Long Term Care Insurance | USA Life Insurance

Debate – Long Term Care Insurance – Is It Wise?

Here’s the big debate: Long term care insurance isn’t necessary for you. Some people are unyielding in their position that they’ll never get long term care insurance. I am not referring to those who are so rich that they can easily pay for long term care without becoming financially ruined. I’m not also talking about those who really are so poor that they qualify for Medicaid. I am referring to those who neither qualify for Medicaid because they’re not poor nor can pay for a year’s stay in a nursing home without becoming financially ruined. This article will take a look at the debate: Long term care insurance — Is it Wisde?

Americans are living longer. That’s good news. It’s also bad news because the older people grow the more they are likely to require some form of long term care. Statistics show that one out every two of up to 40 percent Americans aged 65 and above are likely to enter a nursing home within their lifetime. Another report estimates that about 12 million Americans will require long term care by 2020. Can you stand the pain you’ll cause if you eventually need long term care without long term care insurance?

If there’s a fifty/fifty chance that something will happen, isn’t it a smart move to be insured against it. Oh, it’s 50/50 for 40% of a given population. But consider this: More than half of those who end up requiring long term care pay for it out of their own pockets (That’s about $ 80,000 per annum). They saw it as something that happened only to others until they found themselves needing it.

If you think that’s bad then you’re in for a big surprise: These folks end up using up their life savings and painfully end up becoming welfare statistics as they end up falling back to Medicaid. Simply put, they become poor enough to qualify and that’s really sad.

Is maintaining a stiff stance on long term care insurance then a wise one? Is becoming a burden to your children because you were a little thoughtless worth it? Is playing the probability game right if you’re on the wrong side of the divide? You may never need long term care. That’s a fact. But if you plan to live long you MAY need it. That’s also another fact. You can decide how you want to use these facts: Take an unnecessary high devastating risk or play safe.

Visiting insurance quotes sites for comparison shopping will enable you save a lot (maybe a couple of thousands) in insurance. This is especially true if you have many insurance policies. All you have to do is get and compare quotes for each. You will make savings if you use just one of such sites.

But, you will get better results by visiting at least three. This provides you a broader basis for doing better comparisons thus increasing your chances of realizing more savings. If you do this well you can save enough from your existing policies to pay for long term care insurance without stretching your current insurance budget much. Please, if you decide to switch insurers do not terminate your existing insurance policy until the new one is fully operational.

Remember, while the debate on long term care insurance rages on you’ll then have the peace of mind knowing you can’t lose whoever wins: The guy who says you need long term care insurance or the guy who says you don’t.

Long Term Care Insurance circa 2007

When long term care insurance was first conceived and offered, back in the 1980′s, most LTCi premium rates were much lower than today’s policies. Why have they increased so much and why are long term care insurance companies raising premiums on existing policies?

Well, for one thing, many long term care insurance polices today offer significantly more benefits than the old “nursing home only” policies. Due to consumer demand as well as consumer protection laws being passed, long term care insurance policies of today have less restrictions (As with any contract, always read the fine print!). The more an insurance company has to pay out, the higher the premiums with be.

Other reasons, besides the all too prevalent inflation, are that long term care insurance companies had no previous actuarial data to crunch. For instance: How long would a person pay before going on claim? How many would die before collecting benefits? How much money would the long term care insurance company need to pay out in claims? And finally, would the company’s product sales and investments provide enough assets to keep them viable?

Insurance companies didn’t have past experience with long term care claims, plus competition was stiff. As years ticked by, many companies offered more benefits while keeping their premiums quite low. Some even sold low-priced policies to people with health conditions that would likely lead to long term care. This was a big mistake.

My mother bought a low-balled policy that was packed with benefits. She paid about $ 1500 a year for 5 years. After 3 year’s worth of recent rate increases, her premium has more than doubled. As strokes and Alzheimers run in our family, we’re hoping that the insurance company doesn’t increase her premium many more times.

Are we upset that Mom’s premium has increased so much? Yes and no. No one likes unexpected, unpleasant changes and certainly no one wants to pay more for insurance, but we do appreciate that she has been protected against catastrophic long term care costs all these years, whether she used the insurance or not.

