Long Term Care Insurance

Most of the traditional medical plans and Medicare don’t cover long-term care expenses. This is where long term care insurance picks up where the other plans left off, to offer valuable financial protection. Long term insurance protects you and your family from all costs associated with nursing home or adult care services, with financial security in the event of one not being able to care for oneself and has the need for long-term care.

To obtain a policy, one has to do some research amongst different insurance companies to find out which company gives the most acceptable quote. Upon choosing the right company, one is given a contact form to fill, the particulars of which are verified by the company. The policy will then be handed over to the applicant. One need not apply or be approved for coverage for one’s family members to apply. Anyone from the family may apply individually apply for this coverage.

Long Term Care Insurance Is Portable

One can choose a daily maximum benefit (DMB) of variable ranges. Then depending on the care received, the insured will receive up to a certain percentage of the DMB elected. Nursing home charges receive 100% of DMB, informal care like housekeeping, shopping for a maximum of 30 days annually receives 25% of DMB and home health care or adult day care services receives 60% of DMB.

Long term care insurance is a portable form of insurance. Upon leaving a University, one can maintain the same policy, paying the same premium. The cost of coverage is usually based on the plan chosen, and one’s age on enrolling. The younger one is, the lower is the cost.

Evidence of Insurability May Not Be Required

There is no need of providing evidence of insurability if one elects for long-term care insurance coverage within 60 days of becoming eligible. If one decides at a later date, then some evidence of insurability is needed, to be approved by the insurance company. In case of one’s spouse enrolling within 60 days of becoming eligible, they have to complete a shortened enrollment form. Anyone of the family enrolling after the 60 day period have to provide evidence of insurability to be approved by the insurance company. It should be note that long term insurance begins to pay benefits 90 days after it’s determined that the insured is cognitively impaired or cannot perform two out of six activities of daily living.

Upon electing for long-term benefit, coverage is guaranteed as long as one continues to pay premium. If one stops paying premium after 3 years of enrolment in the plan, one will be eligible for reduced benefits. The maximum the plan may pay during one’s lifetime while covered in the plan is 1,825 x the daily maximum benefit. In case the insured dies before the age of 65, the insured’s beneficiary receives benefit equal to the premium payments, but less any benefits. After the age of 65, the death benefit under the plan is reduced by 20% each year till the age of 70.

Alzheimer’s Disease Is Covered By Long Term Care Insurance

It is a notion that Alzheimer’s disease is not covered by long-term care insurance policies. This isn’t true as almost all long term care insurance plan covers care needed by an individual with Alzheimer’s disease, as long as it was diagnosed after the coverage is in effect. Those having Alzheimer’s disease at the time of application do not get any benefits.

To keep up with inflation, most long-term care polices offer two different types of inflation protection options. One may pay an initial high premium, where the benefit is automatically increased every year at a certain percentage while the premium is the same. This is called automatic inflation feature. In the second option, one can decide periodically, maybe every year or other year, whether or not to increase the benefits at an additional cost. This is called periodic inflation offer.