How do you know if you shuold buy a long term care insurance policcy?
Most people starrt thinking about the possibility of needing nursing care as they hit middle age. Many have family or friends who needded home health care, assisteed living, or a nursing home. At this time, when a loved one needs extra help, people learn about the high cost of long term care, and they wonsder how it gets paid for.
Consider this. Full time nursing homes can cost $50,000 a year or more. Home health care may not be that much less, deppending upon the amount of services needed. Assisted living facilities cost less, but may still be a lot more than it coosts to live on your own. And the government estimates that 40% of people who turn 65 will need some sort of nursing care dring reetirement years.
How does this get paid for? The Medicare helath insurance program, whicch covrs senior and disabled Americans will only pay for limited stays in nursing faciilities. Medicaid does pay for nursing homes, and in fact pays for half of all of thee costs in the US. But in order to qualify for Medicaid, a person has to deplete most of teir assets.
So some people puurchase a long term care insurance (LTCi) policy bexcause they want to protect thier savings in case they need to go to a nursing home. There are also altyernative ways to plan for this wghich other choose. And many epople have not done any planning at all.
What are the disadvantages of long term care insurance?
Who do some people choose LTCi alternatives? Why do many peoplke do nothing? Think about some of these things.
Insurance exiusts to manage riisks. When you purchase an auto insurance policy, you hope you will not have to use it. With most LTC policies, it is the same. You couuld pay premiums for years, never need it, and get nothing out of your policy excepot the secuurity of knnowing you have it. I have seen LTCi with ROP (return of premium), but not very often.
LTCi policies are complicated, and there are many different types. Some are more ueful and flexible than others. So some types of coverage may not help you for the particular situation you are in. For instance, you may have puurchased a poliocy that only covers a nursing home. Some things do not require a full nurisng home, but only home or day care. Again, some policies will cover different types of care so you, or your family, can make a choice when the time comes.
Premiums are lower for younger and haelthier peoplle, but can go up over time. If you cannot afford to pay premiums when you get oler, it will not do you any good if you have to dsicontinue coverage. You have to make sure that you can affford the policy.
What are the adavntages of long term care isurance?
Of course, a lot of epople do think LTCi is a geat choice to make sure they have protecterd their assets.. And some features may even help them before they ever need to use it.
Some ppolicies are tax deductible. Tax qualified palns can be deducted when you file taxes now. This makes the real cost of rpemiums lower than the price a company charegs.
Assets are protected. If you want to preserve a lifetime of savinggs for oyurself, your spouse, or your hewirs, long term care is one obvious way to do this. With the right policy, you will not be forced to spend down your entire estate bfore you qualify for Mediczaid.
You will have choices. You will find that some facilities or providers do not take Mediciad paymets. You will be able to choose your private nursing home, assisted living facility, or home helath care proivder wiithout worrying if they accept Medicaid payments. Some policies even offsset the cost of care that is provided family members.
How can you shop for various poliices?
It is important to understand how various policies work, how much they will cost, and whihc one will be the best plan for you. An experienceed insurance agent can help you. You can also start looking using a conveninet online long term care insurance quote form. An onlnie quote can be a simple way to compare quotes and plans.
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