Why Long Term Care Insurance?
Many people live a long and healthy life. The average life expectancy, however, is constantly extended as medical practices improve, new medications are introduced, and diet and exercise programs are worked into everyday lifestyles. As people live longer, the body has a greater chance of breaking down. More people have experienced the effects of strokes, cancer, and disabling diseases, and dementia and Alzheimer issues have demonstrated to be of much greater concern. Should you be afflicted by these unfortunate conditions, you may need significant help to perform normal activities. This help might be provided at home, or you might have to be admitted to a nursing facility.
The costs of care can be paid from your own assets, from relatives (children, siblings, etc.), or, if available, through government programs. The costs of care in today’s environment can escalate quickly, and can exhaust any savings accumulated over the years from investments, pensions, and other retirement programs. As an alternative, the risk of costly care can be shifted to someone else – e.g., an insurance company through a long term care insurance policy.
A long term care insurance policy provides a daily or monthly benefit to cover the cost of a stay in a nursing home, or for skilled or custodial care in your own home. Generally, your benefits are paid when you are no longer able to handle the normal activiites of daily living. You can also receive benefits if you suffer a cognitive impairment such as Alzheimers disease.
Long term care policies offer many choices to design the desired benefits. The premium is based on a number of factors. For example, the amount of the benefit has a significant impact on the premium. Elimination periods (the time frame where the insured assumes the personal risk of payment before benefits kick in) can vary (e.g., 60 days, 90 days, etc.), and the payout can be for any number of years – even a plan where payments continue for the rest of your life. Cost of living adjustments (5% simple or 5% compound) generate significant benefits to keep pace with inflation, and some policies offer first day coverage for home health care services, a shared care provision (which permits one spouse to use the other spouse’s benefits if the first insured’s benefits have been exhausted), and survivorship benefits for programs which insure both husband and wife (i.e., if no claims are filed for ten years after the policy is approved, and one spouse dies, the other spouse maintains coverage without any additional premium for the rest of his/her life).
How can I get a quote for long term care insurance?
If you would like a quote for a long term care insurance policy, please give us a call at 1- or send us an e-mail by clicking here. You can also complete the short form below: