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According to the American Association for Long Term Care Insurance, there are eight million Americans who currently have long term care insurance policies. This is a small number as the expected population of elderly people who will require long term care in the next 20 years is 70 million. Only a small percentage of this 70 million can confidently say that they are aware of the cost of care in their area while those who have zero knowledge don’t know where or how to start planning their future health care and medical needs. People especially those nearing retirement have been advised to clinch a long term care insurance (LTCI) policy. Unfortunately, certain events in the past which resulted in the financial sufferings of present LTC insurance policyholders have instilled doubts in the minds of elderly folks when it comes to the overall capacity of an LTCI policy to spare them from huge LTC expenses. Towards the end of 2010, top LTC insurance providers applied for premium rate increase to state insurance regulators and the approval of their application eventually led to many LTC insurance policyholders’ financial pitfall. Since then many have opted to cancel their coverage while those who were very close to purchasing LTC insurance policies, turned away and looked for other alternatives. Beating the economic crisis by tightening one’s belt is hard enough so to be faced with an annual premium that is twice of what you have been forking out for the past 10 years is a bitter pill to swallow according to many average American families earning a modest income. How to Afford Long Term Care Insurance Policies Comprehensive LTC insurance policies are the best to have as these allow policyholders to choose where to receive care and these normally cover 100% of a policyholder’s LTC expenses. Unfortunately, choosing a comprehensive policy will dry up your resources quickly as it comes with a very high annual premium. Long term care specialists suggest that you consider the catastrophic long term care insurance instead, as this offers a relatively lower annual premium with its longer waiting period. Picking this over a comprehensive policy will guarantee you an annual premium that is 40% lower than a policy which stipulates a 30-day waiting period. Aside from the difference in waiting period, the catastrophic policy usually pays only a portion of LTC expenses so you definitely get to save on premiums. Some people who have been advised to get a catastrophic policy turned down the idea reasoning they do not have overflowing assets so they definitely can’t afford the remainder of their LTC bill. According to them, they would rather endure the high premiums of a comprehensive policy at least they know that their future LTC expenses will be covered 100% by their policy benefits. In response, financial advisers said frugality will enable one to pay a small amount of LTC expenses which he could possibly incur in an assisted living, from home care services or nursing care. They further added that one should include in his long term care plan a well maintained savings account and 401 account because long term care insurance policies are only going to cover custodial and medical care expenses. You must have a separate fund for your other daily expenses. Visit CompleteLongTermCare.com to find tons of articles about long term care plan and different types of long term care insurance policies available in your state.
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