Long Term Care Insurance

Long Term Care Insurance Explained


This kind of coverage is designed to take care of you when you can no longer do so yourself, especially in your later years. Due to several medical advances recently, people are indeed living longer lives. This means that many older and/or sick individuals will need assistance in their final years. This kind of assistance, whether it is in the form of in-home care or that of an assisted-living facility, can be quite costly and certainly also can add up very quickly to shocking levels. Long-term care insurance is what can help to mitigate these expenses.

Who Benefits

Good long-term insurance is often designed to provide assistance for those who are older. Policy terms do vary, but one can certainly find a long-term care policy with support for both stay-in or assisted living facilities, nursing facilities or even for a professional to visit a policyholder home for service. This is known as “in-home care.”
One can obtain this type of coverage as part of a standalone policy or as a supplemental policy add-on (or “rider”) for an existing life insurance policy, for example. One can even have this coverage as a part of a employee benefits package.

What it does

This kind of coverage can compensate for a myriad of long term care situations should one be struck with a chronic illness or if they might find themselves disabled in some way. This can include care in a nursing home, assisted living or even in the patient’s own home.

Different kinds of coverage

Keep in mind that insurance companies will pay between half and the entire bill for extended care. Below are a few of the other features that should be considered when purchasing this kind of care insurance:
• The Benefit Period– The policyholder has the freedom to choose how long care should be provided when the coverage is bought. Options include anywhere from a 2 to 10-year period.
• Elimination Period– Most of these policies will not pay out until after the first month of coverage or longer. Choices offered are usually 30-, 60-, 90-, or 180-day periods.
• Automatic Inflation Protection- It almost goes without saying that the earlier one purchases such a policy, the longer it can accrue interest, which can also mean larger pay-outs.
• Shared Couple Benefit– An benefit can be chosen that allows a spouse to utilize the other spouse’s benefits.

Big Benefits

Anyone who would like to be reassured of not burdening their loved ones and having themselves, in their final years correctly cared for, are perfect candidates for good long-term insurance. For example, nursing home care can often result in an overwhelming cost, often delving into the six figure arena, so even if one is relatively affluent, this coverage can still greatly be helpful. In fact, this type of coverage is actually relatively reasonable for just about any income level.