Now some folks would call significant rate increases on an unsuspecting consumer fraud. But it’s not. It IS quite unfortunate, but it’s not fraud. If it were, the Department of Insurance in every state would shut the long term care insurance companies down.

Most LTCi companies simply did not have the foresight to charge enough money for their earlier policies. They guessed at how much money they’d need to charge and they guessed wrong.

They’re still trying to figure out how much they need to charge in order to maintain a healthy pool of money from which to pay claims, while still remaining competitive. The playing field keeps changing. Not the least of their problems is the rate of inflation in the long term care sector. LTCi companies have to pay out more money for equivalent care every year.

That’s the insurance companies’ point of view. But there are two sides to any story.

It does appear that some LTCi companies may have used unethical, but not previously illegal tactics.

Companies sold low-priced policies to unhealthy people, then sold their LTCi business claiming financial duress due to too many claims. The original, “low-balling” company makes money while the new owner of the LTCi business is left to clean up the mess, and the policy holders face the unenviable choice of paying increasing rates or giving up their coverage.

Why do I say that companies, who didn’t even have proper actuarial data, could be considered unethical for selling low-balled policies to unhealthy people? Well, because I’ve spoken with truly ethical, independent long term care insurance brokers who wouldn’t sell those companies’ products unless there was no other way to insure a person. Even then, they’d make sure to let their client know that their rates would most likely increase in the future. These brokers could see what the future held, so why didn’t the companies consider the future?

The problem is that it is difficult, if not impossible, to prove that an insurance company was aware of these concerns ahead of time.

Luckily for the consumer, there have been positive changes. Laws are being passed due to the frequent and high rate increases. Do your homework. Find out exactly what your state’s laws are pertaining to the sale of LTCi and the obligations of LTCi companies to their policyholders.

In Arizona, companies must offer their policy holders choices when premiums are raised. They can lower the amount of their original coverage in order to keep their premiums the same or they can stop paying their premiums altogether. With the latter choice, the company creates a fund for the policy holder in the amount of the total premium payments paid to the company. That fund will pay for the policy holder’s long term care until the money runs out. Of course, it does not take inflation into consideration.

My mother was given those 2 options this year when she received notice of (yet another) premium rate increase. Since she had only paid about $ 10,500 in premiums, which that would only cover a little over 3 months worth of long term care in a skilled nursing facility, she opted to keep her existing policy/premium. She was lucky. She was able to afford the higher premium even though she is on a fixed income.

BTW, a few LTCi companies have not raised their rates. They offer very good, expensive policies, therefore reducing the possibility of future rate increases. Even with laws in place; inflation, a drastic increase in claims and how well a company’s investments fare can contribute greatly to whether an LTCi company asks for rate increases or even remains viable.

Check your State’s Department of Insurance to find out which companies have raised rates and also to see if any complaints have been made against a particular insurance company or agent. Check with the services like Weiss Research, Standard & Poor’s, Moody’s, AM Best and Duff & Phelps to research the financial status of any long term care insurance company.

In the end, you get what you pay for, so be sure to ask for decision assistance and quote comparisons from the online.

Long term care insurance information – Best Buying Tips

Best long term care insurance information comes from the American Association for Long-Term care Insurance. Visit their website to find information, costs, get a free quote. www.aaltci.org

Why Do People Reject Long Term Care Insurance?

I have been involved with long term care insurance for well over a decade, and over the last five years, I have considered myself a long term care insurance specialist. I have concluded that in order to do the job of insuring individuals and families against the threat of chronic care needs, I must be dedicated to it. Offering life insurance, disability or health insurance would only dilute what should be a concentrated effort to make sure families have the proper amount of long term care insurance. In addition, an insurance agent must know how to navigate through the tremendous diversity of health conditions that clients present prior to applying because without the client’s application obtaining approval, all efforts are in vain.

