What Are The Pros and Cons
of Long Term Care Insurance?
Have you wondered about the pros and cons of long term care insurance?
It can seem unnecessary to think about whether or not you need long term care insurance coverage, but the time to make that decision is now, not when you are older. There are many things to consider when choosing a long term care health plan.
It's important to look at all the facts to make the best decision for your needs.
What Are The Pros Of
Long Term Care Insurance?
Long term care insurance (LTCI) can provide for many services and programs that your regular health insurance or Medicare just don't pay for. Non-medical services are covered by long term care insurance and it is these services that you may need the most. LTCI will allow you to receive services that help you with the everyday activities of your daily life.
There are many daily activities that many people eventually need help with. Things such as bathing, dressing, eating, and using the bathroom can become difficult for many elderly people to perform independently, especially when they are also dealing with a chronic illness or injury.
While it is difficult to think about no longer being able to do these things independently, LTCI can at least provide the comfort of knowing that there is a way to pay for such care if necessary. By having the extra care that can be provided with long term care insurance, you may be able to remain living at home or with family members much longer than you would without it.
An important consideration when making a decision about long term care is the type of policy you are considering. There are two basic types of policies: one is for facilities alone, such as a nursing home and the other is a comprehensive policy which will also cover expenses for assisted living facilities, adult day care, home care, hospice care and group homes. Be sure your policy has the coverage type that you desire. A facilities policy will certainly offer lower premiums, but the comprehensive policy will give you the widest range of options for your future.
What Are The Cons Of
Long Term Care Insurance?
Probably the biggest thing on the con side of the list of whether or not to buy long term care insurance is the cost. LTCI can be very expensive and you could pay premiums for years without ever receiving any benefits. In fact, if you are considering long term care insurance, you need to be sure you take out a policy well before you need the benefits. If you have a pre-existing condition, you may not be eligible for the policy.
Because long term care insurance pays for care in the event of a chronic illness or disabling injury, as well as conditions that accompany the later years of life, it is important to remember that you never know when you might need the coverage. Premiums on LTCI are less expensive if you are younger when you purchase your policy, but keep in mind that you may be paying those premiums for many years.
You must look at what your retirement income will be when you decide if you need a LTCI policy. As a general rule, the five percent rule is considered to be a safe guideline, meaning if your premium is five percent or less of your expected annual retirement income, then you can afford it. If it is more than that, it may not be affordable for you. If your retirement income is below $25,000 a year and your assets are less than $150,000 then Medicaid can cover the costs of your long term care once those resources have been used.
Find The Long Term Care
Insurance Policy You Need Today!
There are several pros and cons of long term care insurance and it is important to consider all of them when making the decision whether or not to purchase this type of coverage.
You can compare long term care insurance quotes side by side with our free long term care insurance quote finder located at the top of the page.
Just plug in your zipcode and begin finding the long term care insurance policy that you need today!
