Long-term care insurance is often costly, and many people wait too long to get it, in spite of being a solution for the many retirees who have false ideas about how much care they will need and how they will pay for it, writes USA Today in an article this week.
The article explores the costs and benefits of long-term care versus the expense of paying for the alternatives—from assisted living to nursing home care, at $36,000 to $85,000 per year, respectively.
Despite not wanting to be a burden later in life, most people don’t get long term care, either because they don’t think they need it, they believe the government will pay for their care, or because of the cost, USA Today writes, citing an average annual cost of $1,985 for a 55-year-old man to hold a policy.
The costs can vary widely, however, the article notes, depending on factors such as inflation riders, deductibles, daily benefits and maximum benefits—different policies offer very different costs and benefits depending on the insurer.
In addition, those costs are rising, USA Today notes, with the typical policy having risen in cost by 15% in the past two years, according to a professor in the Retirement Income Program at The American College.
Written by Elizabeth Ecker