Long Term Care Insurance can be an invaluable asset when you are in need of care that is not covered by regular insurance, medicare or other coverage. When you are considering getting this type of coverage, it will be helpful to know some of the details of the coverage so that you can make a knowledgeable decision about the type of policy that will best meet your needs.
There are many different options for coverage and most providers can customize the policy to meet your specific needs. The cost of the coverage varies based on your age, the level of benefits you want, how long the benefits will pay, the elimination (deductible) period, inflation protection and your health rating.
In addition, most companies offer couples and multi-life discounts on individual policies. The rate will also be different depending on which type of payment option you choose. An individual choosing a monthly or quarterly payment plan will pay a higher premium than one who pays annually or semi-annually.
Providers that can sell this type of coverage are regulated by the state and there are approximately 100 providers in the United States that sell the coverage. In order to qualify for coverage an individual must meet some requirements and cannot be in a long term care situation when they apply.
Studies have shown that approximately 60% of people over the age of 65 will need some type of long term assistance at some point in their lifetime, while 40% of people 18-64 will need this type of assistance. Therefore, in addition to the coverage being less expensive if you get it at a younger age, you will also be prepared if you need the assistance.
The coverage pays all or part of the costs for assistance that is not covered by normal coverage such as in-home assistance, assisted living, respite, a visiting or live-in caregiver, therapist, private nurse, etc. In most cases, an individual must pay into the plan for a year before they can begin receiving benefits. The coverage benefits are triggered when a physician and a representative from the provider, state that a patient needs care for any medical reason.
Some people get the coverage to supplement other types of coverage they may have for assisted living and equipment while others use this type of coverage as their sole source of benefits. When you are deciding on the level of coverage that you want, it will be important to consider how much money you will need to pay for assisted living if the need arises. Without this coverage, paying a nurse or home caregiver for 24/7 assistance will quickly deplete any savings that you may have.
When you are looking for the Long Term Care insurance that will meet your needs, it will be helpful to talk to a professional who is knowledgeable in the different options available for coverage and payment. Most common benefit periods are for two, three, four, and five years, lifetime, or unlimited. The professional will be able to discuss the advantages of each type of benefit period and the level of coverage that you will feel most comfortable getting.