{"id":359403,"date":"2021-02-24T10:47:44","date_gmt":"2021-02-24T17:47:44","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=359403"},"modified":"2021-02-24T10:47:47","modified_gmt":"2021-02-24T17:47:47","slug":"long-term-care-insurance","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/finance\/long-term-care-insurance\/","title":{"rendered":"What is long-term care insurance?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Disclosure regarding our editorial content standards.<\/a><\/p>\n\n\n\n

It was estimated in 2017 that 52 percent<\/a> of those turning 65 that year would need some form of long-term care in their lifetime. Long-term care (LTC) refers to services that help people, often the elderly, who have a physical or mental condition and are unable to care for themselves. These services can include assistance in dressing, eating, bathing, medication management and more. <\/p>\n\n\n\n

Despite such a widespread need for long-term care, the service isn\u2019t covered by Medicare. And while Medicaid can sometimes offer long-term care coverage, the individual must prove a need for financial assistance.\u00a0<\/p>\n\n\n\n

This leads to a dilemma that many Americans have started to face year after year. Long-term care is expensive\u2014for example, it costs an average of $225 per day<\/a> for a semi-private room in a nursing home. Middle-class families who saved a nest egg for retirement will find that they don\u2019t qualify for Medicaid coverage. <\/p>\n\n\n\n

And yet, just a few short years into paying for a partner\u2019s long-term care costs, they\u2019re left broke and returning to work at an advanced age.\u00a0<\/a><\/p>\n\n\n\n

For some, the natural answer is long-term care insurance. Long-term care insurance helps to offset the costs of long-term care services. Many long-term care insurance policies cover nursing home care, assisted living facilities, adult day care services, in-home care, home modification and care coordination. <\/p>\n\n\n\n

However, long-term care insurance can be quite complicated. It\u2019s imperative to understand the policies\u2019 requirements and limitations, as well as the other options available. <\/p>\n\n\n\n

Who qualifies for long-term care insurance?<\/h2>\n\n\n\n

Each provider will analyze your current health status and medical history before qualifying you for long-term care insurance. Note that approval is much faster for individuals who are young and healthy. If you are older with existing health problems, you may not qualify. Or, your provider will not cover your costs if these existing health problems result in you needing long-term care.<\/p>\n\n\n\n

Most people who have debilitating conditions won\u2019t qualify. Additionally, if you\u2019re already receiving long-term care services, you likely will not be eligible.  <\/p>\n\n\n\n

Some providers will simply not cover certain medical conditions, so make sure to understand your provider\u2019s policy and limitations. <\/p>\n\n\n\n

Many individuals choose to purchase long-term care insurance in their 50 and 60s. <\/p>\n\n\n\n

Why should you consider buying long-term care insurance?<\/h2>\n\n\n\n

End-of-life care can be costly, adding up to hundreds of thousands of dollars. If you don\u2019t have enough money to cover these costs easily should they arise, you may want to consider long-term care insurance. Otherwise, your savings may be depleted,<\/a> leaving nothing for your partner or your family.\u00a0<\/p>\n\n\n\n

Another important note is that long-term care insurance provides more options for end-of-life care than Medicaid can. With the right insurance policy, you may have more flexibility in choosing the type of end-of-life care you receive, such as assistance in your home or a higher-quality nursing home. <\/p>\n\n\n\n

How does long-term care insurance work?<\/h2>\n\n\n\n

You can purchase long-term care insurance through an insurance company, an agent or sometimes through work. Coverage through work, when available, is often an excellent choice as you may be able to benefit from a group discount. <\/p>\n\n\n\n

You need to qualify for long-term care insurance. Providers will assess your current health and medical history before approving you for a policy. <\/p>\n\n\n\n

Typically, you pay an annual premium fee. You can expect your premium to be more expensive the more your provider covers. Note that many insurance providers can increase their premiums without telling you. You can request information on the company\u2019s premium rates over the last few years to understand their average rate of increases. <\/p>\n\n\n\n

Additionally, as you age and your health declines, you\u2019ll find that your premiums increase as well. <\/p>\n\n\n\n

Note that long-term care insurance doesn\u2019t cover all the costs associated with long-term care. There are usually limitations on how much it will cover per day, and the maximum benefit limit\u2014meaning, how many months or years of nonstop coverage it will cover. <\/p>\n\n\n\n

For example, a policy may state that after eight years of nonstop care, the individual receives no more coverage. This limit can also be expressed by a cap dollar amount, such as after an individual has received $1 million in coverage.\u00a0<\/p>\n\n\n\n

How much does long-term care insurance cost?<\/h2>\n\n\n\n

Long-term care insurance is a personalized plan. First, you\u2019re evaluated and given some quotes for different coverage levels. Next, you pick the coverage that seems to suit your needs. <\/p>\n\n\n\n

Ultimately, your coverage will depend on a variety of factors, such as your:<\/p>\n\n\n\n