Long Term Care Insurance: What Is It?

By Kyle Fitzsimmons, InsuranceAgents.com Staff Writer 

Long Term Care Insurance: A Piece Of Mind 

If you can no longer perform the tasks that go with daily living on your own and require either supervision or assistance to complete these tasks then long term care insurance may be right up your alley. Ailments such as Alzheimer’s disease can render an individual helpless unless they have the funds to pay for such services as assisted living centers and nursing homes, and that is where long term care insurance comes in.  

Note: Compare insurance quotes for any type of insurance, be it auto, home, health or life, and ensure you get the best rates and save more in the long run.

But before you purchase long term care insurance there are a couple important questions you might want answered. 

• “Is this kind of insurance right for me?” Fortunately, for those who can afford to pay the aforementioned living expenses out-of-pocket and for those who qualify for Medicaid, long term care insurance might be avoidable. However, for everyone else, it can be a viable option for ensuring you are taken care of when you can no longer do it yourself.
• “What’s the best age to buy?” Generally speaking, it is wise to purchase long term care insurance before you’re 60. This is because the younger you are when you apply, the lower your premium will be for the determined amount of features and benefits. Also, if you apply before age 60, your chances of being accepted are much greater than if you were to apply at, say, age 70.
• “How much is this going to cost me?” The cost of long term care insurance depends on several factors: the cost of living in your part of the country, how long you will need to be cared for, and the specific services you require. According to the Insurance Information Institute, a four-year-or-longer stay in a nursing home could run you anywhere from $200,000 to $450,000. If you are not eligible for Medicaid and cannot foot that kind of expense yourself then long term care insurance may be an attractive option.
• “How can I save on this kind of insurance?” Long term care insurance isn’t going to be cheap but there are ways you can save. First and foremost, keep your premium to, at most, 7% of your income. Also, find out if your employer has a group policy that may subsidize your costs. You can also look into a joint policy if you’re married, buying a policy with the longest waiting period you can afford, and possibly adding long term care as a rider to an existing annuity or life insurance policy.

Long Term Care Insurance Is Worth The Cost 

Many individuals rely on relatives and loved ones to provide care as they get older. But circumstances arise and you can never be sure if that unpaid caregiver will always be available to care for you. There are also a lot of individuals who fall in the grey area of not being poor enough to qualify for Medicaid and not being rich enough to afford assisted living out-of-pocket. If you can relate to these scenarios then long term care insurance might be what you’re looking for.

Published: Monday 17th August 2009