Like any other kind of insurance, you can not get insurance for long term care after the need for it arises. However, long term care insurance is important to have if you have a need for it. This type of private insurance policy can help pay for many types of long-term care, including both skilled and non-skilled care, which costs can add up quickly, and is generally more than an average person can handle.
What does long term care insurance cover?
It is important to understand that long-term care insurance coverage can vary widely. Some policies may only cover nursing home care. Others may include coverage for a whole range of services like care in an adult day care center, assisted living, medical equipment, formal and informal home care, hospice care, etc.
What does long term care insurance cost?
Long-term care insurance premiums vary, depending on your age and health status when you buy the long-term care insurance policy and how much coverage you want.Your health will be a major factor in the cost of your premiums. You must be in generally good health to pass underwriting when purchasing a policy. For this reason, it may be better to buy long-term care insurance at a younger age when premiums are lower, but you must also realize that it does cost a lot, and if you do not have to have it, you could save a lot of money by not getting it. However, if your family has a history of needing long term care, then getting a policy is very important.
Why get long term care insurance?
If for some reason you feel the need for long term care insurance, such as a family history of debilitating illness, then you should certainly get it. The cost of care, especially in nursing homes and assisted living facilities, varies from state to state, but can sometimes cost over $100,000 a year. Because of the great cost, make sure that the long-term care insurance policy you buy will cover the costs of care where you plan to use it.
What other benefits are there of Long Term Care Insurance?
Most long-term care insurance policies offer certain tax benefits. These policies are called Tax-Qualified, or TQ, policies. Depending on your age, you can include some, or all, of the premium for a TQ policy as a medical deduction on your Federal income tax form if you itemize your deductions. Also, should your policy be like an investment where you receive dividends, when you receive payments from a Tax-Qualified policy, you generally don’t have to pay Federal tax on them.
Where do you get long term care insurance?
Most people get their general insurance through their work. However, most companies do not provide long term care insurance. However, private insurance companies sell long-term care insurance policies. You can buy them from an insurance agent or through the mail, or internet. Or, if provided you may be able to buy a group policy through an employer or through membership in an association.
Government programs such as Medicaid and Medicare do not generally cover long term care. Buying a long-term care insurance policy is an important decision. Make sure that you buy from a reliable company. Insurance companies must be licensed by your State to sell long-term care insurance, you do not want to be scammed. It is best to go through a nationally known company for this particular type of coverage, even if their rates are slightly higher, the peace of mind in knowing that you chose a company that is for real, and will provide for you should you require long term care.