About AARP Nursing Home Insurance

About AARP Nursing Home Insurance

Function

AARP Long Term Care insurance is intended for members of the organization ages 50 to 64 who want to cover some of their possible costs associated with moving to a full time assisted living facility. The insurance is rather expensive relative to most other insurance policies, in part because moving to a nursing home is often a conscious choice made by a senior. You should only purchase an AARP Long Term Care Insurance if you do not already plan to move to an assisted living facility.

Significance

The costs of moving to a long term care facility are not entirely absorbed by this insurance policy, although they are defrayed. If you are concerned about whether or not your retirement savings will be able to cover an extended stint in such a living facility, then this policy can give you some breathing space in your retirement planning. The earlier you sign up for the policy and the better healthy you're in, the lower your costs will be.

Considerations

Unfortunately, the AARP does not offer Long Term Care Insurance in every state. Check the AARP insurance finder tool linked below in the resources to see if the AARP offers this insurance in your state. One advantage of Long Term Care Insurance is that you don't even need to move out of your home to make use of it. The policy covers visiting nursing services, so you don't need to uproot yourself from your community when you start to require help for your daily needs.

Benefits

Health insurance does not cover many long term care expenses that can start to significantly eat into your retirement savings. It's easy to plan for the basic retirement costs like housing, food and the rest of it, but home care can be a massive unpredictable cost. The cost of the policy, however, can be quite high - between $2,000 and $3,000 per year as estimated by the AARP - so it's not for everyone. If you think you may need it, however, the savings can be significant, as many people getting nursing care can end up spending that much money per month.

Expert Insight

The best time to purchase Long Term Care Insurance is while you're still middle aged, employed and in good health. The premiums will be lowest, and you may be in a better position to determine your risk of needing long term care. Speak with your doctor for advice and to try to get an estimate on how much your long term care would end up costing. If you're not likely to need significant care, this insurance plan may not be for you.