The Cost of Long-Term Health Care Insurance

By February 25, 2011Uncategorized

We talk a lot on this blog about long-term health care insurance, and how it is typically only available to those who are relatively young and healthy, and who can afford the premiums.  While this general information indicates that long-term health care insurance is certainly not for everybody, you may have questions as to precisely how much long-term health care insurance costs, or precisely how healthy insurers may require prospective purchasers of such insurance to be.  Having a good grasp of this information may be just what you need to help you determine whether you should begin ALTCS planning or not.

The American Association for Long-Term Care Insurance recently released a long-term care insurance price index that offers some insightful information into the actual costs of long-term care insurance.  For instance, the association’s study reveals that in 2011, a 55-year old married couple might pay about $2,350 per year for benefits that would grow to about $800,000 of coverage for the couple when they turn 80.  On the other hand, a 65-year old married couple might pay as much as $7,200 per year for benefits that would grow to only $527,000 of coverage for the couple when they turn 80.

As you can see, the age at which individuals purchase long-term care insurance has a very significant impact on their coverage.  Those who purchase the policies at a younger age tend to pay lower premiums, although they must of course pay these premiums for a longer period of time.  Regardless of the age at which individuals purchase this insurance, coverage does not come without a hefty price tag.

These figures confirm the notion that long-term health care insurance is tough to obtain unless you are relatively young and wealthy.  For the rest of those who need long-term health care, however, other options are available.  Specifically, for those who meet Medicaid qualifications, Arizona Medicaid (ALTCS) may provide a very workable solution.  To learn more about Arizona Medicaid eligibility requirements, you should speak with a qualified Elder law attorney. Keep in mind that JacksonWhite offers a free ALTCS prescreen done with one of our social workers via telephone. Contact us at 480-818-6912 for this complementary prescreen.