Long-Term Care Insurance Cost: When Would Long-Term Care Insurance Begin Paying Out?

By Steve Elliott | October 25, 2021 | Comments Off on Long-Term Care Insurance Cost: When Would Long-Term Care Insurance Begin Paying Out?

Carrying a long-term care insurance policy is a great idea. If you are in your late 30s, mid-40s, or early 50s and have just started carrying long-term care insurance, you and your spouse or other direct dependent may very well be protected against the increasing cost of long-term care. Talking to an agent about long-term care insurance cost can factor into your decision.

Long-Term Care Insurance Cost San Marcos CA - Long-Term Care Insurance Cost: When Would Long-Term Care Insurance Begin Paying Out?

Long-Term Care Insurance Cost San Marcos CA – Long-Term Care Insurance Cost: When Would Long-Term Care Insurance Begin Paying Out?

The ‘sweet spot’ for long-term care insurance is by your mid 50s, so if you already have it by this age, you are doing well. That’s because the risk of certain health issues and other medical emergencies will increase from that point forward, no matter your family history.

If you haven’t considered long-term care insurance yet and you are already 55 or even slightly older, now is the time to look into it. Wait too long, especially with a family history of serious health risks, and you could find the policy is cost prohibitive or even be denied coverage.

There are many questions people have about long-term care insurance.

Most people have never heard about long-term care insurance. That’s because it’s not one of those things that gets a lot of advertising and marketing dollars behind it. In reality, though, next to life insurance, it can be incredibly beneficial, especially if you have significant savings, assets, and retirement investments.

Why is this the case? Well, consider the possibility you may need some type of long-term care in your late 60s or 70s. What would happen?

Let’s say, for example, you need to spend several months or even a year or longer in a nursing home. You may assume that your primary health insurance provider is going to cover that. Most health insurance policies will not provide coverage for long-term care. Yes, they might provide some assistance or coverage for short-term care, such as a few weeks, but not for long-term care.

What about Medicaid? Again, there is a common misconception people have that Medicaid is simply going to cover these long-term care expenses after you are 67 or 69 or whatever the official retirement age happens to be when you get there.

In reality, Medicaid is only going to cover long-term care costs, mostly in a nursing home, only after you have used up all of your available assets and personal savings. That may include most of your retirement investments. Sound unfair? As the way it is.

So, when would a policy begin paying out?

In other words, how long after you’ve been receiving long-term care will the policy start covering it? That depends on the policy. On average, this would usually begin about 90 days after you have started receiving long-term care.

Let’s say, for example, your primary health insurance policy is going to cover short-term care, such as six weeks. That’s about a month and a half. That means you would have to pay a month and a half out-of-pocket.

Is that a big deal? It depends on where you live. If you live in Alaska, for example, where nursing home costs exceed $300,000 annually, you could be looking at over $37,500 before the policy kicks in.

You may be able to adjust this aspect of the policy, so make sure you speak to a qualified agent or broker about that as soon as possible and get a handle on what long-term care insurance cost is in your area.

If you or a loved-one are considering Long-Term Care Insurance Cost in San Marcos CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.

Steve Elliott
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