Long Term Care Insurance Explained
When most people think about long term care insurance the scene that comes to mind is an elderly person who can no longer live at home and has to enter a nursing home. This is only one of the benefits long term care insurance provides. Long term care is also not just for the elderly. Victims of accidents can be any age, and often require long term care during rehabilitation. Fewer than 60% of people who require long term care are elderly. Long term care also doesn’t just refer to nursing home care. Long term care is often provided in the patient’s home.
A long term care insurance policy can be purchased by an individual of any age. Premiums for a long term care policy are determined through an underwriting process that usually requires a physical exam. Once the individual is assigned a risk level, the premiums for the protection are set. The underwriting process is similar to life insurance where younger, healthier individuals receive coverage for a lower premium. Long term care policies typically are written for a set period of time. During this time the covered individual will not have to go through underwriting or a physical exam that may negatively affect the premiums. This allows young healthy individuals to lock in low premiums before health conditions may arise. Long term care policies that are paid in full retain benefits for the insured individual. How long the coverage lasts, and at what percentages, varies from company to company. Most long term care policies cover a set dollar amount per month for long term care expenses.
Long term care insurance is designed to allow a person to live where they want and still be able to get the care they need. Long term care policies cover expenses such as:
- In-home nursing care
- Household maintenance and upkeep
- Home health care accessories
- Assisted living facilities
- Adult day care
- Hospice facilities
- Nursing Homes
Many common services long term care insurance covers:
- Bathing and dressing
- Toileting and incontinence needs
- Managing pain and medications
- Preventing wandering and unsafe behavior
- Transportation to Doctors’ appointments
- Cooking meals and shopping
- Managing money and paying bills
- Maintaining the household and yard
- Personal grooming and hygiene
- Laundry and cleaning
- Physical or occupational therapy
Related topics: Workers Compensation Insurance, Health Insurance