Long-Term care insurance is usually the last type of insurance to get. Some of the reasons for this are that no one wants to think of themselves needing help with bathing, eating, etc. It is very easy to procrastinate or hope that your savings will be sufficient to meet any associated expenses that will occur. Long-Term care costs are increasing rapidly with the average cost of a Nursing home at over $ 70,000/year.
Long-term care is typically by those who are frail and elderly, but statistics show that long-term care is required by anyone with a debilitating illness or injury who needs assistance to perform what is considered everyday functions, such as feeding oneself, bathing and getting dressed.
Long-term care insurance must be purchased before the insured requires the services covered under the policy. You can’t get homeowners insurance while your house is burning down. This means that you must put together a long-term care plan and purchase a policy well before you will every require needing the services.
Long-Term care insurance is beginning to be offered through your employment. If you are employed, you may want to check with your employer regarding this coverage. Many employers will even extend coverage to parents of their employees. There are tax benefits to the employers who offer long-term care insurance to their employees.
There are many different factors that help determine the cost of long-term care insurance. Health is an important consideration in this type of insurance as it is medically underwritten and with good health there are discounts. A long-term care specialist can help sort out the “bells and whistles” of the different carriers enabling you to choose what is of value to you and your unique situation. The cost of the policy may also be affected by the preferred location of the service- whether in-home, at a nursing home or at some other facility providing professional care- and whether the coverage is comprehensive or basic. as defined by the policy.
Here are some other features you should consider before you choose your long-term care insurance:
o Inflation protection- Does the policy include an inflation protection feature? This ensures that your pool of money will increase as the cost of long-term care increases.
o Elimination Period/Deductible- Does the policy include a deductible, and if so, how does it define it? For instance, the insured may be required to pay expenses out of his or her pocket for a certain number of days, as defined by the deductible.
o Daily Benefit/Coverage-Coverage is the amount of expenses covered by the policy. Some policies will pay up to a certain amount per day. This could affect the type of care you choose-whether in-home or at a professionally-run facility- and the care provider you choose, depending on their fees. Higher coverage usually means a higher premium. Whatever the costs involved, you need to be aware of coverage so there are no surprises when you need the benefits.
o Number of Years/Period of coverage- a plan may limit coverage to a certain number of years. Additional coverage may require additional premiums.
There are many benefits for purchasing Long-Term Care insurance. If the need for long-term care arises and you don’t have insurance, the associated costs may have to be paid out of personal savings or financed by loved ones. If you are unable to afford the cost of hiring care providers, family members may be required to assist you, which means they may have to take unpaid leave from work. By purchasing long-term care insurance, you help to ensure that any costs associated with your care are covered, thereby lessening the financial burden on yourself and your family.
A benefit of purchasing long-term care insurance at an early age, when you are healthy, is that the premiums are usually lower. Be aware that the coverage may be denied if the potential insured is already at a stage that requires long-term care.
For example, if someone already has Alzheimer’s’ disease, he or she is no longer eligible for long-term care insurance. Finally, remember that paying premiums is less costly than pay long-term care expenses out of your pocket. Before purchasing a policy, be sure to consult with a Long-Term Care Specialist who has extensive training in long-term care. An independent agent will help you compare rates, features and benefits offered by the different companies.