Even though retirement homes are generally much nicer than they used to be, no one wants to think about the fact that someone may need to help them out with the basic, everyday activities of life. And yet, as we get older, we need to face the fact that the odds are not in our favor. A full 60% of Americans over the age of 65 will need some form of assisted living at some point during their lives.
Unfortunately, most people will put off thinking about this unpleasant subject until it’s too late. There’s nothing worse than seeing the sum total of your life’s work go down the drain paying for retirement homes with assisted living services, nursing homes, or hospice care. Fortunately, if you’re still healthy and willing to face the fact that you’re likely to need assistance at some point in your life, there is something you can do.
Most insurance agencies offer some form of long term care insurance. The basic idea behind this kind of coverage is that you pay your premiums now, while you are still healthy and your insurance will cover the costs of any long term care that you may need.
Most people who still have their faculties and are in reasonably good health can purchase long term care insurance. The average age of a person who buys long term care insurance coverage is 61, but it is becoming more and more common for people to purchase the policies while they are younger. The time to buy long term care insurance really is before you have a need to look into retirement homes.
The cost of long term care insurance varies widely depending on your circumstances. The main factors in determining the cost of your coverage are:
- Your health
- Your age
- Benefit amount . The amount that your insurance company agrees to pay per month or day when you are in an assisted living facility.
- Duration. The maximum amount of time your policy will continue to pay out benefits.
- Elimination period. This is like a deductible. Basically, it’s the number of days you need to pay for out of your resources before your insurance kicks in and pays for your assisted living expenses.
