Like any other type of insurance, shopping for long term care insurance for elderly parents can be complicated, and it’s not without its pitfalls. Long term care costs can be quite expensive, and a long term care policy can help ensure that your parents don’t deplete their savings, 401k, or retirement fund. There are a few things to know about long term care insurance for elderly parents before you agree to a policy; read on to learn some of the details.
What Is Long Term Care Insurance for Elderly Parents?
The first question most caregivers ask about long term care insurance for elderly parents is, “what does long term care insurance cover?” There is quite a detailed explanation for this, but the bottom line is, long term care insurance (LTCI) covers more than traditional health insurance, and is designed as such to offset all of the health care costs associated with aging and the acquired disability that comes from aging, even if you aren’t technically disabled. If you’re thinking about buying long term care insurance for parents, it’s a financially sound and wise idea.
Why Is Long Term Insurance for Elderly Parents a Good Idea?
The main reason long term insurance for your elderly parents is a good idea is because of the skyrocketing amount of costs for long term care for elderly parents. Some long term care statistics in 2018 indicate that a semi-private room in a nursing home costs upward of nearly $7,000 per month—and you don’t even get complete privacy. Living in independent assisted living communities can also be quite expensive.
When it comes to care in the home, most home care aids charge at least $20 per hour, or more, depending on the level of care. So if you’re asking yourself the question, “can I buy long term care insurance for my parents,” you will pay much less out of pocket in the long run. Of course, there are alternatives to long term care insurance, and it’s wise to talk to a financial planner about some of these options. These might include life insurance living benefits (having a life insurance policy with what is known as accelerated death benefits), having life insurance with long term care, selling your life insurance policy, or tapping into an annuity. So, there’s no reason to feel cornered if you don’t want to purchase long term care insurance for your parents. There are always other avenues.
Shopping for Long Term Care Insurance for Elderly Parents
As with all types of insurance, there are ins and outs when it comes to shopping for long term care insurance for your parents. Cost of the policy will vary, and is dependent on things such as age at time of signing, gender, and current state of health (present health problems will cause the policy to be more expensive). When you’re looking at the fine print, keep in mind the following tips:
- Pay close attention to inflation protection: many policies go up every year with rising costs of inflation
- The certification period: the period you are allowed to receive long term care
- The daily benefit amount (DBA): the maximum amount per day that an insurance company is willing to pay.
There are also hidden benefits to long term care insurance for elderly parents an agent may not necessarily inform you of. Some long term care insurance for your parents allow in-home modifications, such as stair lifts or wheelchair ramps, depending upon your policy. If you believe these are things you need now, or may need in the future, choose a policy with these benefits.
To learn more about navigation policies for long term care insurance for elderly parents, or to hear more about mobility products that can help you live your best life, such as stair lifts or wheelchair ramps, contact Williams Lift Co. today.