The cost of coverage for nursing home fees is up by double digits this year.
The price associated with covering oneself against the cost of a nursing home or other similar forms of assistance service is skyrocketing, as long term care insurance premiums rise by 6 to 17 percent this year.
The amount of the increase depends on the type of coverage that is purchased.
This data is from the American Association for Long Term Care Insurance. Many insurers in this sector are finding that they are losing money and are therefore leaving the business. This has sent premiums sky high and is causing people to second guess their need for such an expensive form of protection.
However, the necessity for long term care insurance shouldn’t be taken lightly.
Though the cost may be high – often between $1,500 to $2,000 per year, depending on several factors – it is this coverage that is designed to protect the nest egg that customers have been putting away for their retirement.
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Therefore, the key to understanding whether or not long term care insurance will be required is to determine the odds of actually having to need it one day. According to the Department of Health and Human Services, out of every 10 people, 7 will reach the point that they need assistance with daily living when they get older. This includes basic tasks such as climbing stairs, getting out of bed, or preparing their own meals. The average length of time that this assistance is required is three years.
Often, it is not the individuals who end up having to cover this cost. Instead, their families provide them with the assistance they need. Grandparents move back in with their children and grandchildren.
However, when additional help is needed, or when there isn’t anyone for the individual to move in with, long term care insurance is what can pay the bill for the assistance that is required. Even if the individual continues to live at home, a home health aide that visits for 18 hours per week would have cost $19,565 per year in 2010. The government’s statistics show that 13 percent of the population will end up in an assisted living facility, where the additional help is a part of the apartment rental. One out of every three people will live in a nursing home at some point, where it costs $75,000 per year.