify for this insurance, you either have to have a disability that requires constant attention or be in the age demographic.
Is it Worth Buying?
The question that many people struggle to answer is if long term care insurance is worth the price. People should expect to pay an average of $3,335 per year to cover a couple of healthy 60-year-olds on a plan that pays out a $150 daily benefit for up to three years.
Income Level. Your current net worth is one of the main factors. If you are wealthy, net worth over $1M, you can afford to pay out of pocket. Similarly, if you make below $30,000, you are not likely to afford the insurance payments.
Family Support System. You may have children, relatives or friends who can provide long-term care should you need it. It’s important to assess how much time and effort you can expect to get from them.
What Age Should You Get The Insurance?
Its typically recommended purchasing long term care insurance before the age of 60. However, buying the policy before the age of 50 is generally not recommended because it’s statically unlikely you will be filing a claim before that age. Most individuals start filing a claim beginning in their 70’s.
Long term care insurance provides a lot of benefits. But it’s recommended that you only get this insurance if it’s necessary. There’s no point in paying for an insurance policy that you don’t need.