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The costs for both types of long-term care plans will vary based upon several factors such as age and pre-existing health conditions.  In general, both plans require a nominal amount of financial commitment to protect and preserve an individual’s personal assets.  In most instances it takes a few months on claim to recover the cost of premiums that have been paid.  There is a Federal tax deduction scheduled by age and a State tax credit for both individual and employers who implement long-term care policies.

My father recently passed away after requiring 18 months of fulltime homecare.  My mother went on claim shortly after my dad.  Their cost just of care was just slightly under $100K in a year and a half.  My father had been independent but in a wheelchair for 46 years.  He was uninsurable, my mother had a cash plan in effect which paid her a monthly benefit of $3,900.  She received $70,200 during the period of my father’s need for care which was a welcomed financial relief for them.  She remains on claim and continues to receive her monthly benefits.

An import thought to remember is that one’s health can change at any given moment.  The time to purchase long-term care coverage is before this occurs.  The fact remains that after a change in health status coverage costs increase substantially or may even be unavailable.  By applying for coverage prior to being faced with an immediate and very real need you could possibly enjoy a lifetime of preferred rates.

 

Exploring Long-Term Care