Long-Term Care Insurance Basics
What Is Long-Term Care Insurance?
Long-Term Care Insurance is an insurance policy that is obtained to pay for covered long-term care services that an individual or couple might need in the future.
The policy may pay for all or part of the expenses incurred while receiving long-term care.
These policies are usually purchased by people who do not expect to qualify for Medicaid to pay for their long-term care expenses and who are alarmed by the high and continually increasing costs of self-paying for their care.
How Can Long-Term Care Insurance Help You?
To protect the retirement savings you've worked hard to build
A costly long-term care could deplete the retirement savings you and your family need to maintain your retirement lifestyle.
To make it easier for your family
Family wants to help. But they need help to be able to best help you. Long-term care insurance proceeds allow your family to augment care they provide with professional care, when needed.
To remain in your home to receive care for as long as possible
Long-term care insurance can help you remain in control so you can receive the care you want to receive where you want to receive it.
Long-Term Care Insurance Policy Features
Once you’ve decided to request a quote or to purchase a long-term care policy, you will need to make some choices about how your policy will be designed. You will select the amount of your policy’s benefit, the length of your elimination period, and the length of your benefit period. You will also have the option to include an inflation benefit. For details about these terms, please click on the tabs below:
Some insurance companies offer a monthly benefit and some offer a daily benefit. You can design your policy to meet your long-term care needs by picking a benefit amount that will cover your long-term care costs should you need care at some point.
Most people look at the average cost of nursing home care in their area and insure all or part of those costs.
All long-term care policies have an elimination period. The elimination period is the number of days at the beginning of your care that is not covered. The elimination period is a way to help control the costs of your policy.
The shorter the elimination period, the higher the cost of the insurance policy because the insurance policy would need to begin paying benefits earlier. Conversely, the longer the elimination period, the lower the cost of the insurance policy because the insurance would begin paying benefits later in your period.
For your benefit, the shorter your elimination period, the sooner you would begin receiving benefits in the event you need long-term care.
The benefit period of your long-term care insurance policy is the amount of time benefits would be paid for your continuing care after your benefit period ends. Your choice of the benefit period is another way you can control the cost of your long-term care policy.
The longer your benefit period the higher the cost. The shorter your benefit period, the lower your cost.
Of course, to get the maximum protection for yourself, you would want to the longest benefit period possible as long as you can afford it.
The Inflation Benefit is optional. If you elect this benefit, it will increase your benefit amount every year your policy is in force. It could be many years, and maybe decades, between the time you purchase a policy and the time you need long-term care services, so you might want your policy’s benefit amount to be adjusted during that time to help keep up with inflation.
Order a Quote – Choose a Policy – Apply With Ease
After you have ordered a quote, I will request personalized quotes from my leading long-term care carriers. I’ll present the quotes to you in clear, easy-to-understand terms.
I respect that most people want to be presented with the necessary information to make their own, informed decision about what is best for themselves. I do not push a particular policy.
When you’re ready, applying for a policy is simple and easy. I can complete your application in person, by mail, fax, or email, whichever you prefer. I’ll communicate directly with the insurance company to make it as convenient as possible for you.
Policy Service – Policy Reviews – Updates
After helping you choose and obtain your new disability insurance policy, I’ll provide fast, responsive service whenever you have questions or concerns about your policy.
I’ll invite you on a regular basis to review your policy. Regular reviews allow me to remind you about the valuable benefits in your policy and to confirm that your policy continues to meet your needs.
If and when your circumstances change enough to warrant changes in your long-term care protection, I’ll be there, just as I was at the beginning, to help you make the appropriate changes.
Tax Breaks and Incentives for Long-Term Care Insurance
Download this valuable guide to learn more about available tax breaks and incentives for long-term care insurance.