Should You Consider Long Term Care Insurance?
Have you ever helped an elderly friend or family member secure nursing care? If so, you may already know how expensive good nursing care can be. Of course, the cost will vary by the type of care that is needed. A full time nursing care facility will be the most expensive. Assisted living may only cost half as much, and of course, part time home health care aids will be cheaper yet. On the other hand, we cannot always control or predict the type of care that will be needed.
Who Pays For Nursing Care?
Many people assume that Medicare, or a related health plan, will pay for nursing care. Actually, Medicare and other typical health plans only cover short term nursing care. One government program that covers nursing care is Medicaid. But in order to qualify for Medicaid, a patient may have to spend most of their savings. If the patient has not qualified for Medicaid, nursing care bills are his or her responsibility.
What about Long Term Care Insurance?
Long term care insurance (LTCi) is a form of health insurance that does cover long term nursing care. Today, many people have some incentives to consider buying this type of coverage. The IRS allows a deduction for a qualified plan. In addition, many states have instated something called long term care insurance partnerships. These partnerships ease the Medicaid qualification rules after the insurance benefits run out. Both of these government incentives may encourage more people to consider long term care insurance plans.
Why Isn’t Everybody Buying Long Term Care Insurance?
These plans have still not become popular parts of typical retirement plans. Even though most of us know that nursing care can be very expensive, and we realize that there is a good chance we may need this care, we still hesitate. Right now, the plans are not standardized, like for example, Medicare Advantage plans. It can be hard to understand the benefits and comparing different plans can seem like comparing apples to oranges. That may be one reason why more consumers have not signed up for nursing care insurance.
Another reason may be normal human nature. It is hard to pick up one more insurance policy, with one more premium, to cover something that seems a long way off. If you are a healthy 55 year old now, it can be difficult to want to buy a policy that covers something you may only need in 20 years, or that you may never need!
Are There Other Ways To Plan For Nursing Care Expenses?
Some people find some other ways to plan for possible nursing care expenses. Of course, the simplest solution would be to simply save a lot of money. However, some nursing care can eat up thousands of dollars a month, and that expense can eat up a nest egg pretty quickly. Some other insurance products, like life insurance and annuities, may be purchased with provisions that will pay benefits in the event the covered person needs nursing care. Getting another type of insurance contract to perform a double-duty function may be a better alternative for many middle class families.
How Can You Find Out More About Long Term Care Planning?
There is a lot of free information on the Internet about nursing care costs and coverage options. You may also want to sit down with a good retirement planner or insurance agent in order to explore your options. There is more than one way to plan for the cost of nursing care, but you should make a plan!
Learn more about the disadvantages and advantages of long term care insurance. Some research can help you make a good decision. Also, stop by for more information about affordable medical insurance over 55.