Long-Term Care Insurance: Is It Worth the Cost

Though many Americans over 50 are concerned with the rising costs of health care, there are ways that families can decrease the burden of this anxiety. Investing in senior care insurance affords peace of mind and allows for better long-term care planning.

Here, we'll discuss:

• How much long-term care costs without insurance
• What long-term care insurance is
• Whether it's worth the money
• How to choose the right plan for your needs

Read on for a comprehensive insurance benefits comparison and run-down.

The Cost of Long-Term Care

According to Genworth in 2023, the monthly cost of assisted living in Michigan is about $5,050.

While this may sound high, you need to compare it to alternatives. Genworth data shows that the cost of a home health aide is about $6,292 in Michigan.

That's already more than a room in an assisted living community... and it doesn't even come with awesome amenities and services.

The price of an assisted living community makes sense when you consider the care services that the cost encompasses. This money isn't just rent for a resort-style apartment in a well-appointed community. It also pays for:

• Daily meals
• Accessibility features in the community
• All necessary personal care tasks
• Daily living activities and events
• Social opportunities for seniors
• Communication between the community care experts and your family members

If you kept your senior loved one at home, you would need to pay rent or a mortgage. You would also need to purchase meals and spend money on entertainment. This would add to the cost of home health care and skyrocket costs into an unaffordable territory.

What Is Long-Term Care Insurance?

Despite the good value of a quality assisted living community, some families still struggle to afford them. That's valid, but luckily there are ways to lessen the burden of assisted living expenses.

Long-term care (LTC) insurance is one of the best ways to afford a senior community.

Much like other types of insurance, LTC policies reimburse policyholders a set amount for care. After you reach this limit, you will pay out of pocket. However, LTC insurance lessens the amount of money that you'll need to scrape together.

The sum LTC providers give you will depend on the monthly premium that you pay.

The cost of a policy will change based on when you purchase it.

If your loved one buys LTC insurance right before entering a senior community, it will cost more than if they purchase it five years in advance. If they purchased the policy 10 years ago, the cost would be even lower!

Your policy's price will also depend on:

• The maximum amount the insurance company will pay for care per day
• How many days out of each month the policy will pay
• Additional benefits that you opt into

The more days and additional benefits, the higher the premium will be.

Is This Insurance Worth It?

Yes, LTC insurance is a good choice for many Michigan seniors. Families choosing these coverage plans will avoid a lot of future stress. It lessens future financial burdens and provides peace of mind.

LTC insurance offers the financial security that aging adults need to:

• Stay in control of their finances
• Feel financially secure
• Maintain their standard of living post-retirement
• Protects savings since they won't have to use all their money on care
• Prevents seniors from having to sell their things to secure care

It also offers:

• Emotional relief for the loved ones of the seniors benefitting from the LTC insurance policy
• Tax benefits because of deductible premiums
• Inflation protection
• More options for assisted living communities
• Increased flexibility for care plans
• Multiple LTC policy options, including hybrid policies

Investing in affordable care insurance helps you save money overall. It also decreases stress about how to fund care when it's eventually needed.

If your loved one falls suddenly and needs LTC immediately, the insurance policy will kick in. You won't need to worry about unforeseen financial catastrophes because of unexpected health emergencies arising.

Coverage and Benefits Analysis: Choosing an Insurance Plan

Once you decide to invest in long-term care insurance, it's time to compare companies and plans to find the right fit for your specific needs.

When choosing an insurance provider:

• Make sure that the company is licensed in Michigan
• Evaluate how easy it is to get in touch with their representatives
• Know that the insurance company might raise the premium over time
• Prepare for this by asking for information on their premium rate history
• Research their reputation online and read reviews

If you already know what Michigan senior care community will be best for your loved one, make sure that they work with the insurance provider you choose. You can learn this by asking the provider or the community experts.

At this point, it's time to do an insurance benefits comparison.

Look at:

• How long the waiting period is before coverage begins
• The coverage type (it's important that they offer funds for community-based care rather than just unnecessarily expensive home care)
• The benefit amount they're willing to pay each day
• How high your premium will be
• Whether you'll actually be saving money on care based on those premium rates and payout rates
• The duration of the coverage
• How frequently you'll need to renew the policy
• Whether or not the policy has inflation protection
• What add-ons you can use to customize your coverage

Having all this information written in one place lets you make an informed and confident decision about your LTC insurance policy.

Finance Senior Living in Escanaba, MI

While long-term care insurance may initially sound difficult to understand, it's a fairly straightforward concept. Do your research and gain a comprehensive understanding of it to save money on the cost of long-term care for seniors.

Lakehouse Escanaba is committed to helping Michigan families thrive with high-quality care for aging loved ones. Our assisted living community offers support and activities for seniors who require compassionate care and assistance.

We take several types of long-term care insurance, so contact us to learn more and schedule a tour of our community.