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Long Term Care Insurance Types

admin — Fri, 06 May 2011 13:41:23 +0000

What Are The Types of Long Term Care Insurance?

Types of Long Term Care Insurance

One big problem with the world of long term care insurance is that it is very confusing. There is no standardized systems, as there is with Medicare supplements. This may be one reason why consumers hesitate to purchase a policy even though they are convinced there is a need.

Let us take a moment to take a quick look at the types of long term care insurance on the market today. Keep in mind, that different companies may have individual variations on these basic types. Also there may be some long term care insurance alternatives with different qualifications and benefits.

The Basics of Long Term Care Insurance

When we thing of LTCi, we think of coverage for home health care, adult daycare, assisted living facilities, respite care, hospices, nursing homes, and Alzheimer’s units. Some policies cover any type of qualified care, but some are very specific in the type of care that they cover. This makes matters a bit more complicated.

Also, remember that no policy will actually guarantee to fully cover all expenses. Some are adjusted for inflation, but there is no way to predict the costs of long term care services in the future.

Indemnity vs. Expense Incurred Policies

An indemnity policy covers your expenses up to a fixed amount per day. These policies may also have policy maximums, waiting periods, and deductibles. Obviously, the cost of the policy will vary by the amount of coverage you choose.

For example, let us say you purchase a policy that covers $150 a day, but your nursing home only charges $110. In this case, the policy will reimburse you for $150 until the policy maximum has been reached.

In contrast, an expense incurred policy will only cover actual expenses. So if you only spend $110 a day, the policy would only pay that amount. However, it will reserve the excess $40 against the policy maximum. So this may provide the benefit of being able to save on costs and extend coverage longer.

LTCi Daily Maximums

You may be able to select from a variety of daily maximums. This can range from $50 to $300 a day. This maximum may also vary depending upon what type of nursing care you need. If you only need a home health care worker to stop by for a couple of hours a day, you will not spend as much money than a person who needs 24/7 skilled nursing.

LTCi Elimination Periods

You can also choose from a variety of waiting (elimination) periods. This is the length of time that you will need to use nursing care before benefits start kicking in. These may range form a few weeks to a few months. The longer the waiting period, the higher your out of expenses will be. However, a longer elimination period will also lower your premiums.

How much do LTCi policies cost?

Long term care insurance costs will vary. This is true of most types of insurance policies, and it is also true of long term care insurance. Your age, coverage limits, and elimination period will affect rates. Your location can also matter as some areas have more expensive nursing services than others. You may imagine that a rural are would probably offer less expenses services than downtown Manhattan does. So, it will be important to shop for a policies on an individual basis.

Of course, insurance companies also vary, so you should take a little time to compare different companies. You can find online long term care insurance quotes that can help you compare plans and prices from your own computer. Our free insurance quotes online can make this task a lot easier!

Long Term Care Health Insurance and Health Reform

FinanceGuy — Fri, 16 Jul 2010 18:10:12 +0000

Health Reform: Long Term Care Insurance

Long Term Care Health Insurance

One thing that really surprises me, with all of the talk and debate about heath reform, is that there has been little discussion about new long term care insurance plans. Planning for nursing care should be considered by anybody who is doing retirement planning these days, and I think that a lot of people do not consider it because they just do not know how much it costs or figure some government plan already exists to take care of that concern.

Find Out How Much Long Term Care Insurance Costs - Compare Local Quotes For Free

Since long term care health insurance is a type of heath insurance, it has been included in the new health reform bill. However, what has been included is NOT comprehensive, and it will not remove the need to plan.

The details are not totally firm yet, but you can search for the CLASS act. It proposes a voluntary long term care insurance program that workers can opt out of. It has been devised to be self supporting, so it will not rely on any federal tax money.

What We Know About The CLASS Act

If the enrolled people pay the premiums, which are scheduled to be adjusted for lower income people, and they are in the program for a waiting period (5 years), it will pay $50 a day for nursing care. This care could be from a nursing home, assisted living facility, or at home health care.

As this plan has not yet been implemented, and as it also will require a waiting period, it will not provide any immediate relief for people who need nursing care. Also note that the plan is not just for senior citizens who are of Medicare age. Disabled people of any age who meet the other qualifications could use the plan benefits.

Do We Need To Worry About Long Term Care Insurance?

This will not totally remove your concerns. Even today, nursing homes can cost over $100 a day or more. So the new plan may pay half to a third of the total price tag. It should help remove some concerns, but it is not a total solution.

Many people assume that some federal program is already in place to take care of the rest. Understand that Medicare, the federal health insurance for disabled people and seniors, only covers SHORT TERM CARE. Medicaid, the US health insurance for low income people, forces people to spend down most of their assets to qualify. So there are some governement programs, but they are hardly perfect either.

Nursing Care Solutions

One common solution is long term care insurance (LTCi). There are even tax qualified plans that can be used as a tax deduction today. There are also LTCi alternatives like savings or annuities and life insurance with nursing care riders. The important thing is to learn about your options, and try to choose one that will provide security for you in the future and work with your budget today!

For more information, you might find this interesting: Pros and Cons of Long Term Care Insurance

Otherwise, we welcome any discussion in the comments!

Long Term Care Insurance Alternatives

admin — Fri, 26 Feb 2010 19:20:44 +0000

Should We Worry About Long Term Care Insurance?

