Long-Term Care Insurance
Long-Term Care Insurance is a product that helps provide for the cost of long-term care generally not covered by Health Insurance. Long term care is needed when an individual is unable to perform regular activities like walking, eating, bathing, dressing or toileting due to old age, injury, mental or physical illness. Long Term Care Insurance generally covers adult day care, hospice care, home care, nursing homes and visiting nurses. It will also pay for live-in caregiver, housekeeper and private duty nurse.
Do you need long-term care insurance? Only you can answer that. Studies show that people consider getting this kind of insurance when they are nearing 70 or 80. This might be too late already as the risk is higher for the insurer. Premiums will soar and coverage will be restricted. Studies also show that 60% of individuals will need long term care during their lifetime. About 40% needing this are under the age of 65. The best time then to buy long-term care insurance is by middle age. You will be eligible and premium cost can be lower.
Consider these key issues before purchasing long-term care insurance:
1. Health Care Costs. With the soaring prices of health care, will your retirement fund be enough for you long-term care?
2. Premium Cost. Can you afford to pay the premium cost for long-term care insurance? Will it lower your standard of living and force you to give up the things you need now?
3. Coverage and Benefits. Will your policy cover all the things you need for long term care? Will it pay for any options you may decide later on? How long will the benefits last? 2 years? 6 years? Or for the rest of your life?
4. Inflation Protection. Are you protected from inflation? The cost of health care goes up and you should be protected.
Purchasing Long-Term Care Insurance takes a lot of serious thinking. Shop and compare prices just like you would do when getting other types of insurance. Don’t forget to read the fine prints. Purchase at the right time and make sure that you will get the coverage that you will need.
