Services beyond regular medical care that are extended to people suffering from chronic illness or disabilities are referred to as long term care. Though these people cannot be called sick in the real sense, they do not have the ability to perform regular activities like walking, dressing, eating, bathing and others.
Insurance for long term care helps in covering costs of these services which are actually very expensive. The long term care health insurance plans gives the plan holder the freedom of deciding the kind of long term services they would prefer and from where.
Regular Health insurance Plans don’t cover long term care
While the fact that people live for longer these days is good news, the downside to it is that they will be at a higher risk grievous health ailments as they age. Unfortunately, the regular health plans do not cover the costs for long term illnesses. A federal health program called Medicaid will cover costs incurred due to long term care only after you have exhausted all your savings and assets towards availing this care.
Long Term Care Insurance Coverage
The costs covered by long term care insurance are as follows:
- Nurses who visit the patient to assist in activities like bathing, cleaning, eating and dressing.
- Nursing home care
- Adult day care community programs
- Care provided in a particular residential setting which are termed as assisted living services that include help with routine activities, meals and health monitoring.
Suitable time to buy long term health care plan
A majority of the people do not think about this plan until they reach their 70s or 80s when their health begins to give way. And with the health care providers having age restrictions and with your pre-existing condition availing this plan will be almost improbable. The premiums can burn a hole in your pocket even if you qualify.
The right time to opt for this plan, while keeping the premiums affordable, is in your middle age when you are likely to be stronger.
Should I opt for long term care policy?
While this policy might not be for all, it is worth investing in one considering the possibilities of ever increasing medical costs, age restrictions by healthcare providers and depleting into one’s retirement savings. In addition to having the freedom of where and how to receive long term care, your objective should also be to safeguard your assets and prevent depending on other members of your family.
Remember that the cost for this plan is high. The premium will be in the range of $2000 to $3000 for covering nursing care costs for a person aged 65 who is in good shape. Hence, if you are opting for this policy at the cost of compromising on your needs and standard of living, then, think again.
Critical Parameters
- Coverage: There are multiple coverage options you can opt for when you purchase the long term care plan. You can get coverage for just home and nursing care or go in for a plan that will offer higher coverage. You can also get the plan to covers costs for your family member or friend who can take care of you.
- Benefit Period: This is the duration of the period for which you can avail the benefits. You can opt for the plan to cover your costs for two to six years or even for the rest of your life.
- Monthly or Daily Benefits: This is the maximum amount that will be paid by the plan provider either on a monthly or daily basis. If cost of care exceeds this cost, you will have to foot the remaining amount.
- Waiting Period or Elimination: This period that can be in the range on 0-100 days is the time when the insurance company will not cover the costs. You will need to pay for the entire amount.
- Protection against inflation: Since inflation adds to increasing costs annually, the insurance companies have to offer protection against it. There are two options you can choose from. While one offers you the right to enhance coverage at a later time, the other automatically covers the increased costs.
- Non forfeiture benefit: Insurance plans with this option will cover costs despite non-payment of premiums. The premium will be covered in the range of 10%-100%.
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