What is long term care insurance?

Long-term care is day-to-day care that a patient (usually over age 65) receives in a nursing facility or in his or her residence following an illness or injury, or in old age.

The need for long-term care goes up gradually as a person ages and needs more assistance with daily living. For a portion of the population, long-term care insurance is a good idea. However, it should not cause financial hardship and force you to forego other financial needs. A long-term care insurance policy is only for people with significant assets that they want to preserve for family members or for those who want to assure independence and not burden family members with nursing home bills. One should not buy long-term care insurance if the only source of income is social security, or if paying utilities, food, or Medicare already stretches a budget.

Benefits of long term care insurance:

Comparing long-term care policies is difficult because many policies provide different levels of coverage. Most companies offer to pay a fixed price every day you receive care. Others offer to pay a percentage of the cost of services or a specific amount of money to cover the actual charges for care.

There are no standard benefits when it comes to long-term care insurance. So, be sure to always read the fine print on any policy. Generally, nursing home coverage pays for skilled custodial care. Some policies offer to pay for any care required, provided all eligible requirements are met. Some companies pay for care in your home but only if care is provided by RNs, licensed practical nurses, or licensed rehabilitation therapists. However, most will not pay for home health aides.

Benefits are usually described in terms of the amount the carrier will pay per day for care in a nursing home and varies from $75 - $250. Check around for what homes in your area are charging. Keep in mind, prices will increase by the time you need care.

Long-term care insurance allows you to choose the length of time you want to be covered. It ranges from one year to life. Obviously, the longer your coverage is for, the higher your premium will be.