||Should I Buy LTC Now, or Wait?
At What Age Should You Buy Long-Term Care?
Long-Term Care insurance premiums are based on
your age at the time you apply for coverage, so if you are thinking,
"I'll wait until I get older," you may want to consider the following.
The Annual Cost of Premium at purchase
increases as you become older. If you were to purchase the same
exact policy at age 60 ($150 a day) that you purchased at age 40, you
would be paying approximately $2,130.98 a year which is $802.87 more
per year. At 60 your benefit is only $150 a day, where if the policy
were purchased at age 40, you would now have a benefit of $400.00 a
day. The premium will be even greater if rates increase during that
Long-Term Care Insurance Incurs Rate
Increases Periodically. What price quote you received today,
may change a month from now due to the carrier's rates being
changed. Once you've purchased Long-Term Care insurance, the premium
will stay fixed unless the insurer files for an existing business
rate increase. This is not an easy process and most carriers will do
whatever they can to prevent this type of increase.
The Cost of Long-Term Care Continues to
Inflate... The cost depends on the amount and type of care you
need and where you get it. These costs are different across the
country. Your state insurance department or the insurance counseling
program in your state may have costs for your area. You may also refer
to your State's Cost of Care by clicking here.
These are results from
the MetLife Mature Market Institute Cost of Care Surveys.
Most Importantly... Your Health May
Change. The present is the only time you can be sure of what
your health is... Your health can change at any time. Waiting can be the
difference between being approved for long-term care and not.
Average Of Cost of Care in 2008.
Nursing Home: The national
average cost of nursing home care (semi-private room) was $69,715 per
year, or about $191 per day, an increase from $189 per day and $68,985
annually in 2007 (MetLife Mature Market Institute Survey of Nursing
Home & Assisted Living Costs 10/2008)
Assisted Living Facilities:
Assisted living facilities reported charging an average fee of $3,031
per month, or $36,372 per year. (MetLife Mature Market Institute
Survey of Nursing Home & Assisted Living Costs 10/2008)
Home Care Costs: National
Average hourly rate for Home Health Care is $20, homemakers/companions
is $18, and adult day centers daily rate is $64. (MetLife Mature
Market Institute Survey of Adult Day Services & Home Care Costs
- Standard Rates / Married / Both Applying
- $150.00 DBA ($219,000 Pool of Money)
- 4 Year Benefit
- 90/100 Elimination Period
- 5% Inflation or Consumer Price Index (Inflation)
Disclaimer: Insurance products are
offered through insurance companies with which we have sales
arrangements. Not all products/features may be available in your
state. Check with your Accountant or Tax professional on the tax
issues associated with Long-Term Care insurance purchase and
benefits. Associates of Clifton Park are not a part of Raymond James
& Associates. Securities offered through Raymond James & Associates, Inc. Member FINRA/SIPC
Raymond James financial advisors may only conduct business with residents of states and/or jurisdictions for which
they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of
the investments and services mentioned are available in every state. Investors outside of the United States are subject to
securities and tax regulations within their applicable jurisdictions that are addressed on this site. Contact your local
Raymond James office for information and availability.