South Dakota Long Term Care Insurance
South Dakota long term care insurance may seem foreign to you. It is not as common as auto insurance or health insurance, but it is important nonetheless. As you age it becomes more important to protect your finances and to relieve the burden of caring for you from your family. You should know the basics of South Dakota long term care insurance before you begin shopping and certainly before you make a purchase. Read on to get an overview of some of the elements of a long term care insurance policy.
South Dakota Long Term Care Insurance Activities of Daily LivingActivities of daily living are those activities that must be done each day as a part of everyday living. If you cannot do them on your own, you will need either assistance from family and friends or professional help. Your South Dakota long term care insurance policy will be triggered by the number of activities of daily living that you cannot perform. These activities include:
These are the six major activities of daily living used by insurance companies to determine the need for long term care. Most policies are triggered when you are unable to perform two of these activities without assistance. At this point, the waiting period of your policy will begin.
South Dakota Long Term Care Insurance Waiting PeriodThe waiting period on your South Dakota long term care insurance policy is the time between the need for long term care being established and the time at which benefits are paid. You will have to pay for your entire long term care expenses during this time, so keep this in mind when determining the waiting period for your policy. It may be possible to have no waiting period, though the most common are 60 and 90 day waiting periods. There is a delicate financial balance with the waiting period; the longer the waiting period, the lower your premiums, but also the more out-of-pocket expense.
South Dakota Long Term Care Insurance Daily BenefitThe daily benefit is how much your policy will pay out each day for long term care benefits. This can vary greatly and, of course, the higher the daily benefit, the more costly the insurance. Currently, the most popular daily benefit is $150 per day. To determine the right daily benefit for your policy, you must research the average cost of a nursing home stay per day in your area. Nursing home care will be the most expensive type of long term care and thus should be your maximum yardstick. Because long term care services are becoming much more expensive, it is recommended that you also purchase inflation protection as a rider on your policy. This will increase your daily benefit each year by a certain percentage to account for rising costs. It may be 10 years or more before you have to use your South Dakota long term care insurance and you want the daily benefit you have chosen to still be adequate.
South Dakota Long Term Care Insurance Benefit PeriodThe benefit period is how long your South Dakota long term care insurance policy will pay benefits. The benefit period you choose should fit your sex. Women, because they live longer, tend to need a longer benefit period. The average long term care services required for a woman is 3.7 years, while it is only 2.2 years for a man. Only about five percent of individuals require long term care for six years or more. If you are okay with the premiums, a five year benefit period is recommended. It gives you some leeway, but doesn't force your premiums too high.
Shopping for South Dakota Long Term Care InsuranceLuckily, you have many options when it comes to buying South Dakota long term care insurance. You can find the cheapest rate possible by shopping around. Just as fortunately, you can shop from the comfort of your own home and without having to make numerous phone calls. The internet allows you to shop for long term care insurance in little time, with no hassles and to do so for free. Take 15 to 20 minutes and gather about five South Dakota long term care insurance rate quotes. You can use these quotes to compare the prices from the various competing companies and choose the rate that fits into your budget. |
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