There’s health insurance to pay for medical treatment and hospitalization, but is there insurance coverage for specific health problems of senior citizens? There is and it’s long term care insurance (LTCI).
There’s health insurance to pay for medical treatment and hospitalization, but is there insurance coverage for specific health problems of senior citizens? There is and it’s long term care insurance (LTCI).
Long term care insurance helps pay for long term care services so baby boomers can deal with the hardships that come with old age without worrying about paying for care.
Early preparation is necessary and part of long term care planning is to determine how you will pay for long term care. You can learn more about LTCI by asking the basic questions.
Here are common questions about the basics of LTCI:
1. “Why do I need long term care insurance?”
With the increasing cost of health care, it is necessary that you purchase long term care insurance to prevent future financial problems with paying for care.
Using your savings to pay for LTC can easily drain your assets, leaving your loved ones or beneficiaries with no legacy.
2. “How much do LTCI policies cost nowadays?”
LTC insurance costs vary. There are several factors that affect insurance premium:
• Age
• Current health condition
• Location
• Type of coverage
Some companies offer discounts for couples who buy a shared or joint policy. Be sure to ask insurance companies if they offer policy packages. Visit insurance company websites and ask for your free quote.
3. “When’s the best time to buy long term care insurance?”
When you decide to buy long term care insurance, you may want to start looking at major insurance companies. Research the financial ratings of your chosen companies. Check out rating websites such as A.M. Best, Standard and Poor’s, and others.
Most insurance experts recommend that you buy a policy in you late 40s or mid 50s. The younger you apply for a policy, the less you pay for premiums. The longer you live, the higher the possibility that you will require long term care assistance due to old age.
4. “Where can I buy long term care insurance?”
Here are options where you can buy LTCI:
• From most insurance companies or financial planners.
• By contacting your state’s Department of Insurance to learn more about the type of coverage available.
• Sometimes employers offer long-term care insurance to employees.
• Local, state or Federal governments offer group long-term care insurance to their employees.
• Check with your Human Resources department to see if your employer offers long-term care insurance.
5. “What are the benefits of owning LTCI?”
By owning a long term care insurance policy:
• You are protecting your assets from expensive LTC costs.
• You are preventing incidences where you use a family member’s personal time by having a personal caregiver.
• You can enjoy retirement since your long term care services will already be covered by your policy.
6. “How long does long term care insurance pay?”
Some policies can pay from two to five years, while other policies from different insurance companies can pay for as long as you live. However, policies with no limits are uncommon.
Long term care insurance is not a “one size fits all” kind of deal. You can customize your plan. Ask your insurance provider about your options. You can choose the number of years you want to be covered.
Right now, you may still not see the need for long term care insurance. However, to secure your future, you need to act ahead.
Learn more about the basics of long term care insurance by talking with a financial planner or doing online research.
References:
http://www.marketwatch.com/story/3-crucial-things-to-know-about-long-term-care-insurance-2014-11-08
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http://www.fpsinsurance.com/products/long-term-care-insurance/ http://www.investopedia.com/terms/l/ltcinsurance.asp |
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