Factors that Determine Long Term Care Insurance Rates
Rates vary by state. On average and annual nationwide LTC costs, home health care is $45,760 (homemaker services) and $46,332 (health aides); assisted living facility is $43,539; adult day health care is $17,680; nursing home care is $82,125 (semi-private rooms) and $92,378 (private rooms).
Type of Policy
There are different types of LTC policies to choose from to fit an individual’s budget. The three types are indemnity, reimbursement, and partnership. More information can be found here.
Long term care insurance policies come with elimination periods. This is a period before actual benefits are given out to policyholders – shorter periods mean more expensive premiums.
On the other hand, a benefit period is the defined time when benefits are now paid by the policy. These periods usually come in two, three, four, or five-year time spans. Longer benefit periods mean higher premium costs.
Daily benefits designate a certain amount of funds that a policy will allow to be used on a typical day.
It is an insurance rider that protects the policy’s funds from inflation. This type of protection typically assures policyholders that their daily benefits are increased depending on inflation – as such, the fee of this rider is usually on top of how much a policy’s daily benefit rate is.
Age & Health
The age and health during the time an individual applies for a plan play a big role. The older a person is, the more expensive the LTCI will be. Also, health is a factor that can check if a person is qualified to for a policy or not.