Whether a person has been approved or never makes it to the point of applying for a policy, individuals and couples reject this insurance for the wrong reasons. The most unfortunate reason I have uncovered in my experience is simple denial. People do not want to believe that their vitality will eventually diminish. A person will convince themselves that they will either die in their sleep or drop dead from a heart attack. I have trouble empathizing with this position because it only takes a few minutes of thought to consider how needing chronic care will affect friends and family. When an individual or couple decide against insurance, they should ask the following questions: Who will care for me? Who will coordinate my care? How long can I afford ,000 per year? If my family handles the scheduling of my care, who will train them to do this? How much will that cost? Will they have to leave their job(s) to do this? Can they afford to lose their job(s) if I become their responsibility? Will my friends and family still have to manage my finances? Will I be a burden to my family? Will my spouse have to go back to work if I need care longer than our savings will last? Will there be financial security for my spouse or family after I am gone?

Is the safe spot of denial worth the expense of every one around you? Of course not. Leave denial at the door, and clear your head to make a rational decision for or against LTC insurance.

As expected, there are other reasons people reject LTC insurance, and the second most common reason is the cost of the insurance. There is a simple test you can do to determine if you are a good fit financially for long term care insurance. If you own your home outright and your savings and investments are over ,000 then you should consider the insurance. Look at the return you make every year on your savings. Is the interest you have earned greater than the cost of the plan quoted to you by your LTC specialist? Do you live off of this interest? Bottom line, if you can pay your insurance premiums with the interest on your savings then you can afford the insurance, but there is more to this analysis. The benefits must be in line with your personal finances, and determining benefit levels is why you want an LTC Specialist. Since average long term care insurance premiums range from 0 to 00 per year, just asking how much it costs isn’t going to give you the information you need. An agent that dabbles in this field may offer you a plan that leads you to believe it is too expensive, even using the formula proposed above, or an ethically challenged agent may under-insure you because they do not want to scare you away with a premium that they believe you will find to be too high.

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The middle ground can be found with a plan designed to cover the cost of a semi-private room in a local nursing home. If you need chronic care, you may receive home care or care in an assisted living apartment and never see the inside of a nursing home, but, typically, a nursing home stay is the most expensive scenario with the exception of extensive home care or round the clock home care. If your insurance covers or nearly covers this worst case scenario, you will have an appropriate level of coverage. After you and your specialist decide on your level of coverage, it will be time to evaluate the affordability of the annual premium. You will know if it is affordable or not. If the premium eats away your principal savings and cannot be paid with the interest you earn each year from your savings then perhaps the insurance is not right for you. In this case, if you need long term care, you would spend down your estate to near zero and apply for Medicaid, or medical welfare.

In going through this process, make sure to find a specialist in long term care insurance. Financial planners are not long term care specialists. To check a financial planner’s or agent’s experience level just ask them which LTC insurance company will offer coverage to someone who has a diagnosis of Bipolar Disorder. Or, how are autoimmune conditions treated by these companies? Do they know what autoimmune means? Any licensed agent or financial planner can submit an application for a client, but how many specialize in making sure an application comes back as an insurance policy without a large increase in the premiums? This is the job of a long term care insurance specialist. The specialist knows the best companies for each medical condition and the right fit for the specific needs of the client. A client who will retire overseas should apply for a cash only plan or indemnity plan. There are many scenarios where dabblers and stockbrokers can make mistakes that you cannot afford when your family’s well-being is at stake.

While investigating your long term care options, give your specialist a chance to help you uncover any reasons that may prevent you from making the right choice. A true specialist is not trying to “sell” you, and this will be apparent to you. The two main reasons individuals and couples reject long term care insurance are denial and cost. Open your self up to exploring the consequences of being in denial or misjudging if you can really afford this insurance. You may become uncomfortable discussing your mortality, but by doing this, you may end up saving the people you love from exhaustion and heartache.

I thought about leaving this next point out of this article because it seems too obvious, but it should still be addressed. Forgive me if the following statement is insulting. Insurance is not free. What I mean by this flippant sounding statement is that we do not receive a refund at the end of our lives for having paid all those years of car insurance, and the same is true for home owner’s insurance, disability, health or an expired life insurance policy where upon it’s expiration we are still drawing breath. The same is true for long term care insurance. If you are one of the lucky individuals who never uses their long term care insurance policy, you will not receive a refund of your premiums.* This is not a new idea to any of us, but it is worth a mention. If you say no to LTC insurance because you will not get your premiums back when you die, then consider the possibility that your reason for rejection is based on denial because insurance has never been free.

