Before you purchase a long-term care insurance policy, it’s important to understand what you’re getting. Most people don’t buy into an insurance policy unless they have a pretty good idea what they will be getting out of it, the cost, and several other factors. Unfortunately, with the Internet, people focus on price first, not truly understanding that to save money on any insurance policy, they are often giving up something else along the way.
When you’re talking about long-term care insurance, it is crucial that you understand some key factors to ensure that you and your family are protected in the event you or your dependent (which often may include a spouse) requires some type of long-term care.
Below are a few factors you might want to look into more closely to ensure you purchase the right long-term care insurance policy for your specific needs.
Make sure it protects against inflation.
You may understand the cost of long-term care right now, including nursing homes, home care, assisted living, and so forth, but what about 10 or 20 years from now? Most likely, hopefully, neither you nor your dependent requires any type of long-term care for at least a decade or more, if at all, but how much is that going to be after inflation is calculated?
It could be significantly higher than what it is now, but if you purchase a long-term care insurance policy that doesn’t protect against inflation, what you expected to get may only be a thinner percentage of that number or length of time.
Understand the daily/monthly benefit amount.
The amount a long-term care insurance policy will pay out for long-term care will likely have set daily and monthly maximums. Some policies will give you the option of choosing between $50 per day, for example, all the way up to $500 per day.
When you understand the cost of an assisted living facility might run upwards of $75,000 per year and a nursing home closing in on $100,000 per year, you need to make sure that you will be covered with the daily/monthly benefit amount.
Consider the elimination period.
This is referring to how long you have to wait before you can begin receiving long-term care benefits. It is similar to a deductible on a health insurance policy. You will have to pay out-of-pocket for some type of care, and it can range anywhere from a month to an entire year.
As long as you are clear on these factors, you should be able to choose the optimal long-term care insurance policy for your specific needs and get a quote that includes those needs.
If you or a loved-one are considering Long-Term Care Insurance Quote in Oceanside CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.