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In the final weeks of the year, many Americans may find themselves looking back on their economic health with thoughts of what can be improved in 2025. Various economic factors have affected Americans this year, ranging from a significant drop in inflation with multiple interests rate cuts several record days on the sotck exchange. And although these elements, on the surface, are all positive, it will still take some time to recover from the inflationary period of recent years. And it will require smart decision-making, especially for seniors on a budget.
This will extend to a review of their insurance protections, both what they need and what they could easily eliminate or reduce their coverage on. For many, a long-term care insurance this plan might be worth it. This unique policy can blanket costs associated with nursing homes, assisted living facilities, and in-home caretakers, among other features. But timing around an application is critical to success. And in the final weeks of the year, there will be a strong case for applying for long-term care insurance now, before 2025. Below, we’ll explain why.
Start exploring your best long-term care insurance options here.
Why seniors should take out long-term care insurance before 2025
Are you a senior now considering a long-term care plan? Or are you exploring the benefits for a family member or loved one? Here are three reasons why it’s worth applying before January 1, 2025:
Premiums will increase
Long-term care insurance works similar to other traditional insurance policies in that they become more expensive as you age. So if you wait until a new calendar year to apply, you’ll likely spend more on a policy than if you started the paperwork in November or December. This is why candidates in their 50s And 60s often obtain lower premiums than their 70s (among other factors). Waiting for the perfect time to apply could then cost you more than you anticipated (or can afford to budget for). Instead, consider acting quickly.
Find out now what a long-term care insurance policy could cost you.
Care will become more expensive
The costs of retirement homes And serviced residences are only expected to increase over time, highlighting the importance of securing a solid insurance plan now, before this increase. According to Genworth’s Cost of Care Survey, the monthly median price for a live-in aide in 2024 is $6,481, while an assisted living facility is $5,511, while a nursing home with a private room starts at $10,025. These costs are all expected to increase in 2025 to $6,675, $5,676 and $10,326, respectively. So it makes sense to start exploring insurance options now before the costs of these services become unmanageable.
Unforeseen economic factors could impact your ability to pay for help
You may have the impression that you have the economic means to pay for this care in the future, which would make long-term care insurance ineffective. But as we’ve seen in recent years, unforeseen economic factors could impact your ability to pay for aid, potentially even in the final weeks of the year.
Inflation rose in OctoberAfter all, and if it rises again in November, the interest rate cuts once predicted with great certainty for December could be put on hold – or rates could even rise. This will make everyday borrowing more expensive, thereby reducing your budget to pay for the items that a long-term care insurance policy can help cover. So carefully weigh these unknowns against the benefits of simply locking in protection now.
The essentials
The advantages of a long-term care insurance policy are considerable. To develop a truly cost-effective plan, seniors need to plan their application carefully. For many, this could mean taking action before 2025 to anticipate rising policy costs. However, as with all insurance policies, it is essential to weigh the costs against the benefits to determine true value, especially in today’s changing economic environment. So start by talking to a long-term care provider who can answer your questions.
Learn more here now.