Since the aging population of the US is growing, more people are concerned about long term care insurance. Though rates vary by age, health, location, etc., the cost of private long term care insurance can range from an average about $900 a year at 50 to almost $6,000 a year for a 75 year old. However, nursing home rates are also rising. Some reports peg the average anual cost of a nursing home at about $50,000 a year. So you can see how a long term stay in a nursing facility could, indeed, deplete a family’s resources rather quickly.

Medicare only pays for short term nursing care. Medicaid does pay for nursing home care, and in some cases, home health care. But you need to use Medicaid approved providers. You must also have a low income and few assets. So people purchase LTCI when they are concerned about depleting all of their financial assets if they do need long term care. This care averages about $50,000 a year these days.

But still, these premiums can be tough to justify for many lower and middle income people. LTCI premiums vary by age, health, and other factors, but can range from about $1,000 a year for a 50 year old to almost $6,000 a year for a 75 year old. It may makes sense when balanced against a $4,000 – $5,000 a month nursing home bill, but it is still a lot of money.

Long Term Care Insurance Alternatives

Besides Medicaid, you can come up with some other ways to plan for possible nursing or home health care costs. I found some suggestions for some other financial products that can serve double duty. In other words, your financil investment can protect more than one thing, and so they may be frugal choices.

Annuities with Long Term Care Riders – As you use a retirement annuity to guarantee income, some come with an additional rider that will allow them to pay for nursing care. These can work in different ways, so it is a good idea to compare different fixed annuities to find one that will work for you.

Life Insurance With Accelerate Death Benefits – Some policies come with riders that will pay out part, or all, of the death benefit in case of a termina illess or nursing home confinement. This means you can cover your life, but just in case you need it, that money can be used to provide care while you are still alive. You can quote over 50 life insurance.

Life Settlements for Seniors – Investors will purchase permanent policies from older people for some percentage of the death benefit. This all sound like a grim business, but it can actually benefit familis who need the money wreshile the insured person is still alive. Get more information and life settlement quotes here.

What Should You Do About Long Term Care Planning?

As with most other decisions, the right answer will be the one that works for you, and for your family. Take the time to research the suggestions and sit down with one, or more, retirement planners for their advice. In general, any decision you make will be much better for you, and your family, than having no plan at all!

Who Needs Long Term Care Insurance (LTCI)?

admin — Thu, 28 May 2009 13:29:16 +0000

Do We Need Long Term Care Insurance (LTCI)?

Well, we usually think about car, home, health, and life insurance, but planning for time in a nursing home seems distant and unattractive. However, with the good news that Americans are living longer comes greatly increased odds that at least half of us will require extended nursing care at some point in our lives.

What Does LTC Cover?

This care could be in a nursing home, assisted living facility, home health care, or even care by a family member. Nursing homes can cost $4,000 a month, or more. Even if a family member cares for you, there will be associated costs like time from work or travel. Either way, these expenses can eat up a lifetime of savings within months, and LTCI is a way to protect yourself, and your family, from this drain.

How Much Does Long Term Care Insurance Cost?

LTC policies differ, but some are flexible enough to cover any of those situations. A variety of waiting periods, maximums, and other features make the costs vary so much it would be impossible to give you the private long term care insurance cost in an article like this.

In addition, premiums are set by age and general health just like other types of health insurance. Note that some policies are tax qualified, which means that premiums can be deducted from income taxes. This could make the real cost of long term care insurance much less! In addition, some insurers offer big discounts for good health, good health habits, and even spouses!

Find Long Term Care Insurance Quotes For You!

You can, however, use the insurance quote forms on this page to find the top long term care insurance companies in your area, and also get information on a variety of plans and costs you could select from. The quote forms are fast, safe, and free, and you will not incur any obliation by using them.

Affordable Long Term Care Insurance Premiums

admin — Wed, 16 Apr 2008 04:09:57 +0000

According to MSN money, 42% of Americans who are 65 today will enter a nursing home during their lifetime. The current average annual cost of a one-year nursing-home stay is almost $50,000, and none of this cost is covered by Medicare, Medigap or private medical insurance. Women are especially vulnerable because they have a 50% greater chance of needing nursing-home care than men.

The premiums for long-term care insurance are expensive, but unless you have assets of $2 million or more, you are probably going to need it. If you don’t have it and experience a long term illness you may have liquidate other assets to pay for it. Premiums for long term health insurance vary based on your age, sex, geographical location and policy type, but annual costs can range from $400 a year for a 40-something male to more than $3,000 for a man or woman aged 70 or older.

Obviously, long term health care is not cheap and ideally you want to get it as early as possible when the premiums are lower and you are free from pre-existing conditions. But if you have to buy later rather than sooner there are still some ways you can save money.

Buy group coverage – Group coverage is cheaper than a comparable individual policy. If your employer offers long-term care insurance as an optional employee benefit considers taking the option. According to MSN money the employee can usually buy coverage for themselves, their spouse and their parents.

Extend your waiting or elimination period – This is the period of time you must wait for the benefits to kick in. Your choices are usually 30, 60 or 90 days. Choosing the 90 day option will reduce your premium costs significantly.

Shorten the coverage period – Don’t take the lifetime coverage but get a coverage period between three to five years. According to industry sources the average nursing home stay is approximately two and half years.

Take a lower daily benefit – Studies show the average annual cost of private nursing home care is approximately $150 per day. Choosing a lower amount can reduce your premium. You may have other income you can use to make up the difference.

Choose a joint policy – If you are married you can get a joint policy for you and your spouse. As mentioned above many companies offer this option.

long term care inurance, ltc

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