What exactly is Long-Term Care Insurance?
Whether a company owner purchases it to offer an important employee benefit, or an individual uses it to protect an elderly mother or father, long-term care insurance (LTC) is usually coverage designed to help pay for prolonged medical and non-medical services that would or else be paid out-of-pocket. In 2007, 8 million Americans were secured with LTC, with $3. five billion in long-term care statements paid, according to the American Association with regard to Long-Term Care Insurance (AALTCI).
Although some LTC insurance plans cover nursing home care, other plans provide insurance coverage for a range of services including care in an adult day care center, aided living, and formal or informal in-home care. LTC insurance plans pay out benefits to you and anyone else a person designate, such as a spouse, parent, or even child. Depending on the policy, it will either pay a fixed amount or reimburse you for services provided.
Should i Need It?
Similar to homeowners, health, and auto insurance, LTC insurance helps guard you, your loved ones, and your assets. For the elderly person falls ill plus lacks insurance, the burden to pay for health care often falls on family members : and that cost can be substantial.
Taking into consideration the emotional struggles that result every time a loved one requires this type of care, the last thing you’ll want to think about is a steep economic burden as well, and LTC insurance plans help you avoid this added stress.
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How Does It Differ From Disability Insurance policy and Health Insurance?
Medical insurance and impairment insurance do not protect you and your family in the same manner that long-term care insurance really does. In fact , health insurance plans typically include only 30 days of recuperative period, whereas LTC insurance plans often protect two years or more.
Although disability insurance policy replaces your salary in the event of an injury, it fails to cover ongoing medical care. Medicare is even more restrictive, reimbursing you on average only 28 days, with a maximum of 100 days.
How Much Does It Cost?
Premiums vary, depending on your age and health conditions when you purchase the policy, as well as the amount of coverage you desire. Although the cost of care in nursing facilities and assisted living facilities differs from state to state, the average yearly cost of the nursing home in 2010 reached $80, 850, according to Long Term Care Insurance coverage Tree.
This represents a significant expense for many families, so it’s best to be prepared. Purchasing LTC insurance at a younger age is a smart idea, considering that you are likely to be healthier and receive a cheaper premium. However , the AALTCI reported that only 33 percent of Americans who apply for this type of insurance plan apply at the age of 55 or youthful.
Coping with a parent, spouse, or child’s illness is never simple, but long-term care insurance will help protect you and your family. Contact your indie insurance agent to find the best policy for your family’s specific needs.