While many seniors can live independently throughout most of life, many people need assistance beyond what family members can offer. One study demonstrates that most Americans 65 or older will need care at some point.
Unfortunately, this care can be expensive. One of the difficult facts of life is that health insurance and Medicare do not cover many types of elder care. Long-term care insurance often takes care of the gap that remains. Of course, long-term care insurance is not the best option for everybody.
Your approach to long-term care insurance can make a significant difference in the assistance you receive. Keeping this in mind, you might find that hybrid life insurance is the best possible solution.
Who Is Hybrid Life Insurance For?
Many people pay for elder care through Medicare, Medicaid, or other state assistance. A significant portion of seniors and their families pay out of pocket, not using long-term care insurance at all. The problem is that many options, like Medicare, do not cover the full spectrum of seniors' needs, like home health aides, homemaker services, and delivered meals.
That's where hybrid life insurance comes in.
Hybrid life insurance policies offer coverage for long-term care, but this fund becomes a death benefit if you do not need the care it offers. Your policy covers your elder care with the potential to leave something behind for your loved ones. Your policy has a payout regardless of how you use it.
When Does Hybrid Life Insurance Care Kick In?
Typically, the long-term care benefits kick in if you become sick or injured and are unable to perform many of the routine activities you used to. For example, you may no longer be able to bathe or feed yourself. Each policy has its own requirements for how long you must be injured or ill before the policy kicks in.
Most people do not anticipate they will need long-term care until they are in their 70s or 80s, but even individuals in their 50s and 60s may experience the symptoms of Alzheimer's disease or suffer debilitating injuries.
What Are the Benefits of Hybrid Life Insurance for Elder Care?
Here are some of the benefits of hybrid life insurance.
Avoid Price Hikes: Hybrid life insurance is protected against rate increases. You will not be surprised by increasing insurance costs, especially because people who purchase hybrid life insurance policies often pay for them up front rather than on a monthly or annual basis.
Meet Your Needs: One of the biggest reasons why people fear buying a long-term health insurance policy is that they feel the money is wasted if they never need elder care. Hybrid insurance means that if you never need care, you have a death benefit available for your loved ones. You can ensure they are taken care of even when you are gone.
Ease Financial Strain: Next, you can consider the financial difficulties of paying for long-term care. The costs of elder care differ widely based on individual needs and location. The specific type of care you need may range from non-medical home assistance to nursing home assistance.
For example, the daily average rate for nursing home care is about $214 for a semi-private room. For a private room, the cost of care increases to $239 per day. Over the course of a month, you might find yourself paying nearly $6,500. In one year that's more than $77,000. Hybrid life insurance can ease the burden you feel when you see the monthly bills rolling in.
Even a home health aide may cost an average of $19 an hour according to 2007 figures. If you skip a residential home, you may still pay an extraordinary amount.
Is Hybrid Life Insurance Right for You?
Few people are excited about the prospect of receiving long-term care in their golden years, but the truth is that anybody may one day require this assistance. The younger and healthier you are when you buy insurance, the less money you may spend on your insurance policy. Taking action now may be the best way to protect yourself.
Call United Counties Insurance Group today to learn more about your insurance options. We understand the difficulties ahead.