One last point, if you are married and you both apply for long term care insurance, but one of you is not approved for coverage, do not make a knee jerk reaction out of anger or frustration to decide that neither of you should have the insurance. Instead, after learning the news, let the emotions cool off for a few days, and then visit with your specialist to decide the best course of action.

* A return of premium rider is available on most plans at an extra cost. Some plans do return the premium if the policyholder dies prior to attaining a predetermined age.

affordable long term care insurance va

Long term care insurance can be a practical and affordable way to pay the costs of long term care services. It can also help you:
. Maintain control over how you spend your savings
. Have a choice in who provides your care and where
. Afford higher quality care for a longer period of time

With the right long term care insurance in place, you can take comfort in knowing
that you have taken the next step toward a more secure and independent future.

PREPARING FOR LONG TERM CARE IS YOUR RESPONSIBILITY.

Long term care insurance can play a critical role,providing a variety of important benefits:
. Insurance is primarily designed to cover the costs associated with long term care
while helping protect your retirement income for the purpose you intended.
. It enables you to participate in the choice of where you receive care, including at home where most people prefer to stay, at an adult day care center or in a nursing home.
.The cost of coverage is based in part on your age and health when you apply. So, the younger and healthier you are, the lower your premiums may be.
Long term care insurance doesn’t replace what families do, but it does help them provide care
for their loved ones better and longer.

CHECK THE FACTS
LONG TERM CARE INSURANCE
Underwritten by
Genworth Life Insurance Company

Check the facts, then check into
long term care insurance.

Genworth Life Insurance Company offers comprehensive, flexible long term care insurance
policies that provide superior protection.Our Long Term Care Insurance Division helped
pioneer the development of long term care insurance more than 30 years ago and we’ve been an industry leader ever since.(1)
Over the years we’ve helped over one million policyholders (2) protect their assets and their future financial independence. We can help you, too.

1 Life Plans 2008 Long Term Care Individual and Group Association Top
Writers Survey Results. Based on number of individual policies sold and
individual annualized premium in force.
2 Over one million policyholders as of 12/31/08, beginning 12/74.

This solicitation of insurance is for policy series 7042, 7042 Rev,
7044, 7044 Rev, 7048, 7050 (7042FL Rev & 7044FL Rev in Florida,
7042ID Rev, 7044ID Rev & 7048ID in Idaho, 7042NC Rev & 7044NC

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Rev in North Carolina, 7042OK Rev, 7044OKRev & 7048OK in
Oklahoma, 7042TX Rev & 7044TX Rev in Texas, 7042WA, 7044WA
and 7048WA in Washington). Not all policies are available in all
states. Complete details of the benefits, cost, limitations, and
exclusions, of these valuable long term care insurance policies
will be provided to you by the company. Copies of articles and
survey results are available from the company or one of our
insurance agents.
Alzheimers Association and Genworth Financial, Inc. have entered
into a strategic relationship that permits Genworth use of the
Associations trademarks and/or logos. The use of the Alzheimers
Association logo does not constitute an endorsement of the company’s products and services

©2006-2009 Genworth Financial, Inc. All rights reserved. Genworth, Genworth
Financial and the Genworth logo are registered service marks of Genworth Financial, Inc.
81900 07/03/09

IT WON’T HAPPEN TO ME, BUT IF IT DOES,I CAN AFFORD IT.

We believe we’ll live a long life. That’s why we prepare for retirement. Too often, however,retirement savings are used to pay for long term care.
If you do need long term care services, it is prudent to have a strategy in place to help pay for them;otherwise, your retirement savings may be at risk.
Nationally, across all home care provider types,the average median hourly rate for home health aides is .36.
Genworth 2009 Cost of Care Survey,
conducted by CareScout, April 2009.

Nationally, the average median annual cost for a private room in a nursing home is ,208. The
five-year annual increase in cost of private room has increased more than 4%.

Genworth 2009 Cost of Care Survey,
conducted by CareScout, April 2009.

