A long term care insurance policy provides you with peace of mind that if you become unable to take care of yourself, your family won’t have to struggle with the burden of taking care of you.
While no one likes to think about the possibility of needing long term care, this type of insurance can be an important way to protect your financial future and the future of your loved ones.
Here are five reasons why you should purchase long term care insurance now before it’s too late!
1) What long term care insurance is
Long-term care is a type of personal health care. It includes assistance with activities such as bathing, dressing, and eating. Long-term care services may also include help with mental activities like checking a calendar or managing finances. A person’s ability to perform such daily tasks may decrease due to age or physical and mental health conditions.
Long-term care is provided by home health aides, nursing homes, and assisted living facilities. T
o qualify for public funding for these services, some individuals may need to go through an assessment process that evaluates their needs and determines how much money they have saved in order to pay for services out of pocket on their own without receiving public support.
2) How to understand your policy
Long-term care insurance covers services to people who have chronic illnesses or disabilities that make it difficult to perform daily tasks. If your policy allows, check out in-home options and get creative about living as independently as possible.
This can cut down on costs by keeping you out of an assisted living facility or nursing home for as long as possible.
While some seniors may be eligible for Medicaid benefits, which vary from state to state, these don’t necessarily cover long-term care services; only medical expenses that a person requires in order to live.
3) Why long term care insurance makes sense
- It’s reasonably priced and can save your family a lot of money in a worst-case scenario.
- No one expects to need nursing home care, but getting prepared and planning ahead can help families avoid financial hardship if they do.
- You don’t have to be sick or disabled to need long term care—in fact, most people use their benefits because of an accident or injury.
- Many nursing homes require patients to contribute thousands of dollars towards their care up front, so purchasing protection before an emergency occurs may help prevent those costs from being added onto your loved ones’ credit card debt.
- If you think long term care is just for old people, think again: 8 out of 10 Americans who require assisted living wind up in a facility within five years of a diagnosis. That makes sense when you consider that more than 60% of all seniors will suffer from some sort of illness or disease while they’re still alive; that number is expected to grow as we age.
4) Purchasing long term care insurance early in life lowers your cost
Long-term care insurance is a type of health insurance that pays for services such as nursing home and assisted living, in case you ever need them.
Unlike life and health insurance, though, there’s no physical exam to determine your eligibility; instead, premiums rely on your medical history. It’s more expensive to purchase at a younger age because generally speaking, older people will spend more on long-term care than younger folks.
Therefore, purchasing earlier will lower your cost when compared to purchasing later in life. Plus, you may qualify for a group policy through work at an even lower rate or be eligible for coverage based on family members’ ages or income levels.
5) Finally, does long term health insurance make sense for everyone?
If you’re not insured and in your 20s, there’s a good chance that some of your health needs will be met by friends and family.
However, as life goes on, chances increase that they won’t be able to cover them; if you have a serious illness or injury later in life, who pays for these costs? More than ever before, people are being forced to make choices between daily essentials (like food and rent) and paying for necessary medical services.
Being uninsured can be devastating to your financial situation when faced with having to pay out-of-pocket for expensive healthcare bills.