Will Your Long-Term Care Insurance Policy Adjust to Inflation?
Inflation essentially involves the increased price of goods and services over time. There are numerous factors that go into inflation, causing it, slowing it down, accelerating it, and so forth, but that’s not the purview of this blog. What we want to talk about is how inflation can impact long-term care costs in the future.
Long-Term Care Insurance Companies San Marcos CA – Will Your Long-Term Care Insurance Policy Adjust to Inflation?
Have you ever stopped to consider how much long-term care costs right now? If not, don’t feel bad; most people haven’t. In fact, if you were to tell somebody that the average cost of a one-year stay in a nursing home in Alaska is over $300,000, most people would be completely surprised. They may not even believe it.
In fact, their jaws could hit the floor. While that’s an extreme example, the average cost of nursing home care in the United States is fast approaching $85,000. Assisted living is not far behind. Home care is the most affordable long-term care option at the moment, but even that, for full-time, 40 hour a week care, it averages about $45,000 annually.
This is why long-term care insurance is so essential.
Because of the rising cost of long-term care in this country, a person could quickly see their savings, retirement investments, and even their asset being completely obliterated within a few short years. An average long-term care insurance policy will pay out for three years of long-term care, but that’s not a hard and fast rule. It’s important to understand the policy you purchase to ensure you’re protected the way you expect.
Also, it’s important to realize not all long-term care insurance policies are going to take inflation into account. You might have a policy that covers $150,000 of long-term care for a period of three years, which may be perfect for home care, only to realize 15 years from now it costs $225,000. Suddenly, you would be on the hook for $75,000 of that care because of inflation.
Find out what this policy will cover.
Not all long-term care insurance policies are the same, just as not all automobile insurance or homeowner’s insurance policies are exactly the same. You need to understand what your requirements are, what your needs might be, and how you want to protect your family and savings in the future. Whatever policy you choose, just make sure it’s going to take into account inflationary increases in the cost of long-term care.
It’s best to sit down with an experienced broker or advisor from a long-term care insurance services company to go over all of your options before choosing a long-term care insurance policy. Give us a call today.
If you or a loved-one are considering Long-Term Care Insurance Companies 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.
I work with all the major insurance companies and my objective is to help my clients determine if long term care protection makes sense for them and if so, to help them shop the market to find the best company at the best rate
I specialize in Traditional Long Term Care Insurance as well as Hybrid Long Term Care Plans which are either a combination of Life Insurance and Long Term Care or an Annuity Plan with Long Term Care
I’ve been specializing exclusively in Long-Term Care Insurance Planning for over 21 years.
Steve was recognized as a 2003 Long Term Care Expert of the Year at The National Long Term Care Producers Summit
2006 was awarded Senior Market Advisor of the Year Finalist by Senior Market Advisor Magazine
National Speaker for Numerous Industry Meetings
Awarded Nations Top 10 Agent 8 times by the American Association of Long Term Care Insurance
Author of numerous published articles on long term care planning
- How Much Wil Long-Term Care Insurance Cost? - October 29, 2024
- Is It Too Late To Get Long-Term Care Insurance For My Parent? - October 24, 2024
- How Much Does Long-Term Care Insurance Cost? - October 14, 2024