Posts Tagged ‘Care Insurance’

What You Need to Know About Long Term Care Insurance

November 14th, 2022

What is long term care insurance?

Long term care insurance is a type of health insurance designated to provide care for individuals living with a chronic illness or injury. Long term care insurance provides both medical and non-medical assistance to the insured, whether in a care facility such as a group home or a nursing home or living in their own home and in need of help with their daily care. It differs from other types of care that are covered by traditional insurance coverage because it pays for help with custodial care, or assistance with tasks of everyday living that most people can do for themselves.

It is often a difficult task to begin thinking and talking about long term care insurance. We don’t like to think of ourselves as no longer independent and able to care for ourselves. However, just as with car insurance, life insurance and home owner’s insurance, long term care insurance is an extremely important piece of security and protection for you and your family. You may never need long-term care, but when a disabling injury or illness affects your life it often results in long term effects that prevent you from carrying out your activities of daily living such as bathing, dressing, and using the bathroom. This is when it is often necessary to have ongoing help. It can be burdensome or even impossible for family members to provide this level of care on a long term basis. When this is the case, other long term care options may be the most logical choice for your needs.

Is Long Term Care Insurance Expensive?

Depending on the level of care that is needed and the length of time the care is needed, long term care can become extremely expensive. The costs can include supplies and medications, nursing care or direct care help, adaptive equipment, physical therapy equipment, and other needs that are not covered by traditional health insurance. These long term care needs may be a temporary situation, but are generally health care needs that the insured well have for the rest of their lives.

Like all types of insurance, it is possible you may never have a claim against your long term care insurance policy, but if chronic illness or injury leaves you unable to independently care for your activities of daily living. It is expected that this year over 9 million adults in America will need long term health care. That number is expected to rise as high as 12 million by the year 2020. As many as 70 % of elderly adults who need long term care will receive it at home from family or friends. Long term care insurance will cover the costs associated with this type of at home care.

Of adults over the age of 65, there is a 40% chance they will need to consider nursing home care. About 10% of the people who enter a nursing home will wind up staying there for five years or longer. By having long term care insurance, you don’t need to worry about whether your Medicare or primary health insurance will pay for care in the nursing home. Your long-term care insurance will cover these expenses.

What About Medicare?

Many seniors depend upon Medicare to help pay for their health care costs. However, Medicare does not pay for most long-term care. Medicare will pay for medically necessary skilled nursing care whether in facilities or home care, but you must meet eligibility requirements and most other options must be paid for by different means, such as long-term care insurance.

However, not all long term care insurance is the same. Some will pay only for nursing home care, while others will pay for a wide range of services and cares such as informal home care, adult day care centers, assisted living services or facilities, medical equipment and others.

When you are considering different long-term care plans, it can be very helpful to think about the different activities and functions you may need help with. You should consider what future needs you may have, especially any that are based on conditions or situations you are already dealing with. Consider activities of daily living such as bathing, dressing, eating, toileting, and moving in or out of bed, a chair or a wheelchair. Next, think about additional services you might need help with like shopping, preparing meals, housework and laundry, getting to appointments, handling finances and bill paying, using the telephone and home maintenance and repair work. Further, consider whether you will need help with remembering to take your medications, monitoring your diabetes, using eye drops or ear drops, getting oxygen or caring for a colostomy bag or a bladder catheter. These are all areas that a long term health insurance plan can help you pay for.

How Important is Long Term Care Insurance?

Long-Term Care Insurance – What to Do & What to Avoid

October 14th, 2022

Long-term care financing and planning takes some thought and education to put together a policy that is best for you and your financial situation. It is easy to get confused and become paralyzed into “inaction.” Here are some key points of what to do or not do.

Purchasing Too Much Coverage:

It is important to get some type of long-term care insurance without over insuring. Look at your finances and determine how much you can comfortably afford to pay for long-term care and co-insure with your long-term care insurance policy. Purchasing long-term care insurance can be compared to buying an auto. A Ford will get you to the same place as a Mercedes, but it will cost you much less. Having some long-term care insurance is better than not having any long- term care insurance.

Waiting Too Long:
You will not save money by waiting to purchase long-term care insurance at a later date. The cost for you today is less expensive than it will ever be. As you get older, the rates go up.

Inflation Protection:
You need to seriously consider 5% Compound Inflation Protection, especially if you are under 70 years of age. It costs more, but it adds all the value to your long-term care insurance policy.

A Sound Long-Term Care Plan:
It is necessary to learn what your options are in the event that long-term care is needed. Do you have the assets to cover the expenses and still live the lifestyle you desire? Where do you want to receive care? How quickly can you liquidate your assets? Will you lose money if you liquidate? What are the tax consequences? Do we have enough income to live on?

Impact on Family:
How will a long-term care event affect your family? What happens when a spouse needs care? Will this affect the work of the other spouse? Is the family capable of providing the necessary care? Can the children help? How will this affect their work and family?

Many think that Medicare will cover all of the costs of long-term care. This is not true. It covers some very limited costs that meet Medicare’s criteria.

Comparable and Competitive Quotes:
Some companies are more competitive in relation to age or health status. Long-term care insurance quotes should be compared from at least three of the top companies. Different companies have unique “sweet spots” depending upon age, marital/partner status and health

Long-Term Care Insurance Specialist:
Consult with a Long-Term Care insurance Specialist, an independent agent that stays informed of new plans that come into the marketplace. A long-term care specialist can easily help you compare the different plans getting them closer to an “apples to apples” comparison.

Shopping by Price:
Getting the lowest price for a long-term care insurance policy is not the way to plan. The cheapest price may or may not have the options that you will need when you are ready to use your plan.

Top Carriers:
When getting long-term care insurance quotes from three different companies, it is important to check the financial ratings of the company. You should look for companies with at least A ratings.

Long-Term Care Costs:
You need to be informed of the real cost of long-term care (home care, assisted living, nursing facilities) in your area. If you live in an expensive State, you will need to adjust your long-term care insurance benefits according to what the costs are in your area. If you are planning to retire to a less expensive area, then that should also be taken into consideration. Different considerations should be taken if you are planning on living overseas.

A Long-Term Care insurance specialist who represents the