Not all elderly need long
term care insurance, but it does not mean everyone should overlook this
protection during their retirement years. The recent survey and studies on the
cost of care in the United States are upsetting, giving the impression that
people would suffer paying for exorbitant LTC services throughout their senior
life. Seniors could stay in nursing homes and other LTC facilities for the
average span of two years, while those with chronic health issues and cognitive
disorder would take five and more years of stay.
Most long term care policies offer numerous features and options of services that consumers
find difficult to select and understand. The following are what most LTCi policies
cover:
The
Daily Benefit
This refers to the amount you wish to receive on a daily
basis, and it has direct effect to the price of your premium – the higher the
daily benefit means more expensive premiums. You must assess how much daily
benefits you need to avoid overpayment. Take time to research on the costs of
LTC services in your community or state to get a clearer picture on how much daily
benefits you will need.
The
Length of Benefits
The average stay in LTC facilities is two to five years,
so it is a wise decision to keep your benefits within that time period. However,
you must look at other factors such as your family’s longevity and health
history, and your personal health background as well. There are few companies that
offer unlimited benefits, but expect the premiums are extra expensive.
The
Elimination Period
Elimination period is commonly called a “deductible”
which is the same as other types of health and life insurance. These are
usually the number of days the policyholders, from zero to 365 days, would pay
for their care through out-of-pocket expenses. You reserve the right to choose
your elimination period depending on your financial capacity to pay the preliminary
costs.
The
Inflation Protection
This is the most important features in LTCi because it
increases the daily benefits. Some experts recommend 5% inflation to keep the
premiums controllable and the benefits increasing as much as possible. However,
you must assess yourself how much inflation rate you can afford, because it
will surely affect the amount of your premiums.
Guaranteed
Renewable
This means the policy shall continue provided that you
are paying the premiums and comply with the company’s policy. The coverage
should continue regardless when the company stops offering the same kind of
policies. This feature does not ensure
the premiums will not increase its rates or the premiums itself.
Levels
of Care the Policy Covers
Most LTC policies may
cover skilled and non-skilled care. Registered nurses and health care
professionals provide skilled care services such as supervision on medications
and therapy. Non-skilled services are generally assistance with activities at
home to help the patients continue their normal lives. This means policyholders
may enjoy the flexibility of using the benefits for nursing care and home care.
Some policies may include the coverage for
your family members or anyone you wish to provide care for you