I CAN COUNT ON MEDICARE OR MEDICAID TO PAY FOR MY CARE.

Most Americans, age 65 and older, are eligible for Medicare, but benefits for long term care services
are generally limited. Medicare wasn’t designed to adequately pay for home care, adult day care or assisted living care. It does pay for a portion of nursing home care, up to 100 days per benefit
period, but only for skilled or rehabilitative services. Medicaid will pay for custodial care in
a skilled nursing home, but those rules are governed by each state. And, the Deficit
Reduction Act of 2005 made qualifying for Medicaid even more difficult.
Most states permit Medicaid beneficiaries to keep no more than about ,000 in liquid assets.
The value of the home generally is exempt(provided equity does not exceed 0,000 or at
state discretion 0,000). Eligibility is denied if the applicant has transferred assets in order to
qualify for Medicaid. The state looks back five years to determine whether asset transfer rules have been abused.The Deficit Reduction Act of 2005 implemented new policies that prevent people who transferred assets even for legitimate purposes from accessing Medicaid coverage
for LTC. Medicaid also has a program for recovering the value of LTC services from the estates of deceased beneficiaries.

AARP Public Policy Institute, Myths about the Medicaid
Program and the People it Helps, November 2008

MY FAMILY WILL TAKE CARE OF ME.

Of course they will. That is what families do.But have you considered what it will do to them emotionally and financially, especially if they
don’t live near you? The loss of wages, health insurance and other job benefits, retirement savings, and Social Security benefits holds serious
consequences for caregivers. More than one-third (37%) of caregivers to persons age 50 and older reported quitting their job or reducing their work hours in 2007.Caregivers to persons age 50 or older reported spending an average of ,531 out-of-pocket in
2007. Long-distance caregivers had the highest annual expenses, ,728.

AARP Public Policy Institute, Valuing the Invaluable: The
Economic Value of Family Caregiving, 2008 Update

The information contained in this material describing certain
aspects of the Deficit Reduction Act of 2005 is based on our
current understanding of the law. It is not intended to provide
legal advice and is subject to interpretation. Consult your
attorney for information related to your particular situation.

Insurance and annuity products:
. Are not deposits.
. May decrease in value.
. Are not insured by the FDIC or any other federal government agency.
. Are not guaranteed by the bank or its affiliates.

Download your FREE (VA.) cost of care survey today, and receive a bonus guide- on how to design your own plan!

affordable long term care insurance virginia

With the right long term care insurance in place, you can take comfort in knowing
that you have taken the next step toward a more secure and independent future.

PREPARING FOR LONG TERM CARE IS YOUR RESPONSIBILITY.

CHECK THE FACTS
LONG TERM CARE INSURANCE
Underwritten by
Genworth Life Insurance Company

Check the facts, then check into
long term care insurance.

This solicitation of insurance is for policy series 7042, 7042 Rev,
7044, 7044 Rev, 7048, 7050 (7042FL Rev & 7044FL Rev in Florida,
7042ID Rev, 7044ID Rev & 7048ID in Idaho, 7042NC Rev & 7044NC

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©2006-2009 Genworth Financial, Inc. All rights reserved. Genworth, Genworth
Financial and the Genworth logo are registered service marks of Genworth Financial, Inc.
81900 07/03/09

IT WON’T HAPPEN TO ME, BUT IF IT DOES,I CAN AFFORD IT.

Nationally, the average median annual cost for a private room in a nursing home is ,208. The
five-year annual increase in cost of private room has increased more than 4%.

Genworth 2009 Cost of Care Survey,
conducted by CareScout, April 2009.

I CAN COUNT ON MEDICARE OR MEDICAID TO PAY FOR MY CARE.

AARP Public Policy Institute, Myths about the Medicaid
Program and the People it Helps, November 2008

MY FAMILY WILL TAKE CARE OF ME.

AARP Public Policy Institute, Valuing the Invaluable: The
Economic Value of Family Caregiving, 2008 Update

Insurance and annuity products:
. Are not deposits.
. May decrease in value.
. Are not insured by the FDIC or any other federal government agency.
. Are not guaranteed by the bank or its affiliates.

