If you are interested in purchasing long term care insurance, but unsure how much benefit to buy, a good starting point would be looking at the cost of care in your area.
The national average cost of care varies by the type of care you are looking at. For example, the national average cost of care for home health care is $45,760 a year, while around the clock care in a nursing home averages $91,250 a year.
The costs vary significantly based on what state and region you live in. The cost of care for a nursing home in Oklahoma is around $60,000 a year, while the cost in Alaska is over 200% more at about $281,000 a year. That is why knowing the cost of care in your area is crucial.
Having a plan that covers the current cost of care is great if you need care today, but what about 20-30 years from now, when you will likely need care? To account for growing costs of care, you will want to buy a policy that has some sort of inflation protection to have your benefits grow over the years. The average cost of care has typically grown at a rate of 1-4% annually, so purchasing a 3% compound inflation may be a great option to maintain buying power over the long term.
To see what a long term care insurance policy would cost you, check out our Instant Quote Tool.