Back in early January, we discussed the important topic of long-term care insurance with residents across the state of Florida. As some of our more frequent Melbourne readers may remember, our January 7 post raised an important question: is long-term insurance really worth the added cost?
The answer we came up with was "no" because in many cases, Medicaid oftentimes covers the typical stay in a nursing home, making long-term care insurance an added cost most people don't need. We realize though that this won't be the case for all people in Florida. Some of our readers may need to plan for long-term care insurance, begging the question: are people saving enough to cover its cost?
To answer this question, we need only look to a report issued by the American Association for Long-Term Care Insurance, which looked at insurance rates from 10 insurers to figure out the average rate in the nation. What they discovered is that rates are actually up from last year by about nine percent. Although couples might save some money on their policy, singles may pay more out of pocket -- depending on their policy of course -- than they would have in previous years.
So are you saving enough? The report indicates that even if you're a healthy 55-year-old man, you may end up paying more than $2,000 a year for insurance in 2015. For women, that amount is nearly $2,400 a year.
Even though policy rates for long-term care insurance can range from year to year, it's often considered a good idea to plan on spending more than you expect to in order to account for this fluctuation. Along with the information we provided our readers with in our January post, rising insurance rates are also something our readers will want to keep in mind, especially because it can affect an estate plan down the road.