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Long Term Care Insurance

The Importance of Long Term Care Insurance


This type of coverage is engineered to help take care of you when you can no longer do so yourself, especially in your elder years. Due to several medical advances over the years, people are indeed living longer, and this means that many older or sick people will need assistance in their final latter part of their lives. This type of help, whether it is in the form of in-home care or within an assisted-living facility, can be quite expensive and certainly can easily add up quickly and substantially. Long-term care insurance is what can help to mitigate this myriad of costs.

Who needs it?

Good long-term insurance is often available to provide assistance for the elderly. Policy terms do vary, but one can certainly find a long-term care policy with support for both stay-in and assisted living facilities, nursing facilities or even for home visits by a professional; this is known as “in-home care.”

One can purchase this type of coverage as part of a standalone policy or as a supplemental policy add-on (or “rider”) for a standard life insurance policy, for insntance. One can even have this coverage within an employee benefits package.

How it works

This type of coverage can pay out for a myriad of long term care situations should one be stricken with a chronic illness or if they find themselves disabled in some way.

Types of coverage

Keep in mind that insurance companies will normally compensate between half and fully for the entire bill for extended care. Below are a few of the other features that one may wish to consider when purchasing this type of care insurance:

• The Benefit Period– The policyholder may choose how long care should be provided when the coverage is bought. Options include anywhere from 2 to 10 years.

• Elimination Period– Most of these policies will not pay out until after the first month of coverage is over or, in some cases, longer. Choices offered are usually 30-, 60-, 90-, or 180-day periods.

• Automatic Inflation Protection- It almost goes without saying that the earlier one purchases such a policy, the longer it can build up through the earning of interest, which can also mean bigger pay-outs.

• Shared Couple Benefit– A benefit can be opted for that allows a spouse to use the other spouse’s benefits.

Big Benefits

Those who would like to know that they will not be burdening their loved ones and will also be well cared for in their final years are terrific candidates for good long-term insurance. For instance, nursing home care can often result in huge costs, often six figures, so even if one is relatively affluent, this coverage can still be greatly beneficial. In actuality, this coverage is relatively inexpensive for most, regardless of income level.