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Long-Term Care Insurance

The Importance of Long-Term Care Insurance

This type of coverage is designed to help take care of you when you can no longer do so yourself, especially in your older years. Due to medical advances over the years, people are indeed living longer, and this means that many older or sick people will need assistance in the 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 adds up quickly and substantially. Long-term care insurance is what can help to mitigate this myriad of costs.

Who Needs It

Policy terms do vary, but one can 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, known as ‘in-home care.’

One can either purchase this type of coverage as a standalone policy or as a supplemental policy add-on (or rider) for a standard life insurance policy. 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 anywhere between 50 and 100% 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 when needed.

• Shared Couple Benefit– An option may also be purchased which allows a spouse to use the other spouse’s benefits.

Big Benefits

Those to whom it’s important 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, 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, and will afford tremendous peace of mind.