You will never know what the future holds for you and securing long term care insurance is one way to protect yourself. When it comes to long-term care, you need to make sure that the insurance that you consider covers various services. Since there will come a time when you need to be assisted with your daily activities, the insurance policy should cover the costs of care services, especially if you have a chronic medical condition. For instance, Alzheimer’s disease will require patients to hire a caregiver to take care of their daily activities. Your long-term care insurance should reimburse the money you spend for your nursing home, assisted living facility, home, and adult day care center.
Your insurance plays an important role in your financial plan. Once you reach the age of 50, you need to think about buying coverage that will support you all throughout aging.
Reasons to buy long-term care insurance
The obvious reason for securing long-term care insurance is to protect your personal savings. You will never know when health emergencies will strike and without insurance, out-of-the-pocket expenses might be too much for you. If you choose regular health insurance, you will have to cover for the expenses of long-term care services. Even Medicare will not shoulder the costs. Without this insurance, you will have to pay for the services. This arrangement can hurt those with low income.
For you to protect your savings, you will need to buy long term care insurance. The decision gives you great benefits as you will have access to different types of care services. Having more choices allows you to experience a better quality of care. Medicaid only gives you limited choices and will not pay for the expenses associated with assisted living.
How do you benefit from long-term care insurance?
Do you want to enjoy the full benefits of long-term care insurance? You will need to fill out an application and supply information regarding your health. The insurer will also ask you to submit your medical records. The verification process is done face to face or by phone. It is also up to you how much you want the insurance to cover. The policy caps the amount paid during your lifetime and the amount you have already paid out per day.
You become eligible for benefits if you are unable to perform two out of six daily activities such as eating, dressing, bathing, toileting, getting in or out of a chair or bed and much more. When you want to make a claim, your insurance will request your medical documents which are subject to review. Before the insurer can approve your claim, they need to approve your plan of care. In most cases, you will need to pay for the long-term care services for 30, 60 or 90 days until the insurer reimburses the expenses. This period is referred to as the elimination period.
After the evaluation and you are proven to be eligible for benefits, that is the time your insurer will pay for your care services. You can also choose shared care options if you and your spouse bought policies. With this option, you can share the coverage amount with your spouse. If you have reached your policy limit, the shared care option will also draw from the benefits of your spouse.
How are these insurance rates determined?
Health and age: The older you get, the more health issues you will experience and the more you will need to pay for your insurance policy.
Gender: Compared to men, women pay more for their premiums as they are deemed to live longer.
Marital status: You will have lower insurance premiums if you are single.
Amount of coverage: The wider the coverage, the more you will need to pay for the insurance.
Insurance company: The prices will vary among insurance companies. Before you commit to one insurer, be sure to shop around and compare quotes.
Buying long term care insurance can be done through an insurance company or an agent. There are also insurance policies you can purchase at work. Take your time to explore options before deciding to buy so you can get the most out of your long-term care insurance policy.