You can likely guess that long term care insurance costs might be a valid concern while planning for the future. After all, in California, the average cost of a shared room in a nursing home is about $300 and for a private room, the cost is about $350 per day. So, how much is the insurance that pays for nursing home care?
We’ll talk about the cost of long term care insurance, but first we need to be on the same page about what it costs if you or a loved one needs long term care.
Long Term Care Costs
If you haven’t looked at the numbers yet, this is going to be a shocker. These numbers are for the state of California.
- Pulling in the $300/$350 per day, that’s $109,500 to $127,750 a year, on average.
- High cost of living areas like San Francisco, San Diego, and Los Angeles demand much higher payments – even up to $497 per day, which is $181,405 per year.
- The average stay in a nursing home is 2.5 years. That’s $273,750, on average, for a shared room.
- If a couple needs care, the costs are doubled. That’s $547,500.
- Shockingly, these fees are for basic care; they don’t include personal products like Depends, sitters and attendants, or getting your hair or nails done.
- And, lastly, an important question: With health care costs skyrocketing at more than 4% annually, how much will that nursing home cost by the time you need it? Yikes!
Long Term Care Insurance Costs
This is actually good news:
- All the premiums, you pay over your entire lifetime, will likely be less than the cost of one year in a nursing home.
- You can pick a long term insurance policy that fits your budget. If premiums are going to take food off your table, you shouldn’t buy it, but, otherwise, there are a myriad of ways to make it work.
- New products have been developed which feature long-term care riders and chronic illness riders as a part of a life insurance policy or an annuity.
- Long term care annuities allow you to get ALL your money back if you don’t use it to pay for LTC.
- Costs depend on how much protection you buy, the options you select, your age at purchase, and your health when you apply for coverage.
- Costs vary widely, depending on your coverage selections as well as your age and health. For example, long term care insurance costs may range from a $1,500 to $7,000+, depending on your individual situation and goals.
We know the numbers can be overwhelming and you’re not sure what numbers will end up applying to you. But, we can’t provide specific information for everyone on a website, so we offer a free information conversation.
You are entitled to a free, no-obligation analysis of your individual situation. Contact us to find out your long term care insurance cost and plan options. Be sure to ask about long term care annuities as well. Call now to get the answers you need so you can stop worrying.