Long–term care insurance is one of the most misunderstood and misused types of life insurance available. Many people don’t understand what it is, how it works, or even if they need it.
This misunderstanding has led to many problems for those who purchase the coverage without a good understanding of what they are getting themselves into.
The purpose of this article is to help you understand long–term care insurance and why you might want to consider purchasing some sort of coverage for yourself or your loved ones.
You will learn about the various types of long–term health care insurance policies available today, how they work, what benefits they offer, and how much you can expect to pay in premiums each month.
What are Long-Term Care Insurances?
Long-term care insurance is a type of life insurance that helps people who are aging or who have become ill. By offering them a life insurance policy that will cover the cost of personal care services, these individuals stand to save money.
Age and illness lead to the need for help with everyday tasks like dressing, bathing, and preparing food for oneself. As a result, long-term caregivers provide the care that aging and disabled people can’t do themselves.
Hybrid Insurance
Hybrid life insurance covers long-term care needs.
The main thing that differs it from traditional long-term care insurance is that it also includes a death benefit.
While long-term care payments usually reduce the death benefit, a hybrid policy will still set aside a minimum death benefit. This death benefit will be handed over to the relevant beneficiaries in the event of your death.
This policy benefit also includes a cash benefit in the form of cash value. This means the cash value gained from the hybrid policy can be treated like any other cash value withdrawals.
However, hybrid life insurance generally cost more than traditional long-term care insurance.
Who Needs Long-Term Care Insurance?
Over half of people over the age of 65 will need long-term care during the remainder of their lifetime. For seniors, it’s good to prepare ahead with a long-term care policy, even if the individual is healthy. Health status can change and accidents can happen. It’s much better to have a plan in mind than to leave children and loved one’s responsible for handling the costs associated with the care needed.
It’s not wise to depend on Medicare for long-term care needs, because the program may not cover everything needed. Many care providers don’t accept government-run life insurance policies. It’s good to have a backup plan in case healthcare becomes difficult to find under Medicare-only providers.
It’s unpleasant to think about the possibility of needing long-term care as you age or if you become injured or sick. However, taking care of these needs before they have the opportunity to present a financial burden is in everyone’s best interest. Feel free to shop around for options before making a decision.
How Much Do Long-Term Care Insurances Cost?
Long-term care premiums can vary from one provider to another. If you’re considering purchasing a policy, it’s a good idea to check with several different providers to see what their rates are.
You should also consider the length of time you will need coverage and how much money you have available to pay for it. If you plan on purchasing this type of coverage for your loved ones, make sure they understand that you’re going to be helping them financially in the future if they need care.
These premium costs may vary, depending on the premiums you choose. The potential cost will also depend on your gender, age, marital status, location, and current personal and familial health history.
Generally, though, the average cost of a long-term care insurance is approximately $1,700 per year for a 55-year old man with a three-year policy, with an average lifetime cost of $172,000
How to Get Long-Term Care Insurance
You can purchase this life insurance from many different companies. These companies may offer health insurance policies for both individuals and families. You may also be able to get long–term care coverage through your employer or a benefits package offered by your spouse’s employer.
If you need help in finding this life insurance, talk to a local financial advisor or an agent at a life insurance company that specializes in these types of policies. This person can help you understand the various options available and how they work.
If you’re unable to find an agent near you, consider using the Internet to search for reputable companies offering this type of coverage. Many websites provide reviews and ratings on different providers that can help consumers make informed decisions about which company is right for them.
Final Thoughts
As mentioned above, long–term care insurance is not something that everyone needs. Some people choose to use their life insurance as a way of money management if they don’t have any other type of coverage, or they don’t want the hassle of having two separate health insurance policies in place.
However, if you’re considering purchasing this type of life insurance, you should take the time to learn about it and understand what it can do for you. You can also consult an insurance agent or a financial planner to make sure you get the best bang for your buck.
Having a financial planner and taking the time to think this through will help you make an informed decision about whether or not this type of coverage is right for your money management and your family.
This is why some people turn to long–term care insurance. We can never predict when someone may fall to a chronic illness or suffer a debilitating injury, such as heart attacks and strokes.
We can, however, predict that they will need help with these tasks in the future. Some people invest part of their retirement savings to a long-term care insurance for this purpose exactly.
This is because l
ong–term care insurance provides a way to cover these expenses in the event that they become necessary. So, if you are someone who is aging or has an illness, you may want to consider purchasing some sort of long–term care insurance policy.
The life insurance offers lifetime benefits that
help individuals take care of these needs financially. Ordinarily, long-term care is quite expensive. In fact, the medical expenses are often too high to cover without some sort of life insurance policy that takes care of some of the cost.
Generally, a life insurance company can offer the following long-term health care benefits:
Nursing Home
Nursing home stays provide a lot of medical care for patients who need it, but they also have an extensive amount of physical work that needs to be done around the facility.
These activities can include preparing meals, cleaning, and bathing as well as helping people with daily tasks like getting dressed or using the bathroom. If you’re unable to perform any of these activities yourself, a nursing facility might be able to help out financially.
