MEMPHIS: Policies are rising in price, while benefits are getting skimpier.
For aging baby boomers, planning for long-term care costs becomes more pressing every day. But the insurance that helps to cover these costs is surging in price, while the benefits are significantly decreasing.
As prices rise, health care experts are engaging in a fierce debate about whether the coverage is worth the years of premiums. Even when people do go into a rest home, those bills may not be as enormous as many people believe. Half of men and nearly 40 per cent of women who enter rest homes never have a stay exceeding three months, according to a recent study.
Here’s how to get the best deal for you.
8. If you want to remain at home and have family members who can provide some care, for example, you may want to buy a policy with a relatively low benefit level. With the national median rate for a home health aide at $26 an hour, the policy could provide enough to cover the cost of an aide for 2.5 hours a day to give relatives a break. A married couple age 60 and 65, for example, would together pay about $1,500 a year for a three-year policy that provides a $1,500 monthly benefit with 3% compound inflation protection, Thau says. The $1,500 monthly benefit would cover 75 hours of home care a month.
