Long Term Care Insurance


What is Long Term Care Insurance?

Traditional health insurance is where your health care coverage is for a specific service and support plan, and traditionally falls within a specific time frame with detailed limitations. Where this differs from Long Term Care Insurance, is that this is specifically designed to cover long term services and supports, including personal and custodial care in a variety of settings like your home, a community organization, or other facility. Long Term Care Insurance policies are designed to reimburse the policyholder a daily amount, up to a specific and pre-selected limit, for services to assist them with activities of daily routine as simple as personal hygine, dressing, or meals. As simple as these may be, your daily routine could be adequately hindered due to your specific circumstances and needs. As the policy holder, you are empowered to select any number of care options and benefits that will allow you to obtain the services you need, and where you need them. 

What does the cost of Long Term Care Insurance look like?

The cost of your Long Term Care Insurance Policy is based on the following:

  • your age at the time of purchasing your policy
  • the maximum amount that a policy will pay per day
  • the maximum number of days, or years, that the policy will pay
  • the maximum amount per day, multiplied by the number of days, which equals the lifetime maximum amount the policy will pay

It is important to note, that if you are currently in poor health or already receiving long term care services, you may not qualify for Long Term Care Insurance as most individual policies require medical underwriting. In some cases, you might be able to purchase a limited amount of coverage, or coverage at a higher "non-standard" rate. Some group policies do not require underwriting. 

Conclusion

You would be wise to be aware that many Long Term Care Insurance policies have intentional limits on how much, or how long, they will pay. While some policies will pay the cost of your long term care for two to five years, other insurance companies will offer policies that will pay your long term care costs for as long as you live - no matter what the costs actually accumulate to. However, the number of such agencies with the least amount of restrictions and limitations are very few and far between. Be sure to do your research as to what specifically is offered and the limitations attached to the services when determining which agency you will settle upon. 

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