As 2020 drew to a close, analysts revealed the results of an annual survey addressing long term care expenses. The results suggest most households obtain advantages by starting to save for senior therapy and rehabilitation expenses as early as possible. Long term care insurance policy rates typically increase significantly with advancing age.
The 2020 Survey
Every year, Virginia-based Gentworth Financial Inc. collects data from long term care facilities around the nation. The insurance company has conducted this survey ever since 2003. The results have revealed cost of care increases during every year.
The annual survey reported the median cost of a bed in a private room in a long-term care facility during 2020 increased by 3.6% nationwide. Today, the median price in the United States for this service stands at $105,850 per year. The company believes a number of factors accounted for these gradual price increases. Rising expenses associated with regulatory compliance and employee training remains significant. Additionally, increasing labor costs in many locations also contributed to rising prices. The insurance company surmises the COVID-19 pandemic likely imposed unexpected expenses upon some care facilities this year, as well.
A Significant Change
Although the annual survey reflected an ongoing upward pricing trend, it did yield some surprises. The insurance company contacted a number of households currently saving towards possible future long-term care expenses. During 2020, more individuals responding to the poll expressed a desire to prioritize this potential cost highly. In fact, four out of every ten of these survey respondents expressed this sentiment.
Experts in elder law note a variety of factors impact long-term care insurance premium rates. In addition to the age of the insured at the time of purchasing a policy, these considerations usually include the length of the benefit period. Long term care insurance policies may cover variable lengths of time in care. Additionally, the specific type of benefits available to an insured also affects the premium in most states.
Consider Planning For Long Term Care Expenses
Not everyone eventually requires long term care at a skilled nursing facility. However, many households discover benefits in discussing this issue with a knowledgeable financial planner. Taking this step may offer valuable assistance in the future if this health need ever arises!