Long-Term Care Insurance: What You Should Know - Part 3 of 5

3. The Cost of Local Care

Consult surveys citing average national and statewide costs for Long-Term Care (LTC) facilities. 

For example, the cost of a private nursing home in the U.S. rose +3.3% to $219 per day or $79,935 per year, according to a 2009 MetLife survey.

Unless a potential policyholder has recently had a family member receive long term care, figures like that are sure to be a jaw-dropping, eye-opener.

A more effective approach is to cite current costs at local facilities with which the consumer will be familiar. 

Instead of saying that the average daily cost for a nursing home in our state is $X, for instance, it makes more sense to determine the actual cost at the nursing home a few miles from the consumer’s home.

While it might take some time to compile that information, it’s well worth the effort.

That’s the approach Wendell Morgan, an agent with Bankers Life & Casualty in Austin, Texas, takes because he services clients’ claims after they’ve entered a local care facility. As a result, he has firsthand knowledge of the facilities’ charges and can use that information to educate potential clients.

“I can say, here’s what it costs locally. Do we want a policy that pays all the cost or part of the cost? Tell me what you’re thinking.”