Types of Long Term Care Insurance

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Types of Long Term Care Insurance

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Our world is crammed full of statistics, and, a good many of them are related to our short-term and long-term health.  The latest surveys show that Americans are living longer.  Well… hooray to that factoid, and to know that we have a longer life expectancy might just fulfill our every dream and allow us to check off every last bucket list item.

But, the other statistics don’t paint such a rosy picture.  Even if you don’t have any health-related genetic issues, and are relatively healthy, it is logical to assume that the older you are, the more likely that long-term care is in the cards for you. Even if you are blessed with good health now, a chronic condition such as high blood pressure or diabetes, or even a history of lackluster diet and exercise habits, could severely debilitate you in later years, thus necessitating long-term care.

Did you know?

  • 70% of people who reach the age of 65 can expect to need some form of long-term care during their lifetime?
  • Women outlive men by about five years on average, so they are likely to be living solo in the home once their spouse has passed away?
  • Disability from an accident or chronic illness accounts for many needing long-term care? Between the ages of 40-50, 8% of people have a disability which might require long-term care services and after age 90, the percentage jumps to a whopping 69%.

Wow!  Indeed, statistics don’t lie, and while they serve a purpose, besides taking your breath away and leave you reeling in disbelief, the time is now to consider purchasing a long-term care insurance policy so that 1) you are covered when you need it; 2) the assets accumulated during your lifetime are not lost, and 3) you have the ability to pick and choose and ultimately to be cared for in a reputable long-term care facility.  If you want to purchase long term disability insurance or want to learn more about this product you should contact a long term care disability insurance company in New Jersey. NJ insurance brokers have decades of experience in the insurance field and can answer any insurance related question you may have.

Thinking ahead

You wouldn’t leave your house or car “bare”, or without insurance protection, and, in this day and age, you certainly would not walk around without healthcare insurance would you?  The Affordable Care Act has enabled most people in the United States to obtain reliable and good health insurance and Medicare will be put good healthcare in place when you are older, but, it is always important to ensure all your bases are covered and that means having disability insurance, as well as long-term care insurance, in your back pocket… just in case.

In purchasing long-term care insurance, you are not only relieving yourself of a financial burden and hardship should the need arise for you to be placed in a long-term care facility, but, you are also ensuring that your personal savings are not depleted thus rendering any costs to be borne by loved ones, whether for your care if you are able to continue living in your home, or whether you are placed in a long-term care facility.

Understand long-term care insurance

You hear the commercials all the time to think ahead… the financial analysts will tell you that you must plan post-retirement to ensure you have the ability to live comfortably in the standard to which you have become accustomed to, and, hopefully that nest egg will accommodate those needs, wants and desires.  The thought of spending leisure time with our significant other during what is termed “the golden years” could become quickly dashed if a catastrophic event were to occur.  Such a catastrophic event would be sudden, or eventual, long-term care, first in your home, and then perhaps in a reputable long-term care facility.  A lifetime of savings can be wiped out fairly quickly.  This is where the benefits of long-term care insurance is beneficial.

The time to purchase long-term care insurance is not when you need it, but now.  Get it in place and keep your fingers crossed that you never need it.

Long-term care is not just for the elderly

As discussed above, long-term care is often associated with the elderly, or infirm, but please know that it is also required for anyone with a debilitating illness or injury who requires assistance to perform such everyday tasks such as feeding oneself, bathing and getting dressed.  Some employers do provide for long-term care insurance, so check first with your employer.  Otherwise, there are many internet sites that explain in details the pros and cons of obtaining long-term care insurance and suggested plans.  Your best bet is to consult with an insurance broker who specializes in long-term care insurance in New Jersey.  But, before you meet or speak with that expert, you owe it to yourself to be armed with a basic understanding of long-term care insurance.

Types of long-term care insurance

Your premium and benefits package will depend on the type of policy, your age and the time period for coverage.  The younger you are, the cheaper the premium, though understandably you will be paying those premiums for a very long time.  The policy cost also is determined by your option of the location of the service of long-term care, i.e. in-home, at a nursing home or similar long-term care facility providing professional care, and, whether that care will be basic or comprehensive, as defined by the policy.

Do pay attention to details, such as the limitations of the individual to perform everyday functions as it relates to the medical condition.  Your policy should also contain an inflation protection feature.  This is important to ensure the premiums do not increase as the cost of long-term care increases.  Just like any type of insurance, be it home, vehicle or health insurance, you should be mindful of the deductible.  As you know, opting for a higher deductible affords you a cheaper premium, but, if the high deductible is prohibitive and would deplete a good portion of your savings, it might be better to just bite that proverbial bullet and opt for a lower deductible/higher premium instead.  You should ensure that the coverage in your long-term care insurance provides coverage on a daily basis and it is not for a finite period of time of coverage.  What if you discover that your policy plan is only for a certain amount of years and you must then dip into your savings and/or assets for the remaining time of your stay at the long-term care facility?  Be sure to read the fine print of the policy.

You should be proactive

The time to purchase your long-term care insurance is when you are young, but, it is better to have some sort of long-term care insurance in place, no matter your age.  No words are truer than this quote by Louis Pasteur:  “fortune favors the prepared mind”… there is never any harm in planning ahead, but, you should be mindful that such long-term care insurance might be denied if you are already debilitated by a condition.  To completely understand the best policy to protect you and your family, no matter what the future will hold, consider a consult with an insurance broker who specializes in long-term care insurance.

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