Long Term Care Insurance
Long term care insurance is designed to protect you and your family from financial disaster whether you need long term care at home or in a nursing home. Most of us are familiar with the type of health insurance that pays for doctor visits and hospital bills. However, the type of insurance that pays for nursing home stays and home health care is entirely different.
Long-term care is a step beyond medical and nursing care. It includes all the assistance you could possibly need if you ever have a chronic illness or a disability that leaves you unable to care for yourself for a prolonged period of time. Individuals can receive long-term care at home, in an assisted living facility or in a nursing home. Long-term care is assistance with any activities of daily living, which can include bathing, dressing, transferring, eating and continence. Long-term care can also include short term rehabilitation; for example, a three-month rehabilitation after a knee replacement.
Long-term care insurance premiums are based on your age and the condition of your health when you purchase a policy. Private insurance companies sell long-term care insurance policies. They may sell them to individuals through agents or sometimes through the mail without using agents. Some companies sell coverage through senior citizen organizations, fraternal societies, and other groups or associations. Many employers now make long-term care insurance policies available to their employees, their employees’ parents and their retirees. Insurance companies must be licensed in your state to sell long-term care insurance. Be certain that you are dealing with a company that you know. If you decide to purchase long-term care insurance, be sure that the company and the agent, if one is involved, is licensed in your state.
Not everyone should buy a long-term care insurance policy. For some, a long-term care policy is an affordable and attractive form of insurance. For others, the cost is too great, or the benefits they can afford are insufficient. You should not buy a long-term care policy if it will cause a financial hardship and make you forego other more pressing financial needs. Each person should carefully examine his or her needs and resources to decide whether long-term care insurance is appropriate. It is also a good idea to discuss such a purchase with your family and a trusted insurance agent.
If you buy a long-term care policy, it is critical that you understand the coverage for the variety of long-term care services available. Some policies cover only stays in nursing homes. Others cover only are in your home. Still others cover both nursing home and home care. In addition, many policies also cover services provided in adult day care centers or other community facilities. Many long-term care policies will only pay for care provided in licensed nursing facilities. Most policies on the market today do not distinguish among the types of nursing home care or level of care that is provided. They will pay for any care you need, provided, of course, you need long-term care and meet other eligibility requirements contained in the policy.
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