Long Term Care Insurance

Long term care insurance helps provide for the cost of long-term care beyond a predetermined period. This might be home care, assisted living, adult daycare, respite care, hospice care, nursing home or an Alzheimer’s facilities.

Recipients are generally not sick in the traditional sense, but may be old and frail, and unable to perform basic living activities on their own such as getting in and out of a bed or chair, dressing, bathing, eating, toileting, and walking. Or they may be disabled from illness or accident.

The risk of needing this care rises exponentially with age and in many cases, it’s not covered by Medicare or Medicaid. Long-term care insurance can also help provide for the care of an individual who suffers from Alzheimer’s or dementia. Coverage costs can be expensive, so long term care insurance is best purchased well before it’s needed to spread out the costs.

It’s not just for the elderly. Statistics show that 70% of people over 65 will need some type of long term care during their lifetime, and 40% of those receiving care are under 65.

Rates are based on several factors:

  • Age of the insured
  • Daily or monthly benefit maximums
  • How long benefits are paid
  • Elimination period which is sort of like a deductible. It’s the number of days that you need to be in long term care before insurance starts paying.
  • Health ratings. Healthy people get lower rates.