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 Long-Term
Health Care Plans
Make no mistake,
major medical usually does not make
financial provisions for long term
assisted care. Recent studies have
shown long term care averages over
$60,000 per year, and private insurance
and Medicare
cover less than 3% of costs. Medicare
provides very limited coverage (skilled
nursing) for long term care and
only certain very low income individuals
will qualify for assistance through
Medicaid. And to be eligible for
Medicaid
the possibility exists you would
have to liquidate your cash and
equivalent assets to a minimal amount
along with other assets that can
be identified to pay your long term
care costs. At some point 2 in 5
persons over age 65 will enter a
traditional nursing home.
Long term care
insurance includes any individual
policy, group
policy or rider that is advertised,
marketed, and designed to provide
coverage for no less than 12 consecutive
months. This type of policy provides
a form of medical care without hospitalization.
Affecting the
premium
are the length of the elimination
period and the benefit
period. Of course, rates will
be higher for very short elimination
periods and very long benefit periods.
Here are the
key terms and conditions to consider
when selecting the appropriate policy.
Daily or Monthly Benefit
The daily or monthly benefit is
the amount of money the insurance
company will pay for each day or
month you are in a covered facility
or options were previously selected
to cover home health care activities.
Should the cost of care be more
than your daily or monthly benefit,
you will be held for the difference
from your personal assets. Again,
Medicaid comes into play for those
with very little, or any assets.
You may be required to liquidate
your personal assets to the point
to be eligible for Medicaid.
Benefit Period
Unlike standard Health
or Disability
Plans, Long Term Care Insurance
is not written to age 65, but for
a stated period, usually in years
the insured will receive benefits.
You can choose a benefit period
that spans from two to six years,
or the rest of your life, the costliest
option.
Coverage
You can choose long-term care
policies that pay only for nursing
home care, or only for home care.
Or, you can opt to purchase coverage
for a mixture of care options that
includes nursing home, assisted
living, and adult day care. Coverages
usually include Skilled
Nursing Facilities, Intermediate
Care Facilities and Custodial
Care Facilities with optional
coverages to include Home
Health Care, Hospice
Care and Adult Day Care. Some
will pay for a family member or
friend to care for you in your home,
Respite Care.
Elimination
or Waiting Period
During this period, you must
pay all of your long-term care expenses
from your own assets. This period
could last anywhere from 0 to 100
days. The longer the waiting period,
the lower your premiums.
Non-Forfeiture
Benefit
Policies with this benefit will
continue to pay for your care even
if you stop paying premiums.
This policy feature can add 10 percent
to 100 percent to your premium.
Inflation Protection
With health care costs rising
to new heights every year, buying
a policy without inflation protection
is probably buying a policy that
won't cover the greater percentage
of your expenses. There are two
classifications of inflation protection:
the right to add coverage at a later
date; and automatic coverage increases.
There are many
things to consider in order to understand
your long-term care policy. Know
when you will be eligible for coverage
and how your eligibility will be
determined. Has renewal features
as long as premiums
are current and lets you stop paying
premiums once you begin receiving
benefits. The policy should acknowledge
preexisting
conditions when initially disclosed
and provide a minimum 1 year of
nursing care and home health coverage.
FOR A FREE LONG
TERM HEALTH CARE INSURANCE QUOTE
PLEASE CALL TOLL FREE 877-732-1793
OR COMPLETE OUR SECURED
ON-LINE APPLICATION.
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