Download your FREE (VA.) cost of care survey today, and receive a bonus guide- on how to design your own plan!

Jason asks LTCI expert, William M. Upson, for the top-three most common misconceptions that people have about Long Term Care Insurance. LT-Care.com September, 2011

Long Term Care Insurance Facts

Maybe you’ve heard the old joke about the retiree who bought some new.

“Last week I bought a retirement insurance policy,” he said. “All I’ve got to do is keep up the payments for 15 years and my agent can retire.”

The fact is, when it comes to insurance there is myth and there is reality, and the benefits of fall closer to the latter than they do the former.

So what is and do you really need it? Here are the facts:

Long-term care doesn’t have one hard or fast definition. In general, any chronic or disabling condition that requires nursing care or constant supervision can trigger the need for long-term care services. was introduced 30 years ago to supplement Medicare’s limited coverage for nursing home care. Today it covers a multitude of services for elders whose longevity outstrips their ability to care for themselves. A typical policy covers nursing home services, but also home health care services, assisted living facilities, respite care, hospice care, adult day care, care advisory services and medical equipment and home modifications.

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Studies show that nearly one out of every two persons age 65 and older will probably spend some time in a nursing home. If you think your chances of living 25 or 30 years into retirement (or more), that increases the likelihood that you might need sustainable long-term medical care in your 80′s and 90′s.

Long-term care, in its various forms, isn’t cheap. Nursing home care, for example, costs on average ,000 annually across the United States and in major metropolitan areas the average escalates to 0,000 per year and higher. In New York State alone, nursing home care in 2007 averaged between 4 per day and 0 per day – or between ,000 and 4,000 per year. Home health care can be pricey, as well. New York State estimates that the average cost of home health care in New York State in 2006 was between per hour and per hour.

Because of the high costs of long term care, doesn’t come cheap. According to the American Association for Long-Term Care’s 2009 Sourcebook, individuals seeking long-term care insurance between the ages of 50 and 54 paid as little as 9-per-year; for those between 60 and 64 the lowest amount paid was ,125. The Association pegs the average cost of long-term care insurance at between ,800 and ,000 a year, although annual costs of ,000 or so are not uncommon the higher you go up the wealth ladder.

In a word or two, buy early and be creative. The sooner you buy long term care insurance, the healthier you usually are. And that means a steep discount from insurance companies (who are less likely to give you a good deal – or any deal – the higher your age.)

Also, aim for a policy that costs between ,000 and ,000 annually – that should be plenty to cover nursing home and other long term care costs, and it won’t break the bank, assuming you have some money set aside for long-term retirement needs.

Ask your insurance provider about inflation protection. The value of money erodes over time and so will the value of your coverage if you don’t have any inflation guardrails up on your path to retirement.

Make no mistake, long-term care is a personal choice. But if you believe you’re aging demographics are on the long side, and you worry about taking care of health care needs in your later years, may just be what the doctor ordered.

Can Long Term Care Insurance Policies Ease My Worries After Retirement?

More and more Americans are now aware of the importance of having Long Term Care insurance policies to secure their future and to lessen the burden of their retirement and discomfort of growing old. Aware and well-informed of the benefits of a Long Term Care insurance, these LTC-insured individuals are now living a worry-free and more comfortable lives.

Now, you might be asking how you can benefit from having a Long Term care insurance and if it is really a good idea to invest on it while you are still financially-able and has a good health condition? The answer is yes. In fact, the younger age you purchase a Long Term Care insurance, the better deals and inflation protection you will get. But you must also analyse and take into consideration which type of Long Term Care insurance policy you will avail. This is important to fully maximize the benefits and put into good use the hard-earned savings and assets that you have.

Long Term Care insurance policies provide medical and non-medical services for those insured individuals who cannot take care of themselves anymore, or have no one to take care of them when they can no longer perform daily activities with ease such as bathing or eating. It also caters services to those who have prolonged diseases and illnesses like Alzheimer’s. The insured individual may be taken care of in a nursing home facility or in the comfort of their own home. Other services include rehabilitation and therapy, homemaking services, and use of medical facilities.

