Nursing Home Insurance

There are different types of insurance available on the market nowadays, life insurance, long term insurance, disability insurance, nursing home insurance to name a few. Nursing home insurance is basically a predecessor of long term insurance which provides benefits when the insured is confined in a nursing home. Anyone can go in for this insurance, as one will never know when one may end up in a nursing home. Paying for the premiums may be a bit high, but in the untimely case of one ending in a nursing home without any insurance, the bills will turn out much higher!

Make sure to shop around before buying a policy

Before buying a nursing home policy, it is best to shop around for the best policy, as this coverage is relatively new and insurance companies are still figuring out the right premiums to charge for the benefits they offer! Different companies quote different benefits and costs.

The most vital coverage required in the policy is for skilled and intermediate care; and custodial care, if affordable. Make sure that the policy provides for at least six months to one year of coverage of stay in a nursing home. Some policies pay the same amount for both care; others pay less for intermediate care. A policy of $40-$50 daily for both skilled and intermediate care, sometimes quote an additional $300-$600 per month! Most of the policies begin to pay on the 1st or 21st day the patient is in the nursing home, following at least 3 days of hospitalization while some policies start paying on the 101st day! The earlier the benefits begin, the more expensive is the policy, but starting on the 101st day is too late as patients are usually discharged from skilled or intermediate care by then, and will thus never receive any benefit from the policy! Policyholders should decide how much they can afford, and accordingly buy a policy.

Most policies require a three day stay and as patients might not be in the hospital for more than 3 days, are reasonable. Opting for a policy with a higher stay requirement may lead to the policyholder not qualifying for nursing home insurance coverage. The annual premiums for long term care insurance vary greatly from $100 to $2,500, and depend on the age, health and policy benefits. Basically, the younger you are, the lower the premium; this is why most companies don’t sell policies to those over 79!

Carefully Read the Nursing Home Policy

By filling out the contact form available in the many insurance companies, one can avail a nursing home insurance policy. When buying a policy, it is very important to carefully read the policy, being aware of the type of home and level of care necessary to qualify for benefits. If there are any doubts on the policy, get them clarified! And remember, to file claims, it is very important to keep a copy of the nursing home bill for claims, and for your records!