How to Compare Long-Term Health Care Insurance Costs

Long-term health care insurance is important for those who someday might need a nursing home or senior care facility, or who might use home-based care. While regular health insurance will pay for a short hospital stay, it will not cover this type of long-term care. Long-term health care insurance costs should be carefully researched and compared before deciding what plan is right for you and your family.

Instructions

• 1

  Weigh health care costs to decide how much coverage you'll need. A year in a nursing home, on average, costs about $50,000. Home care averages $15,000 a year. Call area nursing homes and home-care companies to get solid numbers.

• 2

  Ask whether your employer offers long-term health care insurance or would consider adding it. The company might cover part or all of the cost as part of its benefits package.

• 3

  Armed with the knowledge of how much coverage you need and how much you can afford to pay per month, research companies that offer this type of insurance. Consider at least five insurers.

• 4

  Compare the long-term health policies these companies offer. Determine how much coverage they offer and at what price. Also ask about deductibles and any co-insurance that may be necessary to receive coverage.

• 5

  Ask about inflation adjustments. Because you might not need long-term care for a number of years, many insurance companies offer a percentage to match the inflation of future medical costs.

• 6

  Choose the long-term health care policy that best fits you. By considering the premium amount, co-insurance, inflation adjustments, care givers and other factors, you can make an educated choice.