The long term care industry seems to be struggling with insurance companies deciding to raise the premiums by up to 80 percent. Many insurers have completely disappeared from the market because of the amount of shrinking profits that have occurred over the years. However, for many consumers, the large cost of long term care is too large for them to be able to avoid getting some type of coverage. They are even willing to pay thousands of dollars every ear in premium costs in order to ensure that they are well protected.
The average cost of a nursing home in Manhattan is around $180,000 per year based on information from Genworth’s Cost of Care Survey. The cost in Queens is around $140,000. Of course, many people don’t have this type of money available on their own. They have lived in middle class for all of their lives and have not been able to earn enough money based on their salaries to cover these kinds of long term care costs. For those who have low income, the possibility is even less available; they have no means of having long term care based on these costs and their continually rising nature.
Many people then think that they can turn to Medicaid to cover their long term care costs when they are older. However, most people don’t understand that Medicare doesn’t cover much of these long term care costs. They are only able to cover those who have low income, low assets, and low costs.
If you were to decide that you wanted to invest into a long term care coverage plan, is there any reflection that you would truly need it? There’s no guarantee on these areas of usage. Some people invest in a plan and use it when they reach their senior years, while other people invest in a plan and realize that they never even needed it. It’s a risk that many take in order to ensure that they will be able to afford the costs if they ever occur. And although there are some who skip out on investing in long term care coverage because they believe it’s unnecessary and it will never be used, there are still many who invest purely for the peace of mind.
Even if the costs of the policy can be thousands of dollars, people who invest in long term care insurance coverage hold a different perspective. While they are spending thousands to keep their policy, they are actually helping themselves to save the thousands of dollars on the cost for the care itself. For many people, the insurance is used to ensure that they will be able to afford that $140,000 nursing care home even if they don’ t have the money available right now. With the uncertainty of health and aging as the years progress, it is long term care insurance coverage that provides these people with the peace of mind of knowing that they will at least be well cared for, even if they are not in the best health as they age.