About Long Term Care Insurance

What is Long Term Care Insurance?

Long term care insurance provides coverage in the event that long term care is required. It limits the risk in the event of extended illness, since it picks up expenses and costs that standard health care coverage does not, such as hospice care, nursing home, home care provider, and assisted living expenses. This greatly eases the financial burden that family members would otherwise face if they had to meet these expenses.


As people grow older, health becomes an important issue as they face the possibility of a heart attack, stroke, or Alzheimer’s. For an elderly person, any injury, fall, or operation can result in serious consequences where he or she is unable to tend to his or her daily needs. While long term care is generally regarded as an insurance vehicle for people over 65, the fact is that anyone, at any age, can require long term care. More than 25 percent of people receiving long term care are under the age of 65.


Medicare provides for care in a nursing home for only twenty days, and it covers long term care for only 100 days. Any additional costs must be paid by the patient, and that can add up very quickly. People have been driven to bankruptcy following an unplanned medical crisis when all of their savings have been used up.


Nursing home care costs approximately $70,000 per year. The expense of 24-hour home care provider can be astronomical, and even a willing family is frequently unable to contribute much.


If you plan ahead, long term care insurance can save you a fortune in the future, and it should be a crucial component of your retirement planning. The majority of family members who provide help are women, and, since women tend to outlive men by seven years, they are in critical need of long term care insurance, as are men.


Buying long term health care for yourself and your loved ones is one of the best choices you can make. The premium can be high, as much as $1,700.00 annually, but when compared to having to pay for long term care out of pocket in the future, it is a solid investment. By cutting out just a few luxuries a month, such as one visit to a restaurant and eating in instead, the cost won’t be overly cumbersome. The knowledge that any long term care expenses are being taken care of is a major relief to most people.


The over-65 population is growing dramatically. Within the next few decades, the number of seniors with disabilities will double. Today, 42 percent of seniors suffer from physical or mental limitations. As people grow older, their capacity to take care of themselves decreases and simple daily chores become difficult or impossible.


Not all long term care plans are the same, but most of them pay if a person cannot perform at least two daily activities, such as dressing, toileting, bathing, continence, and eating. Cognitive impairment, such as Alzheimer’s, is also covered. What is important is that the coverage sets in whether the infirm person is at a nursing home, hospice, or living at home. This freedom of choice can become very important.


When buying long term care insurance, it is vital that you know the deductible, amount of payout, and period covered.