The real question is not actually who needs long term care insurance, but when do I need long term care insurance? Obtaining this type of insurance policy is recommended to be done prior to age 60. As many baby-boomers approach retirement, more publicity is given to this issue. Devastating illnesses like Alzheimer’s can quickly drain personal assets and leave the patient dependent upon public or government programs, and those programs may not provide adequate care. Often public insurance programs require a spend-down of personal assets before care will be provided.
What Does Long Term Care Insurance Cover?
Long term care insurance is insurance that pays for care that is not normally included in other health insurance, or programs like Medicare and Medicaid. The care that is needed is personal and very basic, such as ordinary daily activities like getting dressed, bathing, eating, mobility and other personal hygiene needs. Care may be in the home or at an outside facility. Common care centers include adult daycare, assisted living facilities, nursing homes, Alzheimer’s facilities, and special care help of respite and hospice services. Many who require this intensive care are younger adults under the age of 64. Most persons this young have not yet begun to think about acquiring long term care insurance, but once ill, this insurance becomes unavailable.
At What Age Should Long Term Care Insurance Be Purchased?
Older adults are encouraged to act before they turn 60 years of age to obtain an affordable insurance policy that covers long term care. Statistically, about 69% of persons older than 65 will sometime need long term care, according to figures published by the American Association of Home and Services for the Aging. The major problem with long term care is the great expense involved. Even if the care is home care, assistance may be required 24/7, and that becomes outrageously expensive. Even younger adults should consider buying long term care insurance because they are subject to disease and accidental injuries that could result in long term or chronic illnesses that might later cause denial of such coverage. Premium rates are much lower for younger persons than for those who are above age 60.
What Is Important to Include in a Long Term Care Insurance Policy?
Items that are important to discuss with your insurance agent include the actual coverage, inflation protection, and deductible amounts. Keeping premiums stable over time, or having a limit to possible increases is important. Long term care costs will undoubtedly always go up over time, along with inflation. Deductibles amount to out-of-pocket expenses you must pay before the insurance will start to pay for care. Find out what limitations are involved, such as a total or daily payment limit. Total coverage amount is important as it may affect the type of care you can afford, at home or in a care facility. Finally, know how long this insurance coverage will last, and if additional coverage will add to premium charges.
When Should Long Term Care Insurance Be Purchased?
Costs for premiums are lower when the insured is younger. Insurance is based on risk, and there is greater risk of illness, injury or disease as a person gets older. Rates, depending upon age of the insured and coverage amount, may run from about $75 to $250 per month. Locking in a premium rate is advised, and once in effect the premium cannot be raised, nor the insurance canceled unless payments are not made. Long term care insurance should be purchased as soon as possible and preferably before age 60. It is an important option for health care that will be needed by most persons sometime during their lifetime.
