Issues When Considering Long Term Care Insurance

You probably think of long-term care insurance, but you are not sure yet on where and how to start the plan. Long-term care insurance is surely the most expensive investment you will venture, so it’s important not to go over it hastily, or else you will lose chunks of money. Here are some of the most common issues or topics you’ll consider in buying your own long-term care insurance.

Should I buy LTC insurance when I’m older?

Survey shows that 43 percent of those people needing long term care are below the age 65. This spells your great need for this type of care, and everyone does.

Some companies come out with new policies every two years. The new policies have added features and benefits, but they are much more expensive as they contain those enhanced perks. According to studies, new applicants pay for about 5% each year than the applicants of the same age who have purchased previously. Just imagine how much the price would be ten years from now, as the increment rises to 5% or more every year. The future costs will no longer be tolerable for new applicants.

To qualify for long term care insurance you must meet the health requirements provided by your insurance company. The costs of LTC premiums are much lower for healthy individuals. If you wait for too long or get the insurance exactly the day you most likely need it, you may develop or have already developed conditions that would deny you for getting such coverage.

Also, the costs of coverage increase with age. You can get a policy at lower rates when you are younger, and expect it to get a bit pricier as you age. Buying a policy today can save you lots of money than buying the same coverage in the future.

Can I use my assets instead of insurance to cover the costs on long term care?

The same question applies when insuring a home or car: Why not self-insure on these investments? You may pay the costs directly from your assets and savings, but you may lose your hard-earned savings in return.

What’s the point of insuring your long term care needs?  The main purpose of buying insurance is to protect assets by allowing premiums to increase its value over time that could buy a benefit. Every two in three Americans will need long term care in the future; thus, the probability of getting long term care makes sense in buying such coverage.

Will Medicare pay for long term care?

Medicaid is a program primarily designed to serve the health care needs of low-income groups. Since there are underlying budget cuts in Medicaid, this program has complex qualification process to those who want to obtain long term care coverage. 

A person shall have $2,000 worth of cash assets, without a home, a car, and personal items. If a person qualifies for Medicaid, his or her assets may be subject for recovery to reimburse the expenses paid by Medicaid.

It’s not practical to rely on Medicaid alone, given the options that you may use for your long-term care needs. Securing yourself with LTC insurance removes the physical and mental stress that Medicaid can give. You may be able to choose your personalized setting based on your condition unlike with Medicaid that forces its recipients to stay in nursing facilities.