When you consider that one of two women and one of three men over the age of 65 will need nursing home care at some point in their lives you can see how home care insurance can be vital to the financial peace of mind of the elderly and their families. More will require at home care than these numbers reflect.
The elderly are not the only segment of the population that requires long term care in the home. 40% of those using long-term care in the United States are between the ages of 18 and 64. The costs of home care can be disastrous to those without a homecare insurance plan in place.
According to AARP (American Association of Retired Persons) the national average daily cost for private nursing home care is $150. This doesn’t include the costs for therapy, rehabilitation or medications. The care also varies from state to state and you can check your home care costs for your state on their website.
Very few of us plan on being taken care of in our own homes or through home care services and nursing homes. Because home care and insurance for this care is not planned on it usually is left to be decided on after a traumatic accident or diagnosis of a severe health issue such as dementia, Parkinson’s disease or other illness or accident that results in the loss of the ability to care for oneself.Many times the cost for home health care or for nursing homes can exceed a person’s yearly income. If insurance for home care isn’t provided for, family members are left to carry the brunt of the costs themselves, often devastating their finances. Medicaid and Medicare can pay for some homecare costs or nursing home costs, but contrary to popular belief these public health plans do not pay for long-term care.
According to ElderCare Online home health care insurance or extended care insurance has four key areas to consider and compare:
- The benefit period, which is the length of time that the insurer will pay for care after a claim has been filed. This coverage period can be anywhere from one year to a lifetime.
- The daily benefit, which is the maximum dollar amount or percentage amount the insurer will pay for care, each day, during the coverage period. These insurance benefits can range anywhere from $30 to hundreds of dollars a day.
- The elimination period or deductible, which is the length of time and the amount of money that must be paid out-of-pocket before the insurer starts to pay. This could be a day to a year.
- The level of inflation protection, which is the amount your benefits will increase over time to keep up with inflation. A hundred dollars today might be adequate but in 10 years time it may be too little.
As with any insurance purchase, shop around and compare the best rates. Find out if the insurance company has financial strength to meet your needs when you file claims. You can find out about insurance ratings here.