Affordable Long Term Care Insurance
Long term care insurance isnt cheap - affording this type of insurance can be a challenge, especially if you are elderly, in poor health or otherwise not in a position to prepay for coverage. It can also be confusing shopping around for this type of insurance and understanding exactly what is covered, and what the premium amounts are.
If you are purchasing long term care insurance, some things you should look for are the conditions covering home care and nursing home care, qualifying periods and the tax implications. Ideally, try to take out coverage from an insurance company that specializes exclusively in this type of insurance.
Obviously, the younger a person is when they take out long term care insurance, the more affordable it tends to be as the payments can be spread over a longer period of time. Many insurance companies also offer a 10 to 20% good health discount which is less likely to be applicable as you get older.
There are several other options available to help with funding. Often, a family will spread the cost out between several family members, thus keeping premium payments lower and affordable every family member has a fixed monthly or yearly payment. Some employers offer long term care insurance as part of their benefits package.
Assets can sometimes be sold to cover the costs of long term care insurance. These assets might include a second home, any rental properties or a small business. If you can afford to keep your investment intact, though it usually makes better financial sense to use the income from the asset to purchase long term care insurance.
There is also an option known as a reverse mortgage, which is used by older homeowners to obtain cash from the equity in their home. The money from the reverse mortgage, which is usually accessed through a line of credit, can enable many people to cover the otherwise prohibitive costs of long term care.
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