Can’t think of what to give your parent(s) for Mother’s Day and/or Father’s Day? How about buying a long-term care (LTC) insurance policy? That’s the suggestion of Terry Savage in her syndicated personal finance column on May 4.
She reported that “According to the U.S. Department of Health and Human Services, at least 70 percent of people over age 65 will require some long-term care services at some point in their lives.” She also noted that a recent study “shows that the median annual cost for a private room in a nursing facility in Chicago is $77,198.” Also: “A long-term care policy with the minimum recommended coverage ($200/day of coverage for three years, with simple inflation protection) would cost (about) $1,438 per year for a 50-year-old healthy woman, $2,253 a year if purchased at age 60, or $4,794 a year if purchased at age 70.” There may be a significant discount for couples. After age 70, applicants might not be accepted by some insurers.
“One way to guard against (unfair premium increases) is to buy only from the strongest companies with the most experience in LTC insurance,” Savage wrote. “Another way is to purchase a 10-pay policy, in which you pay premiums for 10 years, rather than the life of the policy, but it’s an expensive option.”
Unusual Gift for Mother’s/Father’s Day
Friday, June 5, 2009
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