Long Term Care Insurance
Long term care insurance is for people who need long term medical care. This is care that extends beyond a simple stay in the hospital. It’s often used by elderly people who have severe healthcare needs. An employer might provide this as a benefit or a person can get an individual policy. It’s actually more common for a person to buy their own policy.
Just about anyone can qualify to get long term care insurance. Being in good health and having the ability to pay premiums are the sole prerequisites. If you’re already sick, then you might have a tough time getting coverage. However, now that “Obamacare” is in place, it might be easier for ill people to get coverage.
In order to benefit from the policy, the policyholder has to have certain disabling factors. There are certain requirements to me. In order to get a payout, you will have to pass certain tests. The insurance company might ask if you’re unable to eat, bathe, dress or move without help. You might have to answer yes to two or three before you can get a payout.
Other factor for receiving benefits is having a degenerative mental disease such as Alzheimer’s. You will have to prove that you have the disease. Confirmation from your doctor is usually sufficient.
The Importance of Long Term Care
Long term care insurance tends to be expensive. But if you need it, the benefits outweigh the cost. In 2010, the average cost for long term care was more than $80,000 a year for a private or semi-private room in a nursing home. These expenses are likely to increase, as healthcare expenses rarely get lower. Some people are unable to handle such an expense without the help of insurance.
Most people will need long term care if they live long enough. As of February 2015, 69% of those 65 and older will develop disabilities before they die. And it’s estimated that 35% will eventually enter a nursing home.
Long term care insurance is good to have. If you’re wealthy enough to pay out of pocket, then consider yourself lucky. For everyone else, help is often a necessity. Some insurance companies offer alternatives to this type of insurance. In those cases, it’s possible to combine long term care coverage with life insurance. This means the policyholder can benefit from long term care insurance even if they never have to use it.