According to the U.S. Department of Health and Human Services, about 9 million Americans now 65 or older will require long-term care. That number is expected to rise to 12 million by 2020. Currently, the average annual cost of nursing home care is nearly $75,000.
One way to protect your assets, minimize dependence on family members, and control whether you receive nursing or home care is to buy long-term care (LTC) insurance. When you shop for an LTC policy, here are some key steps to take:
* Research insurance companies to see whether they have a history of raising rates for LTC coverage.
* Verify that the company is reputable and licensed to sell insurance in your state.
* Make sure you understand what an LTC insurance policy covers and what it doesn’t.
* Find out if any health conditions that you have before you apply for the insurance coverage will be excluded from coverage.
* Ask whether rates go up sharply at age 60. If so, it may be a smart move to purchase your policy while you are in your 50s.