Inflation essentially involves the increased price of goods and services over time. There are numerous factors that go into inflation, causing it, slowing it down, accelerating it, and so forth, but that’s not the purview of this blog. What we want to talk about is how inflation can impact long-term care costs in the future.
Have you ever stopped to consider how much long-term care costs right now? If not, don’t feel bad; most people haven’t. In fact, if you were to tell somebody that the average cost of a one-year stay in a nursing home in Alaska is over $300,000, most people would be completely surprised. They may not even believe it.
In fact, their jaws could hit the floor. While that’s an extreme example, the average cost of nursing home care in the United States is fast approaching $85,000. Assisted living is not far behind. Home care is the most affordable long-term care option at the moment, but even that, for full-time, 40 hour a week care, it averages about $45,000 annually.
This is why long-term care insurance is so essential.
Because of the rising cost of long-term care in this country, a person could quickly see their savings, retirement investments, and even their asset being completely obliterated within a few short years. An average long-term care insurance policy will pay out for three years of long-term care, but that’s not a hard and fast rule. It’s important to understand the policy you purchase to ensure you’re protected the way you expect.
Also, it’s important to realize not all long-term care insurance policies are going to take inflation into account. You might have a policy that covers $150,000 of long-term care for a period of three years, which may be perfect for home care, only to realize 15 years from now it costs $225,000. Suddenly, you would be on the hook for $75,000 of that care because of inflation.
Find out what this policy will cover.
Not all long-term care insurance policies are the same, just as not all automobile insurance or homeowner’s insurance policies are exactly the same. You need to understand what your requirements are, what your needs might be, and how you want to protect your family and savings in the future. Whatever policy you choose, just make sure it’s going to take into account inflationary increases in the cost of long-term care.
It’s best to sit down with an experienced broker or advisor from a long-term care insurance services company to go over all of your options before choosing a long-term care insurance policy. Give us a call today.
If you or a loved-one are considering Long-Term Care Insurance Companies in San Marcos CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
- Get A Long-Term Care Insurance Quote for the Things You Don’t Think About - September 20, 2021
- What Long-Term Care Insurance Premiums Will Buy You if You Need Care - September 13, 2021
- Now Is the Time to Get a Long-Term Care Insurance Quote - September 7, 2021