Understanding Long-term Care Insurance
Long-term care insurance pays for basic daily needs when they are needed for an extended period of time. It should be noted that health care insurance is different from long-term care insurance. A health care policy will usually pay for medical procedures, whereas a long-term care policy pays to help people carry out basic daily living tasks. From dressing to bathing, the policy will pay someone to help the policyholder with regular things that occur on a daily basis.
Most long-term care insurance policies will allow for several ways in which the benefits can be paid out. For example, if a person chooses to live at home but needs help with basic living tasks, the policy will pay a home health care aid to carry out such tasks. If, however, a person is admitted into a nursing home, the policy would then pay a nursing home facility. Some policies require a policyholder to wait 90 to 120 days before coverage kicks in.
Purchasing a Policy
When searching for a policy, the first thing a person will notice is that premiums tend to be expensive. A long-term care insurance policy is often not something that everyone can afford, such as auto insurance. It is of the utmost importance to compare different policies against one another, as well as carefully identify one’s own needs. In doing this, it becomes easier to find an affordable policy that will adequately meet the needs and wants of a policyholder.
Over the past several years, requirements have loosened in regards to the types of policies that a person can qualify for. Because of this, many people are now finding they can opt for a less expensive policy without having to sacrifice a large amount of benefit coverage.
It is important to keep in mind that the best time to purchase long-term care insurance is before the age of 65. If a person goes about trying to acquire a policy during the latter part of life, it is almost certain that premiums will be extremely expensive.