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Long Term Care Insurance

Learn about Long Term Care Insurance

Introduction

Those who consider themselves healthy will likely have a hard time pondering the idea of not being able to accomplish such basic tasks as bathing themselves or preparing meals. There will be a fortunate few who will never need help in performing basic “activities of daily living,” (“ADL”). But a substantial number of people will end up needing daily care as a consequence of some injury or illness. Most long-term insurance plans are designed for those who are planning ahead for the many potential physical and/or mental challenges of growing old. However, these plans are equally important for younger people who wish to be prepared should long term care become necessary as a result of some unforeseen illness or accident.

Who Needs it?

Again, this type of coverage is engineered to take care of people when they are no longer able to do so on their own. We now all tend to live longer and this means that many elderly and/or ill people will need help in their twilight years. This kind of assistance, whether it be in-home care or in an assisted-living facility, can be very expensive and also add up quickly. Good long-term care insurance is what can help to mitigate these expenses.
The elderly who can’t perform ADLs due to illnesses, cognitive issues due to illnesses such as Alzheimer’s disease or those who have prolonged disability challenges are all candidates for long term care services. Policy vary, but there is a long-term care policy available any who need support for both stay-in or assisted living facilities, nursing facilities or even for in-home care.

How it Works

One can obtain this type of coverage as part of a standalone policy or in the form of a policy supplemental (or “rider”) for an existing life insurance policy. This coverage is also offered in many cases as part of an employee benefits package.
This type of coverage can compensate for many kinds of long term care situations should one be faced with a chronic illness or become disabled in one way or another.

Types of Coverage

Insurance companies will pay out anywhere between half and the entire costs of extended care. Below are some of the coverage features to be considered for good long-term care
insurance:

•Length of Benefit Payouts – One can choose how long care will be provided when the coverage is first obtained. One can opt for anywhere from a 2 to 10 years of care provision.
•Waiting Period– Most policies will only be able to pay out until after the first month of coverage, or longer, has transpired. Options are usually 30-, 60-, 90-, or 180-day time periods.
•Inflation Adjustment- The earlier a policy is purchased, the longer it can accrue interest, which can lead to bigger pay-outs.
•Shared Couple Benefit– One can choose to include a spouse in the benefit payouts.

Conclusion

Obtaining this coverage can mean unequaled peace of mind in knowing that your loved ones will not be burdened in taking care of you in your final years and, of course, in not having to pay out-of-pocket for quality care. And, as a bonus, it is relatively reasonable for even those of more modest incomes.






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