Covering the increase in long-term care costs has been the subject of many debates and discussions for several years now. And if the past is an indication of anything, the subject must remain in the center of attention for years to come.
The cost of nursing homes in our area is an average of $ 150.00 per day for custodian care and an average of average on average more than a year … 388 days exactly. Using these numbers, the cost reaches $ 58.200.00.
This is a cost that not many people can bear themselves.
There are several ways for long-term care, both at home or in nursing homes, to be financed.
1. Your own payment, this one is quite clear. You pay bills with personal savings and assets. The problem with this option is also clear. Many people don’t have such money lying and if they do it, they might have planned to use it for something else besides paying the fee of nursing homes.
2. Medicaid. This option is for community segments that have some sufficient assets and income to qualify for assistance from the country to pay nursing homes. This option becomes increasingly difficult to qualify for. With the state budget stretching to the limit, most countries have tightened the requirements for individuals to qualify for this type of assistance.
3. Life insurance and annuity. Recent innovations in the insurance industry have brought this financial vehicle to the arena of long-term care. One option is the purchase of life insurance policy which includes enabling benefits to be insured to use a portion of the number of death benefits to pay long-term care, based on certain requirements and limits.
With annuities, the withdrawal is permitted, without submitting or early penalty to help pay long-term care costs. This option is quite new and is a product that develops in the insurance market. If you want to investigate this option, you need to do a thorough test, check it out thoroughly and above all, talk to the expert advisor you trust.
4. Long-term care insurance. (LTCI). This product has grown and matured for years. The number of insurance companies offering this policy has been significantly reduced over the years. Someone will assume that the company left in the market is committed to the market and may have found it when it comes to prices and guarantees this policy.
This type of policy has a number of daily benefits stated in the number of dollars to be paid on coverage activation. Other things that affect premiums are the waiting period which number must be done after entering the maintenance facility before the daily benefits begin and the benefit period which is the amount of time to be paid.
Deciding how you will pay for long-term care is a decision that needs to be made well before the need for care.
Like other financial decisions, this must be done after considering all facts that are relevant to input from the source of trust that specializes in this type of decision.