More Gains in Long Term Care Insurance

Anybody who thinks long term care insurance (LTCI) is just version two of his health insurance has absolutely no idea what he is missing out on.

Many people seem to have boxed LTCI as an insurance coverage for one’s medical needs probably because of the word care, but the truth of the matter is that an LTCI policy is one big financial investment. An individual who is armed with this insurance product can leave his assets untouched even if an event in his life triggers the need for nursing home care, assisted living or in-home care among other types of long term care (LTC) services.

Unlike one’s health insurance which would normally provide coverage for short-term dental and vision care, discount on certain prescriptions, and doctor fees, an LTCI policy offers a wider coverage to individuals who are not capable of living independently because of a disability, chronic illness, or infirmity as a result of old age.

It has to be made clear to everyone that LTCI policies are not intended for sick people. It is exclusively for individuals who cannot perform any of or all the six ordinary activities of daily living (ADLs) such as eating, bathing, dressing, toileting, continence, and transferring due to functional limitations or/and cognitive impairment. So even if an individual has an LTCI policy it does not follow that he can use it every time he gets sick as the basis of insurance companies for determining one’s eligibility for his policy’s benefits is his inability to perform his ADLs.

Most insurers would require an insured individual to receive care for 90 days and he must be unable to perform at least two of his ADLs without help from others. After having accomplished this, a certificate from the insured’s doctor will state the health condition of the insured and the recommended plan of care.

Can Everybody Afford Long Term Care Insurance?

LTCI specialists say not everyone can afford to buy an LTCI policy because it is expensive. Those who have an annual income which is lower than $75,000 are actually discouraged from buying a policy.

However true, if you check the annual premium of a 45-year-old policyholder against the present cost of care you will find his annual premium rate more tolerable. Paying a premium of $850 every year is no doubt easier on the pocket than paying $77,745 for a year’s stay in a private nursing home room or a total of $36,000 for a home health aide.

Perhaps if one buys his policy at a younger age there is no reason for him to be financially challenged by the annual premium of his coverage. On the other hand, if he buys later at the age of 70 or 75 then he will likely go bankrupt.

LTCI promises a lot of benefits if one secures it early in his life. Apart from low premium, the insured will have total freedom to choose where he wants to receive care.

For a more detailed explanation about long term care insurance and to be able to receive quotes that are tailored to your needs, contact a licensed LTCI agent in your area.