Long term care insurance is a type of coverage available for people who potentially may require long term care. There are many types of long term care insurance (LTCi) available but as a standard it covers things that traditional health insurance and Medicare does not and it can also protect your assets. When you purchase an LTCi policy, it takes any possible burden off of your children or loved ones to have to provide care for you financially. These policies typically cover such things as nursing homes and adult day care but can also cover things such as home care and assisted living. If you have an LTCi policy, the benefits will be triggered when you begin to need help with activities of daily living or have a severe cognitive impairment.
What You Must Know About Long Term Care Insurance:
Long Term Care can happen to you. As we get older, all of us need help and a stroke, Alzheimer's or even a bad fall can leave you debilitated and unable to care for yourself. If you are over 65, the chances of someday needing Long Term Care is about 73%, that is 7 out of 10 of us will need more than traditional health insurance or Medicare. And Long Term Care isn't just something that can happen in some distant old age... 37% of those receiving Long Term Care are under the age of 65.
If you need Long Term Care, you will probably have to pay for it out of your own savings and your next egg that took a lifetime to attain. If you're legally impoverished, government programs like Medicaid may cover your nursing home care Medicare and virtually all health insurance programs will only cover LTC for a short time (less than 100 days) and then, only in part. For everything else, the bill will come to you or loved ones.
That LTC bill is going to be a doozy too. Long Term Care is expensive. The average cost of a nursing home is currently over $70,000 – $120,000 per year. By 2030, it is estimated to rise to $190,600 – $290,000 per year. A quick note: If you live in downtown New York, you're living the future today. The average cost of a home care aid has spiked to $32.50 per hour. That adds up to thousands of dollars a month. Many people need round-the-clock care, a burden that friends and family usually can't bear, and let's face it, you probably don't want them to.
Long-term care insurance rates are determined by six main factors: the person's age, the daily (or monthly) benefit, how long the benefits pay, the elimination period, inflation protection, and the health rating (preferred, standard, sub-standard)
Long Term Care insurance can be an affordable alternative to using your savings to pay for care. Nevertheless it's not right for everyone. People that already have health conditions may not qualify for coverage, and if you are retired, with less than $50,000 in assets, purchasing insurance is probably not appropriate but always consult a long-term care specialist before ruling out long term care insurance. You should not purchase any long term care insurance if you currently receive or may soon receive Medicaid benefits, if you have limited assets and can’t afford the premiums over the lifetime of your policy, or if your only source of income is a social security benefit or supplemental security income.
Whether you decide to own a LTCi policy or not - you should know all your options before you close the door on Long Term Care Insurance. Self – insuring can be the fasest way to end up with no options and end up in Government Welfare program, called Medicaid.
As you can see long term care insurance includes a good number of variables. The most effective thing to do is, if you are between 40 and 65, speak to an expert who offers these policies. They will help you to figure out which alternative will best fit your budget. Are you looking for the right long term care insurance? Be sure to visit Kurt Lauman for FREE information concerning the importance of needing long term care insurance.
The "Official" Long Term Care Insurance Website:
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Long Term Care Insurance Blog Articles:
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You have found one of the single best sources of information on long term care insurance. We are a licensed independent insurance agency that specializes in Long Term Care Insurance. Our mission is to provide you with excellent service, helpful advice and useful resources nationwide. Find out more about Long Term Care insurance from Kurt Lauman a Long Term Care Insurance Specialist & Partner with LTC Financial Partners, LLC. (LTCFP) *Be sure to visit website for FREE Online Long Term Care Insurance Quotes from the America’s “Top” LTC Insurance Carriers & Official LTCI eGuide “Dignity For Life!”