The cost of long term care insurance is quite high from the starting itself. It is also rising quite steadily & steeply. In the year of 2012-2014, $88,000 to $94,000 is the average cost for nursing home cost and nearly $20,000 to $19,000 for a three times visit in health aid service in a week.
At a certain point of time, near about after 50-65 years of age, we will all become in need for long term care facilities. It maybe for day to day household chores, nursing & medicare services or community services. According to different results of various surveys nearly 70% of the people are in need for the long term care after an average age of 65 years.
WHY RISE IN PRICE?
Medicare and most other health insurance does not or barely covers long term care costs & benefits. Resulting a rise in pressure upon the pockets of the consumer group.
There are plenty of private long term care insurance policies and care available but their prices are rising at an alarming rate. Nearly 6-16% of price hike is there over the policies in the past year.
There has been a hike in the amount or the price of premium in recent times due to various economic reasons. The two main major reason of them are economic depression and recession. The crash of various stock exchange also affected the insurance policy.
According to Jesse Slome, executive director of the AMERICAN ASSOCIATION FOR LONG TERM CARE INSURANCE,”the cost of long term care insurance has risen because claims are increasing and interest rates are at historic low. Most affected policies are the policies which contains the five percent inflation growth option; but with inflation so low, there are other options available where costs are surprisingly affordable”.
However, it is universally acclaimed that long term care facility and insurance are generally growing in nature and the time is not far when in near future the cost will drop to an economically feasible level. Long term care insurance has slowly become an integral part of self dependant retirement policy for a prolonged period with various benefits included.