Nearly half of all people over 65 will spend some time in a nursing home, according to the American Health Care association.

One year of long term care services can easily cost $50,000 and that is why long term care insurance (LTCI) is a valuable financial planning tool designed to protect a family’s nest egg from catastrophic costs.   

Well-informed choices made now could mean peace of mind later.  Some factors to consider when contemplating long-term health care.

• Consider insurance companies with a strong financial rating, capability and commitment. Look for A.M. Best highly rated carriers, assigned one of Best’s top three ratings (A++, A+ or A).
  
• Choose a policy that offers home-care in addition to skilled nursing and assisted living.  Does the plan’s home health benefit cover only caregivers from a licensed home care agency or may private caregivers be hired? May the insured use the benefits for any purpose?  Can funds be used for respite care to relieve a caregiver?
  
• Premium rates vary by company. When comparing different plans, make sure you are comparing apples to apples. One carrier may include certain features and benefits in their standard priced package while another offers them as an option at additional cost to their base policy. Other factors affecting price include age, level of coverage selected, benefit years, elimination period and inflation protection.  A longer elimination period (the number of waiting days before benefits are paid) will reduce the premium. Inflation protection at a 5 percent compound rate is generally recommended for individuals 70 years and younger.
  
• Married individuals should look for plans offering premium discounts for couples.  One very important benefit is the survivorship benefit. For married couples, this option provides a waiver of the surviving spouse’s premium payments under certain conditions.