Debates over whether LTC policy acquisition is necessary or not has been circulating around the country since it was introduced. Surprisingly, even though there are some doubts and hesitations regarding its ability to pay out the policy owners’ LTC plans, over 10 million Americans now own one for their future needs.
One of the reasons that critics give regarding LTC policies is that it has high-priced monthly premiums and rates that most Americans, who are average income earners, cannot afford. But the government, together with some of the private insurance companies in the country, have developed programs and initiatives to make LTC policies more affordable and made its requirements more suitable and appropriate to the majority of United States residents.
One of the advantages of having an LTC plan is the benefit that insured individual gets from the inflation protection feature of his policy. Inflation protection is considered as the most important and most beneficial feature of any LTC plans because it adjusts the value of your policy and keeps up with the continuous increase of LTC services and costs. The policy will automatically adjust to the current costs of LTC services regardless if the plan was purchased at a much cheaper price. With this, there is a large possibility that an LTC owner might get and use more LTC services than what he has actually paid for.
For example,New Jersey long term care insurance costs approximately over $5,000 a month for a private room in an assisted living facility and almost $300 for the daily rate of a private room in a nursing home. Given these amounts, which are based on today’s LTC rates, one can conclude that maintaining or paying out for your LTC needs in the coming years will really be a tough challenge and a financial burden to your savings and other monetary resources. But if you acquire a policy now, chances are you will be more assured that your needs will be properly taken care of and will get the medical attention that your condition requires. Plus, cheaper rates and monthly premiums apply for those who will purchase LTC policies at a younger age and with perfect health conditions.
New Jersey long term care insurance plans provide certain levels of inflation protection as mandated by the Deficit Reduction Act (DRA) of 2005. It is based on the insured individual’s age at the time of his LTC policy application and acquisition. The younger age of purchase, the higher level of inflation protection he will get. A policy bought at age 76 and up does not require inflation protection but it is up to the individual if he wants to include it in his policy.
Just like any other policies in the other states, a New Jersey long term care insurance must also provide a minimum daily benefit amount and a minimum benefit coverage period in order to be considered a valid and an authorized LTC policy. Be sure to check out and be updated with the LTC costs in your area by inquiring via internet through the free online LTC policy assessment that some private insurance companies provide on their websites.