Long Term Care Costs and Premiums

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Long term care service is required when we are unable to perform basis chores and necessities of life without a helping hand like nursing, eating, bathing etc. Its hard to imagine that way, but it could happen to anyone at any point of time.
We are all more or less familiar with the Long Term Care Insurance, but there are plenty of doubts and questions always in our mind about its costs and premium.  Let us take a look about different costs and criteria of long term care insurance.

Let’s take a look at what factors influences and effects your premium payments-

  • Age – Lesser your age will be, more lowly will be the premiums.
  • Period of Elimination – the premiums will be much lower if the expenses incurred by you is for a long period before the company starts giving benefits to you.
  • Health Condition – The condition of your current health will be taken into consideration at the time of deciding your premium, suppose you are having a health problem then your premium charges will be high.
  • Expense and Time – More expense will be incurred if the benefits are high and have a long duration coverage.
  • Regions – The cost of premium also varies greatly from region to region, it changes depending upon it.
  • Options – Additional customization in the policy may also affect the premium cost of the insurance.

Therefore, we can see there are various factors of different types affecting the cost of the insurance and premium itself.

The Net Average Cost of Long Term Care is quite as follows:-

               FACILITY                            Annual Charges           Daily Charges

  • Semi Private Nursing Room          $82,8855                     $227
  • Living Facility (assisted)                $41,124                        $3,427(monthly)
  • Home Health Care                          $29,640                        $19 (hourly)
  • Adult day Care                                 $18,460                        $71

So, we can guess that LTC is not a cheap policy, it is expensive in some particular nature, but so is its coverage and benefits. Here is few more facts and figures which will give a more detailed and wide view of LTC costs:-

  • The long term care services & insurance have a growth of 6% from 2007.
  • It costs average $2207 per year/annually.
  • Daily benefit range is $150-$190.
  • It covers both home and facility
  • Covered 8 years of services excluding 20% of people who choose life time coverage.

Therefore we can say though it’s not a very economical insurance but a rather important and required one in nature. The cost of it may vary and get altered depending upon various factors and reasons, it averages near about same. Not being economical in nature does not reduce its value a single bit.