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Long Term Care Insurance

Long term care insurance is a policy designed to assist an individual with the cost of care associated with a chronic illness or disability. Services typically covered under this type of policy include nursing home care, home health care, and assisted living or adult day care.

Employer-sponsored health insurance plans typically do not cover these types of extended services, although some employers may offer employees the option to purchase insurance for themselves or family members at a discounted rate. Because some of these employer group insurance plans don’t have underwriting requirements, a physical exam may not be necessary to purchase a policy. Oftentimes, an employee is able to take the policy with them after terminating employment with the company as long as the premiums continue to be paid. Long term insurance plans can also be purchased individually as well as through some service organizations.

Exclusions from coverage can include care for mental disorders or drug or alcohol abuse, and insurance companies will generally not issue policies at all to individuals with pre-existing conditions. Insurance companies will begin paying benefits after a policyholder has demonstrated need with at least two assisted daily living functions, or ADLs, such as dressing, preparing meals, or going to the bathroom. Long term care has policy limitations that restrict the dollar amount paid or number of years covered for certain types of benefits, such as $50 per day maximum for home health care service.

The cost of a care insurance policy is determined by factors such as the policyholder’s age, the maximum amount of services the policy will pay per day or over a set period of years, as well as any additional benefits that may be purchased by the policyholder. Because this type of insurance tends to be expensive, it’s important for an individual to consider many factors, including their personal needs as well as its affordability, before purchasing a policy. Although it may not be a suitable option for everyone, many people that have made the investment in care insurance have greatly benefited from the long-term care its coverage provides.

Exploring the Benefits of Long Term Care Insurance

Long term care insurance coverage is engineered to help an individual with the expense of care that comes with a chronic illness or disability. Services normally financially provided with these kinds of invaluable policies include home health and nursing care, assisted living and adult day care provision.

Who Benefits?
It is important to note that Employer-provided health insurance plans generally exclude these kinds of comprehensive and expensive services. That being said, some companies may offer their workers the choice in obtaining this coverage for themselves or their family members at rates that are significantly discounted. Due to the makeup of most employer group insurance plans and their usual lack of underwriting requirements, one may not even need to take a physical exam in order to qualify for purchasing such policy coverage. Often, an employee is even eligible to take the coverage with him or her should they leave the company and seek other employment. (He or she would simply be obligated to keep up on the premiums payments.) Long term insurance plans can also be bought on an individual basis through certain service non-profits.

Coverage Exclusions
Coverage exclusions will often include such elements as mental disorder care or long-term care for those suffering from drug or alcohol abuse. Insurance providers will generally not allow policies to be had for those with pre-existing conditions and companies will only begin providing claim benefits after a policyholder has shown the need for help with at least two ADLs (Assisted Daily Living functions). These include such things that many of us take for granted, like the need for help with dressing, meal preparation, or relieving one’s self, to name just a few. Most good long-term care insurance will have policy limitations that regulate the amount paid or how many years will be covered for certain kinds of policy provided benefits. An example would be a $75 per day cap for home health care services.

The Benefits
The cost of this type of insurance policy is figured by such factors as one’s age, the maximum number and level of services that are paid for per day, (or for a given number of years) and, of course, for the extra benefits that one may choose to add on for additional protection and coverage. Since this kind of insurance can be more expensive relatively speaking, it’s important for a potential policyholder to explore many factors, and this would include not just their personal requirements but their budget limitations prior to buying the policy. This coverage may not, at first, make sense for everyone, but many of those who have opted for this important coverage have seen their investment in long-term care pay off in a very big way. If you never need it, you’re fortunate. If you do need it someday, it can be a virtual life-saver.