Long-term care insurance is a benefit that many people overlook as a serious need, as it does not typically provide an immediate benefit for years to come. The fact of the matter is that long-term care insurance is one of the benefits you will be thankful to have when you need it, as it provides a critical safety-net for many people.
The benefits of long-term care can be exactly what someone needs to get the care they need in their golden years, while also avoiding the crippling financial cost of covering the bill of the care.
The effectiveness of long-term care
The average annual premium for long-term care insurance is approximately $2,727, or about $227 a month. Insurance providers determine the actual value of these premiums based on unique client factors like:
- Age
- Health history
- Gender
- Size of the policy
Despite these costs, the payout more than makes up for the premium. In 2019, long-term care policies paid out a substantial amount of money to policyholders. 310,00 people collected $11 billion in claim benefits or an average of more than $35,000 person. The value of these benefits has also been increasing since 2015, meaning now is the best time to purchase this benefit for a rainy day.
You can avoid major records in the future
The more prepared someone is for their golden years, the fewer opportunities for regret they will encounter. Long-term care insurance is a useful tool for protecting yourself when you need critical care.