The Coverage of Long Term Care Insurance Policies

Long term-care pertains to the different services beyond medical care and nursing care used by people who have difficulties or chronic illnesses. Long-term care insurance assists you in paying for these advantages, which can cost a lot. A policy also promises that you have the power to make your own decisions about what long-term help you need to get and where you have access to them.

You can pick long-term care polices that pay only for nursing home service, or only home care. Or, you can decide to buy coverage for a combination of service choices that encompass nursing home, assisted living, and adult day care.

There are times when coverage in not sufficient. Long-term insurance pays consistently a daily benefit for nursing-home care. But, supplies, drugs, and specific services, which are not covered, add 20 percent or more to the bill. After that comes inflation. Between 2004 and 2008, nursing home expenses are predicted to increase by 5.6 percent a each year, and 5.9 percent for four years after that, according to the Centers for Medicare and Medicaid Services. That $181 daily benefit you purchase this year will cost $238 in five years and almost $300 in nine years. A $181 benefit bought now will only pay about half of the cost then.

Numerous Americans expect to receive care in their homes. But polices basically pay only a portion of the daily benefit older policies paid just 50 percent for home care. That’s not sufficient if you do not have a husband or wife to help take care of you. Home health aides charge $18 an hour on average. Employing one for 8 hours a day costs $144. A policy with a $181 benefit would only pay a part of that.

This is attributed to that fact that premiums increase as you age. For example, a plan that costs a 50 year old $ 1,625 a year will cost a 60 year old $3,100 and a 70 year old $7,575.

Many insurance agents prefer you purchase young to decrease your annual premium. Let’s say you purchase at age 40 and pay a decent $685 annually. The mean age of people put in to a nursing home is 83. That means you may have a chance of paying for almost 40 years before being aware whether you’ll need to utilize the policy.

Long term care insurance is basically offered through clusters and to individuals. Group insurance is mostly provided through employers, and this type of coverage is becoming a more common benefit. By the end of 2002, more than 5,600 employers were giving a long-term care insurance plan to their employees, retirees, or both.