Should You Avoid Long Term Care Insurance in New York?

Long term care insurance is undeniably an important investment as it is the only product in the market which offers individuals access to high quality care and asset protection.  With premiums of New York long term care insurance (LTCI) policies increasing rapidly, though, one cannot be blamed for having second thoughts before buying. 

In the past, individuals who shop for long term care quote and buy LTCI policies at a young age are applaudable as they manage to save a chunk of money on their premium.  Young buyers of LTCI policies are usually blessed with annual premiums that range from $450 to $999 but nowadays a 54-year-old buyer is forced to pay close to $2,000 for his coverage.

Reports have it that insurance companies had to increase the LTCI premium of existing policyholders to ensure that they remain in business.  Most of these firms have miscalculated the amount of claims that they will receive, while others have deliberately offered policies at a very low premium rate.  In other words, these insurance companies are not earning as the premiums that are paid to them only go to the benefits. 

There have been big insurance firms that raised the premium rates of their existing policyholders up to 10% while others went as high as 17%.  If one is not financially sound it would be impossible for him to maintain the premium of his LTCI coverage especially if his insurer keeps increasing the rates.

If you feel suspicious about the premium hike which your insurer has imposed on your coverage, contact New York’s insurance department as every insurance firm should obtain approval for premium increases before it can implement new rates.

New York Long Term Care Insurance

Even if  the annual premium rates of most LTCI policies in New York have exceeded $1,500 those in the know will tell you that this amount is still reasonable as compared to the five figures that you have to fork out once you actually begin to receive care. 

New York’s cost of care is among the highest in the whole world.  Oftentimes, a spectator would look at the numbers and wonder how the residents still manage to breathe. 

Residents of a New York nursing home are paying $324 annually, on average, for a private room while those who are staying in semi-private rooms are forking out $309 daily.  New York happens to have a roster of nursing homes that provide topnotch care.  To find out what these are you can get in touch with its local Area Agencies on Aging. 

If you need additional information about New York’s  best nursing homes the New York State Office of Long Term Care Ombudsman also serves as a reliable source.  This government agency oversees the health and safety of elderly people in nursing homes.  Since it religiously inspects all operating nursing homes in New York it has a complete list of legit nursing facilities and the ranking of each. 

Aside from nursing homes, New York also boasts reliable home health care agencies and community-based LTC facilities.  However, taking into account the high price tags of these LTC facilities you seriously need to consider a New York long term care insurance policy. 

Don’t let hearsays affect your future, speak to a licensed LTCI agent personally. 

Can you Cut the Cost of your New York Long Term Care Premiums?

Purchasing long term care insurance in New York can cost a fortune. Not a big deal for some but what about those who weren’t born with a silver spoon in their mouth? The long term care rates in this state are very alarming because with the way it is increasing right now, there is a great chance that it will increase as much as 50%.

The increase in rates is constant and insurance companies can’t do anything about this, so the one who needs to make adjustments are the people who want to get coverage. The government recognized this very well and that’s why they have implemented programs such as CLASS Act. This was supposed to encourage people to purchase ltc policy and free Medicaid from paying for long term care costs of their members but since it was cancelled, then anyone interested have to rely on their other options.

Age is one of the factors insurance companies consider in determining your premiums. Applying for long term care insurance at a younger age will reward you with much lower premiums. Unlike those who thought of applying for one when they’re about to retire, they will definitely get high premiums.

Health is another important factor companies consider. You need to answer the questions honestly, if you have family history of a certain type of disease or you have high risk factors. These will be the basis of your premiums, whether you’re eligible for lower or much higher rates.

Cities in New York offer different rates as well. Residents of Manhattan have to pay $438 monthly to nursing homes while those living in Queens will only cost them $331 in one month. Your exact location matters too in determining your long term care expenses.

If you want to avoid high New York long term care costs, it’s advisable to shop for long term care quote early and to arm yourself with all the helpful information that can help you save money.  

Who Considers Purchasing Long Term Care Insurance?

Most Americans think that Medicaid can cover all their long term care needs in the latter years of their lives. If you are one of them, better start long term care planning now because it has limitations. Chances are, you’ll end up exhausting your savings and assets or you’ll become a financial burden to your families. Do you want to end up in either of the mentioned situations?

If you want to face tomorrow with a full coverage of extended care you might need, then it’s best to consider requesting for long term care quote as early as now. If you still don’t believe it, I hope this can help change your mind. Statistics would show that out of then individuals only one will not require long term care services. That only shows that everyone has a high percentage of needing long term care in the future.

The cost of nursing homes, assisted living facilities and hiring caregivers will cost you a fortune without a policy today, so what more if 5 or 10 years will pass? The cost will surely double or even triple, so it’s best to be prepared by having a long term care coverage.

The age bracket of people who are highly encouraged to purchase ltc policy are from 50 years old and above. But since more people are becoming more at a high risk for chronic illnesses and getting injured, even those who just turned 40 are encouraged to shop for long term care quote.

Most people shrug off the idea of purchasing one but have a policy early is actually beneficial. You don’t have to pay for high premiums and you are very eligible to get coverage. Putting this off is not worth the risk because you’ll be the one who’ll suffer and as well as your family.

Just because your healthy at this moment means that you’ll still be the same in the coming years. You need to understand that as people grow older they become more vulnerable to diseases. This means that everyone should consider long term care insurance and don’t ever rely on Medicaid alone.  

What is the Best Long Term Care Insurance?

After asking yourself when I should look for long term care quote, the next question you might have in mind is, what is the best kind of policy that will fit you. You have three choices, Reimbursement long term care insurance, Partnership long term care insurance and last but not the least is Indemnity long term care insurance. Among the three what’s the best? It’s hard to tell because you need to gauge this according to your needs, if the policy offers the right benefits and it’s perfect for your budget. It’s like the first policy works perfectly for a certain person and if another chooses this one and this person has a different set of needs then it might not work well with him.

To help you figure out what can be the best long term care insurance policy for you, below are your three options.

Reimbursement Long Term Care Insurance

This is the most common type of ltc insurance. The name says it all, all the payments you made to cover your long term care services will be given back to you for as long as the expenses doesn’t exceed your benefit amount be it every day, per week or on a monthly basis. What if your benefit amount is much bigger than your expenses, what happens to the extra money? The company will keep this and you can use this in the future.

Partnership Long Term Care Insurance

Most states in America offer this type of policy and with the looks of it it’s starting to gain more followers. This type of policy helps people to get into the Medicaid program even if they have assets that exceed the maximum limit or even if they have used all their benefits. Aside from this, policyholders can also take advantage of tax deductions, disregard of assets, reciprocity agreement and inflation protection.

Indemnity Long Term Care Insurance

This is more expensive than Reimbursement long term care insurance. However, this more manageable and can be controlled easily since you’ll get paid for the number of days you have received long term care from any facility and you’ll be given a check for that. The insurer will just indicate the amount of your daily benefit. So if there is extra money left, you can keep it and use it in the future. This is highly recommended for people below 60 since this policy offers maximum benefits. Even if this is a bit costly, it’s still a great investment because you’ll get the worth of every penny you’ve spent in this policy.

Now you know your options, I hope these things can help you decide shape up your future. Choose wisely, shop for long term care quote first and make sure you’ll choose something that can be of great service to you in the future.