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There are several types of Long Term Care insurance policies and those interested may choose depending on their specific needs in the future and budget at the time of their application. The most common type is the Reimbursement Long Term Care insurance policy. This type of LTC insurance policy pays the precise or definite expenses of your Long Term care insurance policies, whether it is on daily, weekly or monthly basis. If there is any remainder, it will be kept to make the benefits last longer. Another type is the Indemnity Long Term Care insurance policies which are more expensive than the first one because it pays the complete daily benefit amount of your insurance, regardless of the total bill. Lastly, there is the Partnership Long Term Care insurance policy which is a joint program of some state government and private insurance companies. It aims to protect your assets and allows you to apply and qualify for Medicaid, should you have already used up your Partnership insurance policy. Each of the participating states in the Partnership Program may differ in some aspects but all of them require a minimum daily benefit amount and benefit period. This type of Long Term Care insurance policy also offers Dollar-for-Dollar asset protection, and some levels of inflation protection.

Clearly, understanding and proper evaluation of the different types of Long Term Care insurance policies will be very helpful for the applicant to decide on what LTC insurance policies fit their lifestyle, needs, and most especially, budget. It is a known fact that Long Term Care insurance policies do not come cheap that is why some people are hesitant to purchase one thinking that it is just a waste of money and time. But with Long Term Care insurance policies information easily accessible, especially on the internet, Americans, professional or non-professionals alike, must start considering buying Long Term Care insurance policies to ease their worries and uncertainties for the future.

Points to Consider Before Buying a Long Term Care Insurance Policy

Owning a Long Term Care insurance policy is a must for those who want to live a more comfortable and worry-free life after retirement. Not all realize how important a Long Term Care insurance policy is until they have reached the time when they can no longer take care of themselves and will just depend on others’ help to get themselves through every single day.

A Long Term Care insurance policy aids the insured individual by providing him medical and non-medical services that he might need in the future. This includes providing him with nursing care facilities, therapy and rehabilitation, and other medical facilities.

One reason that might be preventing some Americans to consider buying a Long Term Care insurance policy is the price. This kind of insurance policy is quite expensive and a portion of your income must be allotted to pay the premiums. But with the continuous rise in the costs of LTC services, cheaper alternatives are being developed and promoted by the local state governments and private insurance companies.

To get better deals and better inflation protection, a Long Term Care insurance policy is better acquired at a young age. Those who purchased a Long Term Care insurance policy at age 61 and below will have an annual compounded inflation protection of not less than a rate based on changes in the Consumer Price Index (CPI), or a yearly compounded inflation protection of not less than 3 percent.

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In an effort to help and encourage the local residents, some states offer Long Term Care Insurance Partnership Program which is a joint effort of the participating states’ local government and some private insurance companies. This kind of Long Term Care insurance policy lets you apply and qualify for Medicaid once the partnership policy that you acquired has been fully exhausted. It also offers Dollar-for-Dollar asset protection and some levels of inflation protection.

Since a Long Term Care Insurance policy is not cheap and requires you to allot a big amount of your budget, you might want to remember some tips in choosing and buying your Long Term Care insurance policy:

1. Be sure that you purchase your Long Term Care insurance policy from trusted and credible insurance agents or companies. It is wise to know first the financial background and ratings of the company to be sure that they can afford to pay your Long Term Care insurance policy by the time that you need it.

2. Do not be afraid to ask about some complex or complicated insurance policy terms that may boggle or may not be too familiar to you. It is important that you understand and that the policy is well-explained to you to avoid misunderstanding and confusion.

3. If your Long Term Care insurance policy is tax-qualified, the policy must abide with the Long Term Care insurance tax deduction rules and regulations. A tax-qualified LTC insurance policy requires that your condition needs at least 90 days of care, and that a licensed health care professional is available to give a “plan of care” to the insured.

With a large portion of your budget and savings at stake, it is important to be aware and to clearly understand the advantages and disadvantages of having a Long Term Care insurance policy. Be sure that the policy you will buy fits your future needs so that you can use and fully maximize its benefits.

Long Term Care Insurance bought virtually

Long Term Care Insurance can easily be bought virtually without a local agent.
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