Cost of Long Term Care
The Cost of Long Term Care is staggering.
Today, the national average cost of a semiprivate room in a nursing home is $52,000 annually. Depending upon where you live and the type of
facility that you would prefer, costs can be
significantly higher. Home health care is expensive, too: the national average annual cost of home health care is well over $20,000 (that's $18/hour, five hours per day, five days a week for a home health aide). This figure is expected to climb to $68,000 by 2030. Are these costs that you could afford tomorrow?
And what if you need long term care in the future?
Nursing home costs have been going up about 5% a year. If that continues for another 30 years, the cost of nursing home care (for a semiprivate
room) in 2032 is expected to be $190,600 a year. As you plan for the future, you should consider whether this is an expense you will be able to afford.
The Cost of Long Term Care Insurance?
The cost of a long term care insurance policy primarily depends on your age. The older you are when you purchase a policy, the higher your
premium. For example, a typical premium for a 50-year-old person for a policy that covers a $100 daily benefit, four years of coverage and
includes a five percent compounded inflation protection, is about $850 annually. This same policy for a 65-year-old is about $1,800 annually; for a person aged 79, the cost is about $5,500 annually.
You can control premium costs by controlling the policy amount and
options you purchase. Higher daily benefits and optional features, such as inflation protection and non forfeiture benefits, increase your premium.
Studies of the cost of different long term care insurance policies show a threefold difference from a low-option policy to a high-option policy in every age category. Some companies may not write long term care
insurance policies for persons over 85.
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