How to pay for your parents’ long-term care
It is the reality for many, that when you get older, you may need extra care and assistance during your day-to-day lives.
This extra care comes in many different forms, but regardless, it can be costly, especially if care is needed full-time. Lucky for everyone, there is a specific insurance plan that helps cover the costs of these pricey caregivers – Long Term Care Insurance (LTC) from National Educational Services.
Breaking Down the Cost of Long-Term Care
There are multiple options when it comes to finding extra care for elders; professional nursing facilities, assisted living centers, and in-home caregivers. While there are multiple routes to go down for finding this care, they are all very expensive.
Average Cost of Care
On average, the annual cost of living in a professional nursing facility is $74,000, $36,000 for an assisted living center, and around $31,000 for in-home care. While, an insurance plan, such as LTC that helps cover the cost of these expensive plans, is only around $2,000 annually.
Underestimating Policies
LTC insurance policies have been around for years, but in the beginning years, numerous insurance companies found a flaw in their pricing in comparison to the payout of claims.
As a result of this, many companies dropped the coverage, while others increased costs enormously or some even provided permanent life insurance to their customers, which would allow them to pay for the additional care with the cash value of their policies.
How to Afford the Long-Term Care Expenses
Long Term Care Insurance is a great option for many when it comes to paying for living assistance expenses. LTC may be a great solution for you and your parents in multiple scenarios.
- Concern about protecting assets and maintaining financial freedom
- Do not want to rely on family to provide care and are needing additional care
- Can afford the premiums of LTC
- Face policy restrictions, such as pre-existing medical conditions
Notable Features & Benefits Of LTC Coverage
In addition to helping cover the cost-of-living assistance, LTC provides numerous other benefits to policyholders.
- Guaranteed renewable without additional medical exams
- In-home health care coverage
- Inflation rider will allow your daily benefit to staying consistent with inflation
Children Can Avoid Breaking the Bank to Pay Health Care Bills
Across the country, twenty-nine states have passed legislation in favor of caregivers when it comes to unpaid living assistance bills. This legislation, referred to as the Filial Responsibility law, allows nursing homes and similar facilities to sue the children of patients who have outstanding bills. While this legislation has been in existence for years now, it was not easily enforceable until now. Currently, Medicaid is challenging to qualify for and LTC policies are expensive, leaving more outstanding bills.
Are You Prepared To Pay The Skyrocketing Costs Of Long-Term Care?
It has always been the legal responsibility of parents to financially provide for their children, and now it seems that it is becoming the legal responsibility of children to provide financially for their parents.
Are you and your parents prepared for these expenses?
