Long-Term Care Insurance: All You Need To Know
Long-term care insurance is a type of insurance that offers protection to an individual on the expenses that arise when he/she needs long term care due to the inability to perform basic daily activities. All the services and assistance related to daily living that the individual needs are compensated by the insurance company in accordance with the terms of the policy. Most individual above the age of 65 need some type of long term assistance. Without a long-term care insurance policy, individuals will have to pay huge amounts from their personal savings on the services availed for daily assistance and care. The cost involved in providing long term care on a private nurse, caregiver, housekeeper, adult daycare specialist, or a therapist can be exceedingly high and clean up an individual's savings. Savings are extremely important in old age, with a long-term care insurance policy you can ensure that all your savings are intact as the insurance company compensates costs that arise from various services.
The different aspects covered by long-term care insurance are
- Home Nursing
- Rehabilitation
- Assisted living
- Respite Care
- Home Care
- Daycare
- Facilities for individuals with Alzheimer's
All the daily activities of the individual such as walking, bathing, shifting from the bed to chair, continence, toileting, and eating which are performed by skilled nurses, housekeepers, and caregivers are paid by the insurance company. The benefits this type of insurance has to offer can be availed in the event an individual has a cognitive impairment, or needs assistance, care, and help for day-to-day activities. Although long-term care insurance is preferred by individuals that are attaining the age of retirement, a lot of young individuals are purchasing this type of insurance to avail benefits.
Long-term care insurance provided by private companies is gaining steady momentum. Many business establishments, and firms have tie ups with insurance companies that provide their employees with long term care insurance coverage at discounted rates. The two types of long term care policies that are offered are (TQ) Tax qualified policies and (NTQ) Non-tax qualified policies. Although both types of policies offer substantial benefits, individuals prefer tax qualified policies as the benefits are non-taxable. There are different plans that can be availed under long-term care insurance. Individuals can avail of group plans or individual plans in accordance with their need.
The rates charged on coverage of long-term care insurance depend on the age of the individual, the duration of the benefits, health rating, and elimination period. If you are a couple make sure you opt for individual policies instead of group policies as most insurance companies offer discounts to couples on individual policies. As the risk of insurance on group policies is higher, the deductibles are high and the benefits few. Premium payout plans offered by companies are
- Monthly
- Quarterly
- Semi-Annual
- Annual
Make sure you choose the right type of policy in accordance with benefits that would be useful to you. Research on tax qualified policies and non-tax qualified policies, and benefits, are necessary to enable you to choose the right long-term-care insurance. This can equate to effective financial saving if you spend a little time researching before buying insurance.