Is purchasing a long-term care insurance the right thing for you?
Some people choose not to purchase it because it costs a lot, or they don't know enough about it. While others want to be assured that they will be well taken care of.
WHAT DOES LONG-TERM INSURANCE MEAN?
Long-term care insurance covers the cost of long-term care which has to do with activities of daily living, such as eating, dressing, bathing or moving from a bed to a chair.
You might need assistance with these activities if you suffer from an injury, illness, mental deterioration, advanced age and frailty or stroke.
PROS AND CONS OF LONG-TERM INSURANCE
A knowledge of the pros and cons of long-term care insurance will help you decide if purchasing it is the right choice for you.
PROS
1. Long-term care gives you peace of mind: Knowing that you will have the necessary support you will need when you age can really ease your nerves. Especially if you tend to worry a lot.2. There is a huge possibility that you will require long-term care: Illnesses, injuries, strokes etc. may not occur but as long as you plan on getting old, you are likely to need long term care.
As we age, we become weaker and may not be able to carry out some necessary activities, so it would be nice to know that when you advance in age, you would have the funds to help you get support in carrying out these activities.
3. Paying out of your pocket for long-term care can be expensive: Long-term care is not cheap. The average cost of long term care is $255 per day or $7,756 per month for a semi-private room.
This is why insurance can be an excellent way to ensure that you are taken care of.
CONS
1. You might not be eligible: Most long-term care insurers require you to pass a physical exam before you can obtain insurance and about 15% to 20% are denied coverage.2. Finding out how much insurance you need is difficult: Long-term care policies do not always insure you. They only provide a fixed amount for a set period of time.
For instance, if you find a plan that guarantees benefits of $250,000, there is no guarantee that it will be enough. The reverse is true too: if you buy more benefits, you may not use them all.
3. Benefits may not be rolled out as you require them: Just like any other insurance, long-term care insurance has a period of elimination, or a specified period from an injury or illness to the payment of benefits. So if you enter a nursing home for two months, there is the possibility of you spending the whole stay without receiving benefits, based on your plan.
HOW LONG-TERM CARE INSURANCE WORKS
To purchase a long-term care insurance policy, you will need to apply and answer health questions. The insurer can request to see your medical records and interview you over the phone or in person.
You select the amount of coverage you would like. Policies usually limit how much you pay per day and how much you pay in your lifetime.
As soon as you are approved for coverage and the policy is issued, you can begin paying premiums.
When you need care and want to claim your insurance benefits, the insurance company will review your medical documents from your doctor, and may send a nurse to do proper evaluation.
Under most policies, you will have to pay out of your pocket for a certain period of time, before the insurer starts compensating you for any care. This period is called the "elimination period."
CONCLUSION
Long-term care insurance is a topic that can be hard to discuss, but it is important to have a good understanding of the pros and cons before making a decision. In this article, we've outlined the pros and cons of long-term care insurance so that you can make an informed decision and whether or not this type of coverage is right for you. We want to hear from you: have you ever purchased long-term care insurance? What was your experience like? Leave a comment below and let us know.