Monday, August 28, 2006
A long-term care policy can be expensive. Before signing a bond first examine whether you can readily pay the premiums for long-term care, Medicare and Medicare supplement coverage. The annual premium for long-term care policies with good inflation protection is in the neighborhood of $2,000 for 65 year-olds. Premium are lower for those who are a better bet the carrier will not have to pay benefits, primarily those who are younger. At age 75, the premium will be two and a half times greater than if the policy had been purchased at age 65 and six times higher than if you bought it at age 55. A policy with a large daily benefit that lasts for several years is highly expensive.
Inflation protection can add 25 to 40 percent to the benefits and non forfeiture rights can add 10 to 100 percent to the bill. Policies that are guaranteed renewable only mean that the company guarantees that it will offer you the opportunity to renew the policy and continue the coverage; it does not mean that you are guaranteed regeneration at the same premium. Premiums will mount over time as companies begin to experience greater payouts in nursing home claims. Perform a personal financial audit and also make a decision of how much income you have to spend on a long-term care policy now. Project your future income, your living expenses, and how much you can pay.
posted by renaa
@ 8:58 PM
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