Long Term Care Insurance

With more and more baby boomers reaching retirement age, long-term care is becoming increasingly relevant. Other than being helpful for senior citizens, it is essential for people with a degenerative condition, a cognitive disorder or prolonged illness.

What it covers

Long-term insurance usually covers skilled nursing care or rehabilitation, which can be either at home or at a nursing facility. This is in addition to daily activities such as bathing, eating and dressing.

Paying for long-term care

There is a misconception that Medicare, Medicaid or a person’s health insurance usually covers long-term care. This is, however, not the case. Health insurance does not cover long-term care, Medicaid is a welfare program and Medicare has restrictions on long-term care benefits.

How it works

Like any other health insurance program, long-term care allows an individual to pay an affordable premium so as to prevent catastrophic medical care costs later. The premiums are usually fixed as of the date of purchase and are based on age, time of purchase, your health and the region you live in. Some of the best policies have a ten-year guarantee, ensuring no price increases over the period.

Long term care from Employers

The 80-plus group is actually the fastest growing section of the population today. A popular trend is that employers are beginning to offer long term care to employees in addition to health and retirement benefits. It is essential that people avail of such opportunities and review their carrier’s company rating before making a decision.

Choose an agency

Since making comparisons and reviewing different carriers can get quite complicated, the easier option is to approach an independent agency that sells policies from different companies. There are several such agencies that provide extensive information on different carriers and help you with the decision. While deciding on a carrier, it is important to ask your agent for the price.