Long-term Care Insurance Faqs
Many people are confused of whether or not to get long-term care insurance. Most people think that they wont need such insurance since they have personal savings to cover the costs, unaware of the drawbacks that could fall on their finances and lifestyle. Here are some of the FAQs you need to know about long- term care insurance:
Who needs long-term care insurance?
Anyone who wants to protect his or her savings against the high costs of long-term care should consider purchasing LTCi.
One troubling misconception that stuck on peoples mind is that long-term care is barely needed or it wont be needed at all. Most people are also hesitant to plan for their long-term care for the belief that there are alternatives in everything. Its only they realize the benefits of LTCi when they learned that their health insurance or Medicaid covers the first few weeks in the chosen facility.
Long-term care will be needed by anyone of no certain age or health. At any given moment, the long-term care landscape in America will change: the elderly will no longer comprised most of nursing beds, but anyone between the ages 18 and 64.
The verdict goes to the uninsured. They run the risk of losing their lifetime assets for a year of stay in long-term care facility. The adversities may come in between as your children and heirs will be ones to suffer your worst financial mistake. So the best way to dodge those unlikely events is by securing yourself with long-term care insurance.
How much does it cost?
There is no one-size-fits-all policy. The policy normally depends on the persons age, health, and residence.
People with good health history can save from the premiums compared to those with medical records. For instance, a person with Alzheimer and other chronic illness will need more care and so the policy should cost higher. The price also varies from state to state. The rates in New Jersey and other metropolitan areas are obviously higher than the rural counterparts
Older policyholders receive much expensive premiums, but it is always more practical than paying out-of-pocket expenses. Anyone who assumes that LTC insurance is expensive doesnt even realize how much he or she will shell out from personal savings.
Who should not buy long-term care insurance?
Those with no means of paying the coverage, without assets to protect, and without family to pass their assets may need not apply for long-term care insurance, but they could qualify for Medicaid.
Some people with chronic illness feel that they wont qualify for coverage due to their health condition. However, the only way to find out if you are qualified is to apply and see if you still qualify. Theres no harm from trying, so better try your luck.
A single person with no family assumes he/she doesnt need coverage, but if he/she owns assets and needs care, LTCi will be needed.
How much nursing home costs?
In 2008, the average cost of nursing home care nationally was $75,000 per year. The costs differ in the statewide level. A private room in a nursing home in New York amounted to $385 a day the same year.
The prices for nursing homes increase every year. So how could an uninsured retain his or her assets without LTC insurance? Not only the nursing homes are expensive but also the home care. The rates for home health aides rise every year, making it depressing for the uninsured to cover the costs from personal finances.
Does Medicare pay long term care?
Unfortunately, only a small portion of long-term care expenses will be covered by Medicaid. You have to reach the poverty level first before qualifying for coverage. You must have $2000 total assets, with no car, home, and personal resources.
by: Christine Walker