subject: Preparing For Long Term Care Insurance [print this page] Most of us are counting on Medicaid, disability insurance, personal savings and other resources in battling with the challenges of old age. We rarely--or not at all-- think about the possibility of staying in nursing homes some time in the future, as it only makes us vulnerable to suffering and distress,
Everything in your home--car, house, appliance--is insured, and you never complain even if those dwindle your money. Why not insure yourself, too? Not buying long term care can be the worst mistake you'll ever make in your life.
Misconceptions
Myth # 1: Disability insurance will pay for my long term care needs.
False. Disability insurance and long term care insurance have strong differences. Disability insurance pays you if you can no longer work due to disability; long term care insurance covers your care in a nursing home or an assisted living facility. Also, most disability insurance ends when you reach the age 65, but typical LTC insurance takes effect after the age 65.
Myth #2: Medicare/Medicaid will cover all the expenses for long term care
Medicare and Medicaid do not shoulder all your entire LTC expenses, unless you are impoverished. You must meet the poverty level in order to receive help from Medicare, but you don't want to become poor, do you? Also, the quality of care provided in Medicaid homes are not the same as the care administered in private nursing homes.
Myth #3: My children will take care of me when I become old
If you are a parent, you would think that you no longer need LTC insurance because you have children to look after you. They might or they might not. Open your eyes in the reality that your children will someday raise a family, and all of their attention will focus on their own family and you'll come second in their priorities. Soon, your youngest daughter will have to leave home to pursue her career and the eldest will have to move in with his/her spouse.
With LTC insurance, you may stay independent despite of your old age and frail body. You won't pester your children with such expensive bills or exhaust the family's savings, because you have already paid everything for yourself.
When Should you Buy LTC Policy?
Financial planners and experts recommend the best age for buying long term care is between ages 40 and 50. The premiums or rates are much lower on that age group, and the benefits are locked in even though you develop medical condition in the succeeding years.
LTC insurance is expensive to those who wait at the closest time they will likely need it, while, in fact, the cheaper ones are offered at younger age. Married couples receive discounts than single individuals do because they need to provide care of each other longer.
Standard Provisions of LTCi
30-day free trial. You are entitled to cancel your policy for the first 30 days, with money back guarantee.
Guaranteed renewability. A company cannot cancel your policy as long as you continuously pay for the premiums
Unintentional missed payments. A person may miss payments due to physical impairment or other medical condition. If this happense, the insured has up to six months to pay and redeem the policy.
Home modification - You can get a lump sum to make your home more comfortable for your condition. For example, installing wheelchair ramps or grab bars will help you perform activities better.
Respite care - You receive this when a home caregiver is away or on a vacation
Waiver of premium - After you become disabled, your premium is waived
by: Christine Walker
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