.%20In%20spite%20of%20the%20efforts%20of%20countless%20professionals%20on%20the%20field%20of%20long%20term%20care%20(LTC)%20to%20explain%20the%20product%20in%20standard%20English%20and%20insurance%20lingo,%20as%20well,%20not%20many%20people%20have%20fully%20grasped%20the%20real%20definition...){kind=link}
Its The Must-have Insurance?
What is long term care insurance? It is an insurance product that covers the long
term care expenses of an insured individual who is incapable of performing two or more activities of daily living (ADL).In spite of the efforts of countless professionals on the field of long term care (LTC) to explain the product in standard English and insurance lingo, as well, not many people have fully grasped the real definition of long term care insurance (LTCI). More often than not, it is still confused with disability insurance.
LTCI is in designed for everybody matter-of-factly. Its not like disability insurance which is only intended for employees who are at risk of losing their income because of an injury. With a comprehensive LTCI policy, the insured can receive care in the LTC setting of his choice and his insurer will cover his expenses up to the total amount of his maximum daily or monthly benefit.
Although LTCI is almost always associated with elderly people, statistics show that 40% of the current population that is receiving LTC services comprises of individuals between ages 18 to 64. The remaining percentage, which is apparently bigger, is made up of individuals aged 65 and older who will require care anytime in the future. Unfortunately, only a handful of them have secured an LTCI policy.
Majority of these seniors want to think that they will never need LTC and if ever they do their families will be there to provide them care. They refuse to put their money on LTCI because there is no assurance that they will benefit from it afterwards.
What they do not take time to recognize is the fact that there are insurance companies that offer combo LTCI policies that come with universal life insurance. This type of insurance will benefit the policyholders loved ones in the event that he dies without using his LTC benefits. However, for one to be able to avail this type of insurance product he should have a large amount of assets.
What is Long Term Care Insurance?
As the cost of care in the country continues to soar, it seems that an LTCI policy should be treated as an important investment.
According to financial planners and LTC experts, 20 years from now the cost of care will quadruple. Without retirement savings or a nest egg that exceed $2,000,000 it would be impossible for one to self-insure.
For instance, in 2030 a nursing home that is currently charging $84,000 annually will demand a whopping $336,000 per annum! So if youre expecting to receive $300,000 or less from the company that you work for upon retirement 15 years from now, this will not be enough to cover your LTC expenses.
Nobody is exempted from the cost of care. Even if you discount the possibility of entering a nursing home someday you will still spend a fortune on LTC because the rates of assisted living facilities, adult day care health centers, in-home care, and other types of LTC services will increase fourfold, too.
With all these things in mind, you can now clearly answer the question what is long term care insurance? Its not an option, its a must-have.
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