Long-Term Care Insurance: A Vital Way to Secure Your Future
As we grow older, our health becomes increasingly unpredictable. Every year, millions of Americans require long-term care, either in their homes or in a facility, due to sudden accidents, illnesses, or age-related conditions. Long-term care insurance can be the solution to the financial burden and the emotional stress that such care can cause, by providing a safety net that covers the costs of care, preserves assets, and ensures peace of mind for you and your loved ones.
What is Long-Term Care Insurance?
A long-term care insurance policy helps cover the costs of that care when you have a chronic medical condition, a disability, or a disorder such as Alzheimer’s disease. In addition, most policies will reimburse you for the care given in a variety of places, such as:
- Your home.
- A nursing home.
- An assisted living facility.
- An adult day care center.
What are the types of Long-Term Care Insurance?
Traditional long-term care insurance is a no-frills, standalone insurance policy. All it does is offer to pay for long-term care services when needed. That’s it!
When does a traditional policy kick in? The policy is triggered when you can no longer perform two out of six activities of daily living (such as dressing, bathing, eating, or transferring to a wheelchair) or suffer from severe cognitive impairment. After a waiting period of 30–90 days, your benefits should start coming in.
Another option is a policy that combines life insurance with long-term care coverage. With a hybrid policy, you can access the death benefit—the money your beneficiaries would receive in the event of your death—while you are still alive to pay for long-term care.
And if you do not need care, your heirs get the full payout. In addition, rates are considered “noncancellable,” which means premiums are fixed for life.
Why is Long-Term Care Insurance important?
About half of 65-year-olds today will eventually develop a disability and require some long-term care services, according to a study revised in 2016 by the Urban Institute and the U.S. Department of Health & Human Services. Most will need services for less than two years, but about 14% will require care for more than five years.
Regular health insurance doesn’t cover long-term care. And Medicare won’t come to the rescue; it covers only short nursing home stays or limited amounts of home health care when you require skilled nursing or rehab. In addition, it does not pay for custodial care, which includes supervision and helps with day-to-day tasks.
If you don’t have insurance to cover long-term care, you’ll have to pay for it yourself. You can get help through Medicaid, the federal and state health insurance program for those with low incomes, but only after you’ve exhausted most of your savings.
Purchasing long-term care insurance can give you peace of mind and protect the savings you worked so hard to build. You’ll know that if you become ill, you can afford the care you need and still have enough money in your nest savings for you and your spouse. Plus, your kids won’t be burdened with huge payments for your care.
If you have any questions on Long-Term Care Insurance or want to compare the best policies, contact us today!
Already have Long-Term Care Insurance? Switching is easy
It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options
If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.
Contact us today to help you with multiple options to choose from.
