What IS long term care insurance?
The choices that determine IF and WHY long term care insurance is for you
Health insurance alone can be a daunting subject. Add to that the potential need for long term care and topic can become daunting. Let’s look at some points that may help you determine IF or WHY to consider this particular insurance.
But I already have health coverage. Why do I need long term care insurance?
Many Americans have already taken advantage of the coverage provided by their employers or have purchased health coverage directly via “the Marketplace”. While we commend those who’ve wisely done so, we also urge routine reviews of your policy with a qualified long term care insurance professional. As with any other form of insurance, health coverage comes in many different tiers of cost and service. At some point, many Americans will find themselves carrying the burden of some type of deductible for health care. It’s a wise choice to understand the parameters of your policy.
What does my health insurance cover?
As the name implies, the length of time can often be the biggest determining factor. Your health care coverage likely has a set amount of time and payout for various expectable needs such as Yearly physical exam or a 3-Day Hospital stay. Many short-term needs are common throughout life. The vast majority of health insurance is geared specifically for those needs. But insurance carriers are keenly aware of a particular statistic. And this carries both good news and bad news…
Americans are living longer than ever.
The point at which someone chooses to buy long term care is critically important. We’ve seen many people express an interest only after the immediate need has arisen. While we understand the urgency at this stage, waiting creates a new situation which governs the premium costs:
#1 The older a person is or the more pre-existing needs that exist, the higher the premiums will be.
#2 In some cases these conditions may completely disqualify the applicant from coverage.
In this report from the CDC, Americans in 1980 had an average life expectancy of 70. But fast forward just 33 years and we find that in 2013, the average life span has become 81 years. At first glance this may not seem like much. While many are living healthier lives in general, more years can often mean more care needed at a time of life where active care was already expected.
We’re thankful to see more seniors, living longer and enjoying family and productive lives. And being prepared for the potential need for care is part of WHY you may want to consider the need for long term care insurance plans.
Filling the gap
Due to the mushrooming cost of health care over the past 50 years, coupled with an average longer life span, this is an excellent question. And the answer is, “It depends…” Because there are so many plans available based on personal income and personal choice, “what’s covered” can be difficult to define. As stated earlier, there are limits to nearly all versions of health insurance. In the event that those insurances have met their cap and the insured person still requires care, coverage live Medicare and Medicaid can be included. But even these have their limitations. A personally purchased long term care insurance policy can cover the other expenses which can arise from a drawn out need for care. In our opinion, because long term care has the potential to consume an individual’s saving as well as be emotionally draining on family and care givers, planning ahead is crucial. One of the greatest gifts you can give your family is planning for these eventualities. Situations where this kind of care are often stressful enough without the strain of financial burdens they can cause
Will you “out live your funds”?
Age is not the only driver for long term care. Injuries, and illnesses with extended recovery periods can also create situations of personal strife. For more information on the coverage and cost for long term care insurance policy, Contact us here.NJINSURE.com looks forward to serving you.