Long Term Care Insurance

Insuring Your Life & Protecting Your Income

The chances are good that you will need help to take care of yourself in your later years. You need to plan because it is expensive and can consume your savings. This is where long-term care insurance can help.

This care insurance helps to even out your life, such as when you can make money versus when you cannot. Long-term insurance covers many health concerns that regular health insurance will not cover.

Long-term insurance covers chronic medical conditions too, such as disabilities and Alzheimer’s disease. Most people purchase this protection in their 50s and 60s. The protection can cover one in their home, in an assisted living facility, and in a nursing home. Most purchasers of this insurance will need it for up to two years, although a small percentage will need it over five years.

To get coverage, one needs to fill out an application and answer health questions. Know that some choices on the application are for the coverage desired, and premiums will be based on the coverage desired. Then, you pay premiums. When you need to use the insurance, the company will usually send out a nurse to see what your needs are and how best to handle them. Remember there is usually a 30–90 day waiting period between initiation of premiums and when one can file a claim.

There are at least two major benefits for long-term care insurance – protection of savings and increased choices. No one wants their lifelong savings destroyed by a disability, whether that is old age or other circumstances. The cost can stagger a patient in a nursing home, even with a semi-private room (upwards of $90,000 per year). If you rely solely on Medicaid, your healthcare choices will be limited because some nursing homes do not accept payments from Medicaid.

Major types of long-term care insurance include standalone care policies and hybrid long-term care policies. Standalone policies only take into account premiums paid but hybrid policies are asset-based policies. Hybrid policies are existing policies adjusted with a rider for long-term care insurance.