Absolute Retirement Solutions

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How Much Does Long Term Care Insurance Cost?

It’s a tough idea to think about, but it’s likely that you’ll need some assistance with your daily living activities in your later years. The cost of care, whether it be in-home, assisted living, or nursing home care, continues to increase and many retirees aren’t sure how they would be able to afford it if they needed care for a substantial amount of time. People who are very well-off can cover their own long term care costs without it depleting their estate too much, but for many Americans, an extended nursing home stay would be detrimental to their savings.

Long term care (LTC) coverage under Medicare is extremely limited and although Medicaid can cover some LTC costs, you have to fall under a certain low-income level in order to qualify. So, how will you pay for long term care?

For many, long term care insurance may be an affordable way to mitigate the risk. LTC policies cover a host of services that aren’t covered by traditional health insurance, including assistance with daily activities like getting dressed, bathing, moving around the house, and more. If you are thinking ahead and considering a policy, you are likely wondering, “how much does long term care insurance cost?” The answer depends on a number of factors that are specific to you.

  • Age (policies are more expensive to purchase the older you get)
  • Health (policies are more expensive to purchase when you have documented health issues or are at risk for complications)
  • Gender (women typically pay more than men due to higher life expectancy and greater probability of making an LTC claim)
  • Marital Status (premiums are typically lower for married people)
  • Coverage Amount + Features (you can pay more for higher limits on benefits, protection against inflation, less restrictions on the types of care covered, etc.)
  • Insurance Company (rates vary substantially between different providers- also, the best rate for a 55 year old single may be offered by a different company than the best rate for a 65 year old single)

If you are concerned about the cost of a long term care insurance policy, it’s also important to know that there may be tax advantages if you itemize deductions. Federal tax code, as well as some state tax codes, count long term care insurance premiums as medical expenses, which are deductible up to a certain amount depending on your age. As you get older, the maximum amount you can deduct increases.

Long term care insurance can be expensive, and it’s not the right choice for everyone. For some, however, it is the most affordable way to prevent draining their estates to cover the costs of long term care. Absolute Retirement Solutions works with multiple LTC insurance providers to provide our customers with a wide selection of policy options at competitive rates. We can assess your unique needs and goals to determine if this type of insurance may be right for you and then match you with a policy that fits your situation. Contact us today to speak with a knowledgeable agent and request a quote!