financial
disaster. Now an alternative is developing-nursing
home, or long term care, insurance to cover at least
part of the costs. Policies vary and aren't yet available
everywhere, but you would do well to explore the options
now.
TYPICAL BENEFITS range from $30 to $100 a day for
up to four years, with perhaps another two years’
home health care. (Today’s average nursing home
fees nationwide run about $68.00 a day). Annual premiums
cost from $200 to $2,500 or more, depending on age
and coverage.
Shopping
tips
Check out the company.
Find out
through your state insurance commissioner what companies
sell where you live, look up their ratings in Best's
Insurance Reports at your library, then compare policy
benefits.
-
Buy sooner, not later. Most policies
are available to people in their early 50s through
early 80s. The earlier you sign up, the less your
premium. Aetna, for example, charges a 55-year-old
$210 a year for $50 daily coverage for four years,
plus two years in-home care. Costs for an 80-year-old
new-policy buyer: $1,625.
Younger people also are less likely to have developed
non-qualifying diseases, such as Parkinsonism. (About
one in 10 applicants for these policies are turned
down.)
- Examine guarantees.
Once you qualify, protection generally is guaranteed
renewable for life. Look for a policy that can be
canceled only for nonpayment of premiums, not for
reasons of age, health, or number of claims. Note:
Premiums may be raised for an entire class of people,
as insurers learn more about the real costs of this
relatively new product.
. Compare daily benefits.
Nursing facilities charge from $30 to $130-plus a
day. At least one company, AMEX Life Assurance Co.,
raises coverage by 5 percent a year for 10 years,
but premiums are a bit higher going in. Tip: Aim for
the highest affordable coverage when you buy, especially
if you're younger.
. Weigh a facility's
qualifications. Make sure that whatever
homes you're considering would qualify under the policy.
Generally, Medicare-approved establishments are fine,
for example.
-Check length of coverage.
The average nursing home stay is two and one-half
years; shoot for coverage of at least three to four
years.
. Compare deductible&.
You could be responsible for paying anywhere from
the first 20 to 100 days; the longer the period, the
lower the premium, as a rule. There's usually a waiting
period for preexisting health conditions, ranging
from 30 days to two years. Some policies require three
days' hospitalization before entering a home; others
waive this requirement but charge higher premiums.
.
Tip: Look for the largest deductible you feel you
can handle out of pocket and use the difference in
premium to purchase a longer benefit period.
