What exactly is Long-Term Care Insurance?
Whether a business owner purchases it to offer an useful employee benefit, or an individual utilizes it to protect an elderly parent, long-term care insurance (LTC) is coverage designed to help pay for prolonged medical and non-medical services that would otherwise be paid out-of-pocket. In 2007, 8 million Americans were secured with LTC, with $3. 5 billion in long-term care promises paid, according to the American Association for Long-Term Care Insurance (AALTCI).
While some LTC insurance plans cover nursing home care, other plans provide protection for a range of services including care in an adult day care center, assisted living, and formal or casual in-home care. LTC insurance plans pay benefits to you and anyone else you designate, such as a spouse, parent, or even child. Depending on the policy, it will either pay a fixed amount or pay you for services provided.
Should i Need It?
Similar to homeowners, health, and auto insurance, LTC insurance helps guard you, your loved ones, and your assets. For the elderly person falls ill and lacks insurance, the burden to pay for medical care often falls on family members — and that cost can be substantial.
Considering the emotional struggles that result each time a loved one requires this type of care, the last thing you’ll want to think about is a steep financial burden as well, and LTC insurance plans help you avoid this added tension.
How Does It Differ From Disability Insurance coverage and Health Insurance?
Medical insurance and impairment insurance do not protect you and your family in the same manner that long-term care insurance really does. In fact , health insurance plans typically protect only 30 days of recuperative period, whereas LTC insurance plans often cover two years or more.
Although disability insurance plan replaces your salary in the event of a personal injury, it fails to cover ongoing medical care. Medicare is even more restrictive, reimbursing you on average only 28 times, with a maximum of 100 days.
How Much Does It Cost?
Premiums vary, based on your age and health conditions when you purchase the policy, as well as the amount of coverage you desire. Although the cost of care in nursing homes and assisted living facilities differs from state to state, the average yearly cost of the nursing home in 2010 reached $80, 850, according to Long Term Care Insurance policy Tree.
This represents a significant cost for many families, so it’s best to prepare yourself. Purchasing LTC insurance at a more youthful age is a smart idea, considering that you are likely to be healthier and receive a reduce premium. However , the AALTCI reported that only 33 percent of Americans who apply for this type of insurance policy apply at the age of 55 or youthful.
Coping with a parent, spouse, or child’s illness is never easy, but long-term care insurance will help protect you and your family.
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Contact your impartial insurance agent to find the best policy for your family’s specific needs.