When it comes to your health, you should take every care and precaution. Fortunately, most Americans are living longer and healthier lives thanks to advances in medicine and preventive care. While that is welcome news, it also means there is an increased risk of living with a chronic health condition that will require extended care. With the average private-pay nursing home stay costing more than $80,000, a long-term care insurance policy allows you to offset the high cost of extended care due to accidents, illnesses or advanced age while protecting your personal assets.
Long-term care insurance protects individuals against incurring large out-of-pocket expenses should they need help performing the activities of daily living due to an accident, illness or injury. With affordable premiums, individual policies are ideal for those who want an increased level of financial protection.
According to the Health Insurance Association of America, the average age at which people purchase long-term care insurance is 62. However, purchasing a policy at a younger age typically means premiums are much more affordable. This often evens out the cost of coverage over the life of the policy, as compared to a policy taken out over the age of 65. While you may pay for a longer period of time, taking out a policy around age 50 allows you to enjoy peace of mind from knowing that you are covered.
A long-term care insurance policy covers some or all of the following types of services:
- Nursing home coverage
- Assisted living facility coverage
- Adult day care center coverage
- Home health care coverage
- Personal care coverage