Is long term care insurance necessary since its primary purpose is to cover individuals who need assistance with daily living activities, for example, someone who is on bed rest, has dementia, or Alzheimer’s. However its secondary purpose is to protect ones life savings from the high costs of care associated with long term care. Premiums can range from a few thousand a year up to ten thousand or more for a couple needing to protect millions of dollars of assets. The premiums depend on the age, gender, health, and assets, and length of coverage needed by the individual(s).
The need for coverage depends on how you review the statistics and determine if its something you need and can fit into your retirement plan. Nationwide one out of every two people will likely need long term care services in their life time. But out of those who need it only a third will not meet the 90 day deductible period. But then again it all depends on your policy if that is the option you chose for your deductible. It can be 30, 60, 90 or more days. The most common is 90 days.
Since most health insurance plans do not cover the costs of long term care and since Medicare does not cover it most people will have to pay for it out of their own pocket. With costs exceeding $100 a day this can draw down their savings.
With out long term care insurance consumers rely on Medicaid, but this has limitations that most people are unaware of. The choice of facilities and services is limited along with who it covers. Individuals must be at or near the poverty level to qualify. So if you have any assets such as savings, a home, retirement must all be used to pay for care prior to Medicaid kicking in. This is extremely detrimental to middle income family’s who have to deplete their life savings if they want to qualify. Medicaid was designed for the poor and unfortunately those of us who have had to pay taxes our whole life reach retirement do not qualify if we have any assets. This is why Long Term Care Insurance is so valuable because it not only pays for your health care services, but it protects your assets.
Working with an experienced long term care insurance broker that represents several companies is necessary for individuals to compare multiple long term care insurance quotes. Additionally a broker must be able to explain the policy in a way that the common person can understand. The less confusing the easier it is to make a decision. LongTermCareInsuranceInfo.com is an experienced brokerage that represents all carries and can provide our clients with an easy guide and rates that the lay person can understand. We are not pushing one product or pushy at all. We are not sales men, we are advisors and our goal is to help people make an informed decision. After all most of our business is by referrals.