Long-term care calculator: define your long-term care needs
Working out the exact cost long-term care for you or a loved one can be difficult, and having a calculator to assess the costs will instil confidence and eliminate any questions. By understanding the relation between the daily expenses of long-term care, along with economic inflation rates, and the years that the care will be required, you can then begin to determine long-term care needs and seek the appropriate insurance provider.
Let’s begin by exploring what the calculator may be used for, then progress on how you may actually use it, and conclude with how you may use it to obtain long-term care insurance.
Calculate the cost of long-term care stress-free
By working out the expenses of long term care for yourself or a family member, you can ensure that you are properly prepared to handle the financial obligation- something that can help to ensure that you or your loved one will receive the level of care and attention that is deserved. For each person care costs will vary between care facilities and providers, and will rely heavily on the level of care that is needed.
Using the long term care calculator
In order to use the long-term care calculator effectively, you should have some done preliminary research on your care provider options. This includes identifying the daily costs of care and the length of time the care will be required. This calculator will also require basic information about your financial situation and the funds that you currently have available.
When this information is added to the long term care calculator, you will be given both the annual and total costs of long term care using integrated graphs and detailed tables to assist in your understanding.
How accurate is the long-term care calculator?
The long term care calculator is particularly accurate in calculating the costs of care because it also factors in economic inflation. Therefore, if the information provided is correct you can rely on this calculator with certainty.
However, there are many intricacies and possible difficulties to obtaining long term insurance coverage and thus this calculator does not guarantee that your situation may be eligible to receive benefits.
How to use the long term care calculator
It is very easy to use the long term care calculator, provided you can say with certainty your estimated daily cost of care.
1. You simply add this information to the first line of the calculator using the up or down arrows to make this selection even easier. As mentioned previously, different care facilities and providers will have different rates and fees, therefore you may choose to do multiple calculations to compare your options.
According to the US Department of Health and Human Services, the average cost of a semi-private room in a nursing home is $205 per day, while a private room will cost approximately $230 per day. It is also worth mentioning that nursing home costs can be significantly higher in certain regions. Assisted living and home health aids begin at an hourly rate of $21 and provide health and home care services in blocks of two or four hour visits, with higher fees on evenings, weekends, and holidays.
2. On the second line of the calculator you may include any funds currently available. This is the total existing amount that you have saved towards long-term care needs but should not include other savings required to fund your retirement. You may leave this field at a value of zero if you do not wish to contribute any savings.
3. On the third line of the calculator is the expected inflation rate, as expressed by a percentage. This refers to any anticipated rate increases for long-term care costs which may be conveyed by the care facility or provider.
Long-term care costs have shown to outpace current economic inflation rates with annual price increases around 4.19%, as of 2017, and thus may be subject to further change. Therefore, it is best to discuss potential changes in the cost of care with your care provider directly.
4. Finally, you should add years of care to the fourth line of the calculator. This is the anticipated number of years you predict requiring long-term care and will vary greatly by circumstance. Over 60% of seniors in long-term care settings require the care for approximately 4 to 5 years, according to the American Health Care Association.
Your long-term care results
Once you have added these details you will be given some important information to the right of the calculator inputs where you may find your estimated total need and your estimated unprotected need.
Your estimated total need summarizes the total costs of care according to the full length of time the care is needed, and is then adjusted according to the specified inflation rate; While the estimated unprotected need refers the amount of funds still needed for the long term care, after allocating any funds currently available
Underneath the calculator inputs is an estimated annual long-term care cost, which provides a quick reference to the yearly cost of the care being sought.
More comprehensive material may be found in the first tab underneath the information fields called annual cost of long term care, where you will receive a visual guide of the rising costs of long term care over the specified years of care. This is helpful for understanding the deviation of costs due to the rate of inflation.
The estimated annual costs tab offers further insight into the fluctuating annual costs of long term care, while referencing the funds currently available. Here you may see how far your savings will go to ensure proper long-term care and at which point you may need assistance with the expenses.
Using the long-term care calculator to obtain an insurance provider
Long-term care insurance is rather different from traditional medical insurance, as with long term care policies there is greater coverage ensured. Once you have done your calculations you will be readily able to identify your care needs, which can be helpful when comparing quotes from different insurance companies.
Different companies will vary significantly in how much they will pay per day, while other companies may have caps on lifetime limits or certain waiting periods before the insurance is eligible for use. Usually there is no age restriction for long term
care insurance but it is recommended to seek insurance before the age of 50 to avoid any unwanted difficulties; as insurance companies tend offer more favourable policies for the younger generation.
It is important to be armed with the proper knowledge of your individual needs prior to seeking out the policy that is best for you.
Don’t forget to rate your experience with the long-term care calculator and sign up to receive exclusive member benefits.