Although not everyone needs insurance to cover their nursing home costs or related long term care, that doesn’t mean that they should factor out the possibility that they may need it in the future. Many people don’t consider having an extended stay in a nursing home or long term care facility to be a threat to their financial security when they are older, because they consider it to be a brief visit. Likewise, most people only become interested in the concept of long term care insurance coverage when they have aged. However, by that time, your health history may be able to exclude you from coverage, and if it is approved, then you might find that the rates are more expensive than they would have been if you had applied earlier. A great example of this can be seen in the fact that at age 50 the traditional long term care insurance policy will cost around $900 a year, but by age 79, it would cost around $6000.
Most young employees are never even concerned about long term care insurance, so they don’t buy into it. They are more likely to be interested in buying a home, saving for their child’s education, or handling their retirement. It is difficult to accomplish this type of financial planning goals and have money available to pay for insurance at that age. That is especially true when you are considering the cost of long term care needs that may not even occur until 30 or 50 years later. For these people, they are thinking about priorities. On another level, some individuals are thinking that they will never find themselves in a situation where they will need long term insurance care. This could be possible; although everyone eventually ages, not all of those individuals will need to spend time in a nursing home.
Based on information from the Department of Health and Human Services, people who are aged 65 and over have a 40 percent chance of entering a nursing home at some point in their lives. This risk is around 50 percent higher for women than men. If you check out a nursing home in your area, you will see how these statistics apply to real life. Most of the residents in these homes are women. Around 20 percent of those people are aged 85 and older. The truth of the matter is that as elderly lives are being extended through the use of medical technology and care, there is going to be a higher risk for needing long term care. This is only going to increase as the future progresses.
Medicare, which is known to pick up around 11 percent of nursing home costs throughout the country, is only able to partially cover the cost of the first 100 days in a nursing home. This coverage is only provided if the skilled care is preceded by a stay within a hospital. In this regard, it’s best to get a long term insurance care plan because many seniors have already realized that they cannot rely on Medicare to cover the costs of their aid. By starting early, men and women can ensure that their care coverage will be affordable and that it will be available when they need it the most.