By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    improving patient experience
    6 Ways to Improve Patient Satisfaction Within Hospitals
    December 1, 2021
    degree for healthcare job
    What Are The Health Benefits Of Having A Degree?
    March 9, 2022
    custom software development is changing healthcare
    Digital Customer Journey Mapping and its Importance for Healthcare
    July 21, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Can Thinking Younger Make You Live Longer?
    April 20, 2011
    Image
    Obesity’s Outlook Unchanged
    June 13, 2011
    When It’s An Emergency Elderly Not Treated As Well in Hospitals
    July 16, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Explaining Long Term Care Insurance Costs to the Non-Believers
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Explaining Long Term Care Insurance Costs to the Non-Believers
Finance

Explaining Long Term Care Insurance Costs to the Non-Believers

Maria Castor Handley
Last updated: October 31, 2013 8:11 am
Maria Castor Handley
Share
7 Min Read
long-term care costs
SHARE

long-term care costsLong term care insurance costs are intimidating to many Americans since they represents another expense to pay on top of bills, health insurance, life insurance, taxes, and more. What makes it all the more unappealing is that, on top of being far from the cheap side, it’s also contingent only in the case that you’ll indeed require long term care in the future.

long-term care costsLong term care insurance costs are intimidating to many Americans since they represents another expense to pay on top of bills, health insurance, life insurance, taxes, and more. What makes it all the more unappealing is that, on top of being far from the cheap side, it’s also contingent only in the case that you’ll indeed require long term care in the future. What if you don’t require in-home care or nursing services later? The money you spent paying for your premiums would seem like it’s gone to waste.

What these naysayers fail to realize is that the longer you live, the more likely you’ll require LTC services. In fact, it’s almost a certainty. Even if you somehow manage to avoid any major sicknesses or evade injuries and disabilities, every year, your overall health declines slowly, and it’s only a matter of time before you will need assistance even in just your day to day activities. 

Understanding the real costs

More Read

invoice factoring can help medical transcription
How Invoice Factoring Can Help Medical Transcription Companies
FICO Blows Off Medical Debt for Credit Score: It’s About Time
Vermont Moves Closer to Single Payer Delivery
Price Transparency: What to Do and What Not to Do
Unnecessary Regulations that Increase Prescription Drug Costs

The real costs of actual long term care services are huge in comparison to the costs of insurance. Today, staying in a nursing home for a year means shelling out an average of $70,000, with some going above to hundreds of thousands for finer private rooms. Studies have shown that the average stay in a home has increased to three years, and if you do the calculation, you’ll see that paying for this out of pocket would take a big bite out of your savings.

There are also some people who put off getting their policy later, when they are actually nearing the age where they’ll need LTC. Though this means paying your premium for a shorter period of time, those premiums will actually be higher, and you could have saved up a lot more by acquiring a policy several years ago at a lower rate.

Saving on costs

According to ACSIA1, long term care insurance costs are affordable, and can be adjusted depending on your needs, budget, and other preferences. The number one method to save on your policy is to buy one while you’re still young. Those who purchase a plan while at their 50s will find their premiums to be significantly lower than if they bought at 65. Moreover, you can get an even bigger discount since you’ll be healthy and at the prime of your health during that time. And another pleasant surprise is that your maximum benefit will surely grow and be much larger over time.

Your current health at the time you apply is critical in determining the price of your premiums. Insurance companies issue higher rates for those who have medical conditions and those who are at risk of requiring more intensive care in the future. This means that you shouldn’t wait until you’re suffering from symptoms of sicknesses that would require care before purchasing your plan, as this would definitely result in higher premiums or even make you uninsurable.

Having a policy in place that you would be ready to benefit from in the future is worth so much more than the long term care insurance costs that you’ve paid for over the years. Secure your old age knowing that you’ll be taken care of when the time comes.

A tale likely to happen

Here’s a cautionary tale for those who do not believe in the necessity for a separate and comprehensive LTC policy:

John, a 55-year-old manager, looks up the costs of an LTC policy in his area. He has just been to the doctor and was told to he was symptom-free. He decides to cut down on his premiums by getting coverage only for in-home assistance, figuring he will be healthy enough to avoid nursing facilities.

So when his benefit triggers a few decades later, he finds himself taking out funds from his savings and from selling his assets to pay for expensive medications and therapy, as he suddenly had a mild stroke a few years ago. With coverage only for in-home care, he has to pay for unanticipated expenses out of pocket, and is in danger of losing his nest egg.

A story similar to this has been common enough in today’s retirees. Underestimating the effects of medical inflation to the costs of care in the future is one mistake you shouldn’t make, and it’s very probable that they would become exorbitant by the time you require LTC. 

Avoiding future risks3

Your financial stability today should be all the more reason to get as much LTC coverage as you can afford, not less. While you are at the peak of your productivity, planning and preparing for future unforeseen eventualities will pay back tenfold once they do transpire. This kind of readiness would be a blessing of foresight decades later when you find yourself needing it.

You don’t need to make a hasty decision when acquiring your policy. Take time to review long term care quotes2 thoroughly, and with a financial and health advisor if possible, to get the most out of your policy.

Sources:

1www.ltcoptions.com/long-term-care-insurance-costs/

2www.aaltci.org/long-term-care-insurance/learning-center/best-age-to-buy-long-term-care-insurance.php

3www.cbsnews.com/8301-505146_162-57584680/long-term-care-ignore-it-at-your-own-peril/

(long term care / shutterstock)

TAGGED:insurancelong-term care
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025
Learn how to Renew your Medical Card in West Virginia
Learn how to Renew your Medical Card in West Virginia
Health
May 15, 2025
Dr. Klaus Rentrop Shares Acute Myocardial Infarction heart treatment
Dr. Klaus Rentrop Shares Acute Myocardial Infarction
Cardiology
May 13, 2025

You Might also Like

Simplified Access to Patient Data Saves Clinicians Time

May 16, 2013

Trashing Charlie Baker on Outsourcing: Uncalled For

October 19, 2014

Online Bill Pay Starts to Accelerate in Healthcare

March 22, 2015
Medical Video Marketing
BusinesseHealthFinanceSocial Media

Surgery Videos as an Online Medical Marketing Technique

September 22, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?