Understanding Long Term Care Insurance

Posted in Long term care insurance by Pat Tarantino

The following article was written and provided by Lindsay Engle of MedicareFAQ.  MedicareFAQ is an online resource center that helps individuals learn more about their Medicare options, as well as supplemental Medicare plans.  Visitors can compare different plans side-by-side in order to find the best plan for their needs.

Long term care insurance is a type of insurance designed to cover the long-term service and support required by an individual in any number of settings, from a community organization to the individual’s home.  This type of care is meant to provide for services that aren’t necessarily covered by standard health insurance.  Anyone considering signing up for long term care should understand more about what this policy is before making such an important decision. 

Cost of Long Term Care

The cost of long term care insurance depends on several different factors.  The factors that go into this cost include:

• Your age when purchasing the policy
• The maximum amount of money that the policy covers per day
• The maximum amount of days and years that the policy will cover
• Additional benefits chosen by you to add to the benefits automatically included with the selected policy

It’s possible for some people who are already in poor health to not qualify for a long term care insurance policy.  This also applies to anyone already receiving some form of long term care.  If this occurs, consider Medigap plans in NY to cover some of the costs not covered by Medicare.

When to Purchase a Long Term Care Policy

When selecting any insurance policy, there are some things that you’re going to want to keep in mind pertaining to the best time to purchase a policy.  When you’re considering long term care insurance, you’ll want to base much of this decision around the fact that you won’t be able to purchase this form of insurance once you’ve become sick or generally unhealthy.  Because of this stipulation, you’ll want to act sooner rather than later.  The very best age to apply for this insurance policy is when you’re in your mid-50’s.  Here’s why this is the case –

As you age, your health changes.  These changes basically mean that the results of your exercise and healthy eating will diminish slightly, especially as you reach your 50’s.  You never know when your health could change for the worse.  In fact, it could happen before you reach your mid 50’s.  However, this time period is basically right before any substantial changes tend to take place, making it much more likely that your application for long term care insurance will be accepted.

If you’re in good health when you apply, most insurers will actually offer discounts for you to make use of.  Once the policy has started, these discounts don’t disappear when your health begins to deteriorate.  It’s also important to know that costs will increase as you age, even if you’re in good health.  This is why it’s recommended to purchase a policy when you’re in your 50’s.

Before you inquire about long term care insurance for yourself or a loved one, it’s also important to consider Medicare supplement plans NY.  These plans are commonly referred to as Medigap plans and are designed to provide you with additional health insurance that covers certain health care costs not covered by standard Medicare plans.  Medigap plans in NY extend to deductibles, co-payments, and health care in the event that you travel outside of the United States.  While these Medicare supplement plans NY don’t cover long term care, they are a nice addition to any Medicare or long term care insurance plan that you have.

Knowing Policy Provisions

When you’re considering a long term care insurance policy, it’s essential that you understand the many provisions that come with policies like these.  While some provisions and features can change depending on the specific policy you select, there are some that remain consistent throughout all policies.  For instance, the period you keep your benefits can range anywhere from two years to a lifetime.  The lower the amount of years that you select with your plan, the lower the costs.

The policy begins paying the benefits you receive under a number of conditions. These include:

• Not being able to perform two to three daily activities without receiving help. This can include everything from dressing and eating to bathing
• Having medical needs that make long term care a necessity
• Suffering from cognitive impairment

Some additional provisions that you should be aware of include:

• A waiver of the premium you pay once you start receiving benefits
• A guarantee that the policy will be renewed immediately whenever necessary
• Notification to a third party, oftentimes a relative, in the event that you forget to pay your premium
• A restoration of benefits if you receive benefits, go without benefits for six months, and then require these benefits once again

Other Life Insurance Options or Alternatives

Many people choose to purchase other life insurance policies as an alternative to long term care or in combination with such a policy.  There are two basic forms of life insurance that you can purchase, including term life insurance and whole life insurance.  Term insurance pays out in the event that your death occurs within the time period set by the policy, which can be anywhere from one to 30 years.  A whole life insurance policy pays out no matter when you die, even if you live into your 100’s. As this policy never ends, it tends to cost more.

Insurance Reimbursement Assistance Offered at SelectCare

SelectCare Home Care Services helps clients make the most of their long term care insurance through our insurance reimbursement assistance program.  Through this service, we participate in a three way call with prospective clients and their insurance provider to discuss the specific terms of their policy and strategize how a client can best use their benefits.

Once the service begins, we can send all invoices directly to the insurance provider, so clients don’t need to pay for services out of pocket and await reimbursement.  Thanks to this program, our clients can spend less time managing insurance paperwork and focus on what’s most important in their lives: living happily and healthily in the comfort of their long-term home.

To learn more about SelectCare and how we can help you or a loved one make the most of their long term care insurance, call us today or request a free home health care guide.

To learn more about MedicareFAQ and how their insurance specialists can help you find the best Medicare and supplemental Medicare plans available in your area, visit their website today.