Long-Term Care Policies Expensive, Complicated
By: CPR @ Jan 09, 2016
Long-term care insurance policies are meant to provide medical and health care to the elderly and individuals with debilitating conditions that prevent them from being able to care for themselves. Unfortunately, while about 70 percent of people over age 65 will require long-term care before they die, according to an article published in The New York Times, only about 20 percent of those people own a long-term care insurance policy.
The Costs of Healthcare
There is no question that healthcare is expensive. For those who require long-term care, the annual costs of a nursing home room alone is more than $80,000, making long-term care an unaffordable option for many. However, with nowhere else to turn, many people bankrupt themselves paying for healthcare in old age, or turn to government services for financial support. And the costs are increasing. For instance, the cost of a nursing home room cited above is a four percent increase from last year’s cost.
The Costs of Long-Term Care Policies
But it is not just healthcare that is unaffordable. Unfortunately, the long-term care policies meant to help pay for medical expenses are cost prohibitive. According to the same The New York Times’ article cited above, the costs of premiums have doubled from 2007 to 2014. Last year, a policy offering about $100 a day in benefits cost a hefty premium of approximately $5,000 – seven years ago, that cost, for a couple, would have been just under $2,000. The typical policy charges an annual premium of about $3,000. Because these costs are excessive for some, many people who have paid their premiums for years cease making payments, thereby forfeiting their rights to coverage. Even worse, unlike traditional health insurance coverage, pre-existing conditions can warrant a policy denial. Comparing policies and knowing which one is best is also difficult. For all of these reasons, many choose to forego the purchase of a long-term care policy.
How to Choose a Long-Term Care Policy
There are many considerations to make when choosing a long-term care policy, the complexities of which often dissuade people from making a purchase. Brenda Cude of the University of Georgia told reporters that finding a financial advisor or attorney who has your best interests in mind is a smart move when making a policy decision. An expert in the field can help you to weigh your options and provide you with an unbiased opinion about which policy is best.
When Long-term Care Is Necessary
Some people may require long-term care as a result of a tragic accident that has left them permanently unable to care for themselves. For these people, it may be possible to recover monies to pay for the long-term care by filing a claim or a lawsuit against the person or party whose negligent actions were the direct cause of injury. At the law firm of Cohen, Placitella & Roth, P.C., our experienced personal injury attorneys are ready to meet with you to discuss your rights and recovery options. To schedule a free case consultation today, call us now at (215) 567-3500.
