Long Term Care Insurance: What To Know
Long Term Care Insurance: What To Know
The moment adults are inflicted with debilitating sickness and/or disability signals the need for long term care services to prolong their lives. However, these services are very expensive that an average taxpayer would find it hard to cope with the bills. Both institutional and residential care rates are costly that are potential threat to a person's finances. With nursing home rates that rose to $75,000 a year this 2010, how can you pay the bills that may increase up to $90,000?
Where can I get long term care insurance coverage?
Long term care insurance is reasonably a good way to protect all your assets that you have worked hard all your life to achieve. You surely don't want to throw them away for nursing homes, do you?
There are number of insurance companies that offer LTCi policies throughout United States. These policies can be purchased by individuals or by groups.
How to choose a long term care policy?
There are different types of LTCi policies offered these days. Indemnity long term care insurance or "per diem" policy pays a benefit that may exceed you actual expenses. However, reimbursed policies only pay for the benefit amount that your policy issues and you are reimbursed for the actual expenses received in a day, week, or month.
Nowadays, many companies also offer policies with pooled benefits. This type provides benefit amount that may be used to avail different long term care services.
There's no certain policy that covers the overall expenses. You normally choose the daily benefit amount from $50 to more than $300 for nursing home. The daily benefit for home care is generally less expensive than nursing home care. Remember that you will shoulder the expenses that go above your daily benefit amount.
Aside from your ordinary LTCi, policy, there are important riders that should be added but expect your premiums will go higher. The inflation protection significantly shields your policy from the rising rates. This automatically increases your daily benefit, but the price of premium is not affected.
What are the costs?
There's no fixed price for long term care policies. The price of premiums is often affected by the factors namely age, benefit amount, the duration of coverage, and the waiting period. People who purchase policies at younger age should expect much lower premiums compared to those who purchase policies in their late 60s or older. The daily benefit amount should reflect in the premium. Otherwise, the elimination or "waiting period" is the number of days that the person will pay out-of-pocket expenses before the insurance company butts in. The longer elimination period, the lower premiums become.
What LTCi covers?
Many of today's long term care policies cover different types of services ranging from skilled, intermediate, and custodial care in a nursing home. Policies may also cover home health care, assisted living, adult day care, and other services in the community.
What is not covered?
There are limitations or exclusions defined by insurance companies. A pre-existing condition may limit you from purchasing a policy. Mental and other cognitive disorders are not covered. People who have had reports of alcoholism and drug addiction are prohibited. The Underwriting Process in Long Term Care Insurance The thread separating life and death is very thin! Mortgage Life Insurance or Life Insurance, What Is best? I Live Alone Do I Need Life Insurance? How To Take Care Of All Your Final Expenses With Burial Insurance For Seniors Life Insurance For Police Officers And Other Law Enforcement Individuals The Many Options Of No Medical Exam Life Insurance. What Is Best? Life Insurance You Can Borrow From What are the risks covered by a life insurance? Silk Scarves - Diverse Opinions In Both Trend And Everyday Life Viewpoints A Guide To Life Insurance By Age Top 10 Most Important Factors Affecting Your Life Insurance Rates Over 50 Life Insurance Plans