The Costs of Long Term Care and How You can PayLTC) services and supports offer a wide range of options which aim at addressing the prolonged health care needs of everyone. However, along with these services and supports come high costs.
While there are public programs that help some people pay for such expenses, there are options that also help pay for long term care expenses and these include:
- Long-term care insurance
- Personal income and savings
- Life insurance
- Reverse mortgages
What are the Costs of Long Term Care?
In 2010, according to LongTermCare.gov, the average costs for long-term care US were:
- Semi-private room in a nursing home: $205 per day or $6,235 per month
- Private room in a nursing home: $229 per day or $6,965 per month
- Care in an assisted living facility (one-bedroom unit): $3,293 per month
- Home health aide: $21 per hour
- Homemaker services: $19 per hour
- Services in an adult day health care center: $67 per day
Costs can also be affected by certain factors, such as:
- Schedule of care
- Other expenses
- Variable rates
Overall, long term care costs are based on what services you will need.
Ways to Pay
There are several ways to pay for care. Since long term care can be expensive and not everyone can afford paying out-of-pocket, here are options to pay for care:
Long-term Care Insurance
Long-term care insurance (LTCI) is designed to pay for a policyholder's long-term care services and supports expenses.
It also pays for personal and custodial care in different settings such as your home, a community organization, or other facilities.
If you are unhealthy or already receiving long term care services or support, you may not be eligible for a long-term care insurance policy since most LTCI policies require medical underwriting.
There are different ways to pay long term care with life insurance:
- Combination (Life/Long-Term Care) Products
- Accelerated Death Benefits (ADBs)
- Life settlements
- Viatical settlements
A reverse mortgage is a special type of home equity loan. It pays you cash for the value of your home without selling it. You are not required to repay the loan as long as you continue to live in the home.
Some insurance companies accept annuity contract applications to help pay for long term care. Instead of paying your benefits, you will receive a series of regular payments until the annuity expires or the death of the person or persons in the contract, whichever comes first.
Some long-term care insurance policies will tell you the limits of how long or how much a policy will pay. Other policies pay your long-term care expenses for a fixed number of years, while other insurance companies offer policies that will pay as long as you live, regardless the costs.
However, insurance companies who offer policies with no limits are very few. Also remember before you buy a policy, insurance companies may raise the premium on your policy at any time.
By Aris Moreno