This type of care benefits pay for nursing home costs and other similar facilities that provide skilled nursing care. You may be required to pay a premium each month towards this type of coverage depending on your income level.
Assisted Living
Assisted living facilities offer a safe and supervised environment for older adults to live in while they continue to receive medical care. Many of these facilities are also equipped with nursing care services that help keep individuals healthy and strong.
Assisted living insurance covers costs associated with the daily needs of a person in his or her own home. It is designed to cover the expenses related to meals, lodging, and personal care for a senior who no longer lives alone.
These types of policies typically pay for medical expenses and supplies that are used in these areas.
Home Health Care
Home health care services are designed to help older adults live at home while they receive medical care and other long-term care services.
Home health care workers provide assistance with tasks like dressing, bathing, and preparing meals for the individual. They also help in performing other daily activities that might be difficult for an older adult to do alone.
Some of these tasks include managing medications, communicating with doctors and other medical professionals, as well as performing other housekeeping duties around the home.
In addition to providing assistance with these activities, home health care workers may also provide companionship or emotional support to the individual in his or her own home.
These types of policies can cover all costs associated with your healthcare needs and those of your loved ones in their own homes. You’ll need to pay a monthly or an annual premium towards this type of coverage depending on your income level.
The Types of Long-Term Care Insurances
There are several different types of long-term care services available today.
If you’re interested in purchasing this kind of life insurance coverage, you should understand the differences between these various types of policies so you can make an informed decision about which one is right for you and your family.
Generally, the long-term care insurance policy can be divided into two types: the traditional type and the hybrid type.
Traditional Insurance
Traditional long-term care life insurance is a standalone life insurance policy that works in the same way many other policies do. The insured makes monthly premium payments in exchange for coverage. Should the individual need long-term care, the policy covers most of the expenses.
Hybrid Insurance
Hybrid life insurance covers long-term care needs.
The main thing that differs it from traditional long-term care insurance is that it also includes a death benefit.
While long-term care payments usually reduce the death benefit, a hybrid policy will still set aside a minimum death benefit. This death benefit will be handed over to the relevant beneficiaries in the event of your death.
This policy benefit also includes a cash benefit in the form of cash value. This means the cash value gained from the hybrid policy can be treated like any other cash value withdrawals.
However, hybrid life insurance generally cost more than traditional long-term care insurance.
Who Needs Long-Term Care Insurance?
Over half of people over the age of 65 will need long-term care during the remainder of their lifetime. For seniors, it’s good to prepare ahead with a long-term care policy, even if the individual is healthy. Health status can change and accidents can happen. It’s much better to have a plan in mind than to leave children and loved one’s responsible for handling the costs associated with the care needed.
It’s not wise to depend on Medicare for long-term care needs, because the program may not cover everything needed. Many care providers don’t accept government-run life insurance policies. It’s good to have a backup plan in case healthcare becomes difficult to find under Medicare-only providers.
It’s unpleasant to think about the possibility of needing long-term care as you age or if you become injured or sick. However, taking care of these needs before they have the opportunity to present a financial burden is in everyone’s best interest. Feel free to shop around for options before making a decision.
How Much Do Long-Term Care Insurances Cost?
Long-term care premiums can vary from one provider to another. If you’re considering purchasing a policy, it’s a good idea to check with several different providers to see what their rates are.
You should also consider the length of time you will need coverage and how much money you have available to pay for it. If you plan on purchasing this type of coverage for your loved ones, make sure they understand that you’re going to be helping them financially in the future if they need care.
These premium costs may vary, depending on the premiums you choose. The potential cost will also depend on your gender, age, marital status, location, and current personal and familial health history.
Generally, though, the average cost of a long-term care insurance is approximately $1,700 per year for a 55-year old man with a three-year policy, with an average lifetime cost of $172,000
How to Get Long-Term Care Insurance
You can purchase this life insurance from many different companies. These companies may offer health insurance policies for both individuals and families. You may also be able to get long–term care coverage through your employer or a benefits package offered by your spouse’s employer.
If you need help in finding this life insurance, talk to a local financial advisor or an agent at a life insurance company that specializes in these types of policies. This person can help you understand the various options available and how they work.
If you’re unable to find an agent near you, consider using the Internet to search for reputable companies offering this type of coverage. Many websites provide reviews and ratings on different providers that can help consumers make informed decisions about which company is right for them.
Final Thoughts
As mentioned above, long–term care insurance is not something that everyone needs. Some people choose to use their life insurance as a way of money management if they don’t have any other type of coverage, or they don’t want the hassle of having two separate health insurance policies in place.
However, if you’re considering purchasing this type of life insurance, you should take the time to learn about it and understand what it can do for you. You can also consult an insurance agent or a financial planner to make sure you get the best bang for your buck.
Having a financial planner and taking the time to think this through will help you make an informed decision about whether or not this type of coverage is right for your money management and your family.
