Information On Long Term Care Insurance
Long term care insurance is a type of insurance that is getting increasingly popular in the United Kingdom and United States. As the name suggests, this form of insurance provides cover on long-term care expense of an individual that needs assistance with daily activities. Although this form of policy is availed by individuals who are on their way towards retirement, it is not restricted to a particular age group. This form of insurance policy is beneficial for people in their old age, as more than 60% of individuals that are above the age of 65 require some form of long term care and assisted living. Through Long term care insurance, individuals that are unable to perform daily activities can get assistance in activities such as bathing, eating, dressing, continence, toileting, walking, and being transferred from a chair to a bed.
Long term care insurance ensures that you and your loved ones are protected in the event that you need extended health care during your lifetime. This type of insurance is popular with individuals that do not have children for support and individuals who want to be independent when they get old. Without Long term insurance cover the expenses on services for daily assisted living can exhaust the savings of an individual. A long- term care insurance policy makes sure that all the ADLs (activities of daily living) are compensated by the insurance company. Some employers may provide long-term care insurance free to their employees while others may keep it as an optional policy that can be availed by employees by paying substantially low premiums.
Premiums paid on long-term care insurance may be included under the norms of income tax deduction. Areas covered by long term care insurance are Alzheimer's care provision, adult daycare, assisted living, homecare, nursing, hospice care, and respite care. In accordance with the terms of the maximum benefits of a policy long-term care insurance, the insurance company provides immediate assistance beginning from the first day. Individuals that avail of long-term care insurance maximum benefit policies are compensated for assisted care 24 hours a day, every day of the week. The insurance company pays for private nurse, caregiver, therapist, housekeeper, and companion, in accordance with the terms of the policy.
It is important that you scrutinize your options carefully before availing of long-term care insurance. There is a certain degree of complexity in deciding whether to opt for a (NTQ) Non-tax qualified policy or a (TQ) Tax qualified policy. Tax qualified policies are availed by most individuals as the benefits pertaining to this policy are not taxable, unlike a non-tax qualified policy where the individual may get a tax bill that is unimaginably large for the benefits provided. Both tax qualified and non-tax qualified policies have their pros and cons. It is recommended that individuals seek help and counsel from experts in this field in regard to pricing, tax deductions, and the limits of the policy. Make sure you get all the details coverage before you avail of a long-term care insurance policy. This is crucial because you don't want to get stuck with a policy that won't guarantee immediate relief when financial help is required.