The Hard Facts of Long Term Care Insurance

by Michele Postler, Thursday, December 20, 2012

Unfortunately the Community Living Assistance Service and Supports (CLASS) Act was repealed earlier this month. This would have created a voluntary system that allowed employees to contribute to a government operation to provide long term care services to people that wanted it. It was repealed because there seemed to be no way to offer long term care insurance that people could afford to pay into. But what has happened in its place is the creation of a national long term care commission.

The National Long Term Care Commission will be comprised of fifteen members appointed by the government to look at proposals to help people afford and get long term care benefits in the future.

The members have not been chosen as of yet, but hopefully they are able to tackle that task of providing available long term care services and support to individuals that need it.

Long term care is a big issue now with the aging baby boomer population. Without proper government help at this point it is more imperative that people take the responsibility of insuring themselves for their future needs.

The first and most important step in protecting yourself in the future is to get long term care insurance when you are relatively young. The best age to get it is between 30 and 59. Most people don’t think of long term care insurance at the age of thirty but they definitely do at the age of fifty. The percentage of policies that are not approved for people aged 50 to 59 years old is only about 14% but that jumps to almost 45% if applying for long term care at the age of 70 to 79.

When you apply for long term care at a younger age, insurance companies often give you a good health discount that will carry you throughout the policy and will cost less in the longer term. The younger you are, presumably the healthier you are so companies don’t see you as a large risk and your premium will reflect that.

There are many insurance companies that offer long term care insurance and they all price the policies differently. They have different criteria that they base the premium payments on and have different health question and qualifications. The difference between each insurance company can be a couple of hundred dollars for long term care insurance up to over a thousand dollars. It saves you money to work with an informed broker that can help you decide which company provides the most affordable long term care rates and coverage you need.

Unfortunately, the time that you need long term care insurance is usually when you need some help at the time, but insurance companies will not even accept your application if you currently are using a cane, crutches a walker or wheelchair. They will not considering either if you require assistance with daily living activities like dressing, bathing, and grocery shopping, or using the telephone.

Hopefully, the members of the new National Long Term Care Commission come up with a solution to help people prepare for the future at an affordable cost.