Forty-percent of people over the age of 65 will, at some point during their lives, enter a nursing home. Long-term care insurance is a coverage that helps supplement this costly proposition. Medicare will cover very little of the expenses, and Medicaid is only meant for those who have depleted their financial resources. You need someone to look out for you during your senior years, and that’s where we can come in.
Long-Term Care Insurance Coverages
This insurance will provide coverage for the chronically ill and, depending on the policy, can provide the following:
- Nursing home care
- Home health care
- Personal care in your home
- Assisted living
- Adult day care
- Some community facilities
Generally, you purchase a policy that pays for eligible expenses – up to a certain dollar amount – daily. You can determine how much coverage you may require by surveying the cost of nursing home and other care in your area. Usually, people buy enough long-term care insurance coverage to supplement what they will owe, but not to pay the entire cost of care. Policies can be purchased for terms of two years to life.
Long-Term Care Insurance And Health Restrictions
You must undergo underwriting to be accepted for long-term care insurance. If you have certain pre-existing conditions, you may not be accepted, or you may not get coverage for care related to that specific condition. In most states,these policies are guaranteed renewable; you will not be rejected if your health status changes. Any rate increases must be “across the board” or based on changes in the level of coverage you desire; they cannot be based on a change in your personal health condition.
How Much Do Policies Cost?
While long-term care insurance is generally expensive, there are several factors that can affect your cost, including:
- Your age when you buy the policy
- The amount of your daily benefit
- The length of your maximum benefit period
- Adding a home health care benefit
- Adding inflation protection
- Having a non-forfeiture benefit.
Long-term care insurance has many variations and available options. A personal consultation will help you determine if and what type you want to purchase.
