Long Term Care Insurance

It’s not pleasant to think about needing long-term care in the future. We all like to think that we’ll be independent until we pass away. In fact, many people do not think about long-term care options until they are faced with caring for a loved one, or when they are at a point where they need long-term care themselves. So why is planning for your potential long term care costs so important? There are two main reasons that make planning ahead vitally important: the likelihood that you’ll need long-term care in the future and the cost of care services.

If you’re healthy now, the chances of needing long-term care in the future can seem small. Statistics show that there is a good chance you, or someone you love, will need long-term care beyond the age of 65. In fact, approximately 70% of adults over the age of 65 require some services, and the likelihood of needing care only continues to increase with age. So, there’s actually a very high chance that you’ll need to pay for long-term care services in the future.

The other key reason to consider is that long-term care is very expensive, especially for services that aren’t covered at all by your health insurance or Medicare policy. It’s common for people to underestimate the costs of the care they may need by at least 50%.

With the high cost of care and the very real possibility that you’ll need to pay for care services in the future, it is critical to think about long-term care solutions, and plan ahead for these situations before they impact your life and your finances. Waiting to learn more about the long-term care options available can lead to difficulty getting Long Term Care insurance and potentially a lack of resources to pay for needed services in the future.

It’s never too soon to start thinking about your long-term care options, read on to learn more about long-term care insurance and discover how enrolling in an LTC insurance plan could help you plan financially for your future health care needs.

What is Long Term Care Insurance?

Long Term Care Insurance is a type of insurance specifically designed for individuals heading toward their retirement years and later stages of life. LTC Insurance will help cover the cost of long-term care if you develop a disability, degenerative disease or chronic health condition.

What Does Long Term Care Insurance Cover?

Long-term care insurance provides financial coverage for services that are needed for the policyholders. These plans will often cover care services that are limited or not covered by a health insurance or Medicare plan. LTC Insurance may cover the cost of care provided either in your home or at a care facility, which means that you can choose where you receive care. Enrolling in a long-term care insurance plan will help you make payments to daycare centers, assisted living facilities, nursing homes, or for skilled care providers who may visit your home. This means if you, or a loved one covered by a LTC policy, develop a chronic illness or disability your LTC Insurance plan can step in to cover the cost of help where needed. This can range from assistance with daily activities such as bathing, dressing and eating to more skilled care that takes place in or out of your home. One important thing to remember is that LTC plans have a daily payment limit. This limit means that LTC plans will only cover care costs up to the maximum allowable amount per day. You will need to pay any costs above this daily amount out of pocket. You should also be aware of the policy maximum; once you reach the amount, the policy will no longer pay for any care costs.

Health Insurance and Medicare Plans Provide Zero or Limited Long-Term Care Coverage

Many people choose not to enroll in LTC insurance under the misconception that their employer-based health coverage will pay for extended care services. However, this is not the case. In addition, services like Medicare only cover short stays in nursing homes or a limited amount of in-home care. In cases like this, you will have to meet very strict conditions prior to receiving financial assistance. A LTC policy can help cover these additional expenses.

Choosing An Long Term Care Insurance Plan Can Protect Your Savings And Expand Your Care Options

When faced with paying for long-term care, many people end up using their retirement savings to cover the cost of care services. It’s no secret that the cost of care facilities can be extraordinarily expensive. It means that your healthy retirement savings account could be depleted quickly if you develop a long-term illness. If you’re covered by an Long Term Care insurance plan, your care, up to the policy limit, will be paid for by your LTC insurer. This means your savings won’t need to be used for care costs.

One of the other main benefits of LTC plans is that it gives you a larger budget to pay for care. Whether you choose a care facility whose costs are within the insurance limits, or a more expensive care option that you’ll use savings to pay for in addition to the LTC coverage, you’ll have far more available options than if you had to rely on paying purely with your own savings!

Obtaining An Long Term Care Insurance Quote
When determining when you should begin thinking about purchasing LTC insurance, consider the following factors:

Your Age and Current Health: Remember that LTC insurance costs less when it’s purchased when you are younger and in good health. As you age, and your health declines, you may be unable to apply for coverage.

Premium Increases: Long Term Care insurance costs tend to increase over time, and as you age, you may work less resulting in a less income over time. It’s important to think about how you will pay the premiums for your policy now, and in the future.

Your Taxes: It’s important to note that benefits paid through long-term care policies are not considered taxable income.