Long term care insurance is designed to help anyone that has exhausted their other insurance policies due to critical illnesses and disabilities. Those that are diagnosed with a serious illness that requires extensive medical work might hope that their other insurance policies will cover the cost of care, but that is not always the case. Here is a closer look at the benefits of this form of care insurance and exactly who needs this coverage.
Factors to Consider
The two most important factors that you should consider are your age and your medical history. It is generally suggested that anyone over the age of 50 begins to take a look at this form of coverage once every few years to determine their needs. Anyone with a family history of serious illnesses such as osteoarthritis might want to research these policies even earlier. Some other factors to consider include your savings, current income, other insurance policies, and your support system (family and friends).
What Is Long Term Insurance?
This type of insurance essentially fills in the gaps of one’s health insurance policy. Many insurance policies do have a dollar amount cap for the year and the policyholder’s lifetime, and it is quite easy to reach this amount if extensive care is needed. An example of this would be a policyholder that suffers from a stroke and needs in-home care multiple days a week. This type of assistance can become prohibitively expensive and will quickly exhaust a health insurance policy. Long term policies could also cover some or all of the costs for extended stays in the hospital, physical therapy, and assisted living homes.
Determining Premiums and Coverage
After the age of 50, our risk of becoming ill or injured and needing long term care goes up exponentially. This means that premiums will gradually begin to climb starting in one’s 50s. Those that wait until they are in their 60s or 70s may find that these policies are quite unaffordable. By exploring long term insurance early and staying as healthy as possible, policyholders can keep their premiums down without sacrificing the size of their deductible.