How Much Does Long-Term Care Insurance Cost?

By Steve Elliott | October 14, 2024 | Comments Off on How Much Does Long-Term Care Insurance Cost?

If your senior mom or dad wants to continue living at home as they age, now is the time to start thinking about the costs of home care. Most medical insurance plans don’t pay for home care or other expenses related to your senior mom or dad living at home on their own, but long-term care insurance does. But how much will long-term care insurance cost them?

Long-Term Care Insurance Cost Carmel Valley CA - How Much Does Long-Term Care Insurance Cost?

Long-Term Care Insurance Cost Carmel Valley CA – How Much Does Long-Term Care Insurance Cost?

Long-term care insurance is a great way to make sure that your senior parent can pay for the care they need at home without using up all of their savings or retirement money. And it’s not too late to buy long-term care insurance, even if your parent is already a senior living at home.

So how much does long-term care insurance cost? There’s no easy answer to that question. Every long-term care insurance policy is unique based on what it covers and what the requirements of the policy are, so the best way to figure out the cost of long-term care insurance is to get a quote for your senior mom or dad.

But in general, the cost of a long-term care insurance policy depends on:

Age at the Time of Purchase

Age is one of the most significant factors affecting long-term care insurance costs. The younger the person being insured is when you buy the policy, the lower the premiums will be.

This is because younger individuals are less likely to need immediate care, allowing the insurance company to collect premiums over a longer period. As the insured’s age increases, the cost goes up, so they don’t want to buy long-term care insurance.

Health Status

Your senior parent’s health at the time of purchasing the policy also plays a major role. Insurance companies assess your mom or dad’s current health conditions and medical history when determining premiums.

Seniors in good health will generally pay lower premiums. If your mom or dad has pre-existing conditions, chronic illnesses, or a history of serious medical issues, they may face higher premiums.

Coverage Amount and Benefit Period

The more coverage you want for your mom or dad, the more expensive the policy will be. Policies typically offer different coverage options based on:

Daily Benefit Amount: This is the amount the policy will pay for each day of care, such as $150 or $200 per day. Higher daily benefits mean higher premiums.

Benefit Period: This refers to how long the policy will pay for care. Common options include 3 years, 5 years, or lifetime coverage. Longer benefit periods result in higher costs because the insurance company is taking on more risk.

Elimination Period

The elimination period, also called the waiting period, is the number of days before the insurance coverage kicks in. Typical elimination periods range from 30 to 90 days. A longer elimination period will lower the cost of the policy.

Inflation Protection

Inflation protection adjusts your mom or dad’s coverage to keep up with rising care costs. There are two common types:

Simple Inflation Protection: Increases the daily benefit by a fixed percentage each year.

Compound Inflation Protection: Increases the daily benefit based on a compounding rate, providing more substantial increases over time. Policies with inflation protection cost significantly more but offer better coverage in the future, especially as care costs rise.

Optional Riders

Additional riders or benefits can be added to a policy, increasing its cost. Riders can include things like care for recovery after a hospital stay, additional benefits specific to certain health conditions, or extra care based on the needs of seniors with certain conditions.

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

Steve Elliott
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