Long Term Care
What Is Long-Term Care Insurance?
Much like auto, home or life insurance, long-term care insurance policies are designed to reimburse a predetermined benefit should something unfortunate happen. In this case, the benefit will help cover the costs for the physical care and day-to-day living assistance you may need if confronted by a lengthy illness, severe accident, or effects of aging.
What Kind Of Services Are Covered?
Since aging is a gradual process, it’s unlikely that you will suddenly wake up one day needing nursing
home care. Instead, most people go through several stages of care; a progression that begins with in-home
care and may—or may not—lead to a skilled nursing facility. In between, there are a host of services available
to help the policyholder and their family members enjoy as much independence as possible. A quality long-term care insurance policy will take this into account, and be ready to help ease the transition from one
stage of care to another.
Misconception On Government Aid and Health Insurance:
Many consumers believe they already have protection, however private health plans offer limited protection for
nursing facility care services and Medicare pays only for temporary care required after hospitalization. Medicaid may be available to individuals who meet strict state and federal income and asset requirements, but Medicaid is not intended as a long-term care funding entitlement. Many people who need long-term care may not qualify for Medicaid assistance.1
1 National Association of Insurance Commissioners. A Shopper’s Guide to Long-Term Care Insurance. Page 5, 2006.
How Much Can I Expect To Pay?
The price of long-term care insurance varies greatly, depending on your age, benefits you choose, and the
underwriting company. While you may not want to buy the most expensive plan on the market, history has shown that you should be wary of low-cost plans. Since rates on long-term care insurance products are not guaranteed, some companies may offer a lower price now - only to raise the premiums later according
to policy provisions. You should always examine the financial standing, ratings, and rate history of any company offering these products, and make sure you are dealing with a reputable company that may be less likely to raise your premiums.
Am I Too Young To Think About Long-Term Care Insurance?
Long-term care insurance makes as much sense for people in their forties and fifties, as it does for people who are retired. Here’s why:
- The High Cost Of Waiting: Like life insurance, the premiums on long-term care insurance policies are based in part on your age at the time of purchase, and are therefore generally less expensive the earlier you buy.
- Higher Likelihood Of Un-Insurability: The longer you wait to secure coverage, the greater the chance that a health problem may develop that could make your coverage more expensive – or difficult to obtain.
- An Early Need: Accidents and illnesses can occur at any time, at any age, to anyone. It’s important to have your plan in place before the unexpected happens.
Long-Term Care Insurance Make Sense For:
- Working families who want to protect their lifestyle and assets.
- Retirees & pre-retirees who want to preserve their nest egg and financial independence.
- Concerned parents who don’t want to become a physical or financial strain to their children.
- Adult children who want to make sure their elderly parents receive the quality care they deserve.
- People who want to take control of their future.
