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Learning Center Articles
Retirement Home Insurance
Retirement home insurance is commonly referred to as long-term care insurance, or nursing home insurance. It is a type of insurance that you buy when retirement may still be 15 to 20 years off, or even when you are in your 70s. There are many factors to consider when thinking about retirement home insurance.
If you have the extra money and are still in your 40s or 50s, then you may not feel motivated to spend up to a couple thousand per year for a policy. As you get older, policies get exponentially more expensive. With policy premiums having such a great range, it is definitely a good idea to shop around for coverage.
If the retirement home insurance policy is greater than ten percent of your gross income, then it is typically going to be too expensive. In addition, it may be hard for you to justify spending that much per year if you may not ever get to the retirement home. On the other hand, the truth is that a retirement home cost upwards of $100,000 per year for care.
Medicare or Medicaid may only pay 12 percent of expenses. In order to make a more educated decision, it is important that you understand at what stages you may start living in a retirement home. It is not necessarily only if you are entirely unable to care for yourself, quite dependent on medical oversight at all times, and even unable to comprehend any longer.
Care for All Ages
If you are still middle aged, you may feel great. Realize that even an accident can set a younger person such as yourself into a long-term care facility if you need to heal from an accident, or are battling a long illness. This is another compelling reason to purchase retirement home insurance before you are of retirement age. Additionally, oftentimes insurance for retirement care is extremely expensive when you get into your sixties.
Even if you are just starting to have problems feeding yourself, or dressing yourself, you may qualify for a place in assisted living. It is deemed by the medical staff either at the home, or by your own medical professional. The insurance can help to make the expenses easier to swallow. Though, retirement home insurance may still not cover everything. It makes it a lot easier for you and your family, though.
Types of Coverage
Indemnity coverage for retirement home insurance indicates that you will be paid at a set amount, regardless of your actual home care expenses. More recently, retirement home insurance policies include something called integrated policies, or pooled benefits. This means that you are provided one maximum payment. Based on the cost of your daily care, this can last for a longer amount of time or less, depending upon your daily care costs.
There is a deductible, which requires that you are in the facility for a specified period of time before the insurance will start paying. If you choose a longer term for your deductible, then you will save money on your premium. You will still need to have health coverage to take care of your medical needs, though the long-term care coverage will help you afford the ancillary care that starts to take center stage once you move into an assisted living center.
There are a variety of stages of care, and also places where services are offered, and this is reflected in policies. If you are seeking a longer-term solution for your aging grandparents, you may have care provided where they live, or decide to move them to an around the clock skilled nursing center. It will also help pay for an assisted living facility, adult day care, and respite care.
If you are concerned about how you may pay for the costs of the premium, you are not alone. Use medical savings account funds to pay for the premiums as well. The payments you make will be treated like health coverage or accident benefit coverage. The premium payments may help to reduce your tax burden as well. You are not able to use any funds from an IRA or a 401(k) to pay for the retirement home insurance premiums.
If you determine that you would like to shop for long-term care coverage, look for the Outline of Coverage. This will detail the coverage that you can expect to receive if your purchase the associated policy. There are approximately 100 companies that offer coverage, therefore you have ample opportunity to save some money on your policy. Thus, it makes sense to shop around for coverage.
Retirement home insurance can provide peace of mind for both you and the rest of your family. It makes the prospect of long-term care less daunting. You can afford it.