subject: Why Purchase Long Term Care Insurance and the Considerations Behind it [print this page] Why Purchase Long Term Care Insurance and the Considerations Behind it
The major reasons why individuals purchase long term care insurance are to avoid depleting life savings to a nursing home long-stay and protect the savings and other assets of children and grandchildren. Another reason is to offset the costs of long-term care for couples with high income but have very limited assets.
And since Medicare's health insurance coverage is limited, and many do not qualify for Medicaid or cannot afford an LTC policy, often elderly and their families take advantage of the savings to pay for the care needed. Therefore, it is very crucial to think about how much amount of care can cost over a long period of time.
In general, the cost of institutional care depends largely on the time it is used. Thus, it is important to check and research the costs of assisted living facilities such as nursing homes. Also, make it a point to layout a blueprint of expected expenses in a specific duration, for example, a year or two. Actual costs certainly cannot be predicted but it can be a lot of help to prepare funds for future use.
Nowadays, home care is often cost much less than residential care. Since people often have a long-term care, they want to live at home, you might want to consider the cost of the home and community based services in your area. These services, along with home adaptations, can also help when you stay at home.
Also, do not wait for the day where you will begin to get LTC. Better start discussing the concern up front together with your family and begin searching for reliable preferences on how you can carefully plan and pay for the assistance needed. It is smart to make your decisions with a crucial analysis on your savings and financial resources or opt to applying for help from Medicaid or Medicare.
Remember, no two LTC policies are alike. Each policy has its own benefit coverage and limitations. Thus, before deciding on buying one for yourself, make time to find out what the policy covers. Be certain that the policy covers the type of care you want and need. Ask if it provides care in a nursing home, home-based or in a community-based setting.
Moreover, check premium costs. Way if you can afford the premiums behind the policy you have been eyeing. Cost of premiums rise over time and consider whether you can afford premium hikes in the future. In addition, choose a policy with a benefit that covers much of the daily cost of the services you need. Note that health care costs rise with inflation.
And lastly, cautiously examine the costs of elimination periods. Most LTC insurance includes elimination periods, more popularly recognized as waiting periods that act as deductibles. The longer the elimination period, the lower the premium and during this period individuals must pay for their own care. With this consideration, make sure you can afford before fees and expenses you will incur before your policy starts paying.
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