While Medicare is typically available to everyone once they reach age 65, it does not pay for long-term care. That is, if someone needs help with daily living activities such as bathing or getting dressed, those costs generally are not covered.
Long-term care insurance can be an option for those who can afford it. As with many types of insurance, the younger the applicant is, the less expensive the policy typically is.
For instance, a 55-year-old man would pay an average annual premium of $1,870 while a 65-year-old pays $2,460, according to the American Association for Long-Term Care Insurance. Women pay more: $2,965 for age 55 and $4,270 for age 65. Married couples usually get a discount.
People also run the risk of not qualifying once they’re older. About 23 percent of long-term care insurance applicants in their 60s are rejected coverage due to health issues.
Another type of insurance that’s growing in popularity is a hybrid insurance policy that combines a traditional death benefit with a long-term care feature. In simple terms, you can use the money from the policy to pay for long-term care.
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