At some point in your life you start to realize that you?re not going to live forever, because you?re not as young as you used to be. This is an uncomfortable reality we all must face, and one day we may have to admit that there could come a time when we are no longer able to get through life without some type of assistance. You don?t want to be a burden on your kids, but you also know that paying for these types of services can be a challenge.
Long term care insurance is designed to cover the cost of any services that provide assistance with any ?activities of daily living? (ADL), such as bathing, eating, dressing, and other activities that one performs throughout the day.
These types of services can include:
- Nursing home care
- Home health care
- Assisted living
- Respite care
- Hospice care
All long term care policies?offer the same benefits, but they can differ in how they pay out existing claims. So, it?s important to be informed about the different types of policies. That way, you can choose one that?s right for you.
There are three different types of long term care policies:
- Indemnity: These types of policies give you the most flexibility on how you can use your benefits. If your expenses for the period are less than the maximum limit, you have the option to use what?s left over for whatever you wish. You can use it for things like additional medical expenses, groceries, or you can add it to your savings.
- Reimbursment: These are the most common types of long term care policies. They only pay the exact amount of any costs that are incurred for the period. If the expenses are less than the maximum limit, the remainder gets carried over to the next period.
- Partnership: These types of policies work in collaboration with the state. They can allow you to qualify for Medicaid without having to meet their income and asset requirements. This could come in handy, because you don?t have to bankrupt yourself to get the care you need.
With so many different options available, there?s no doubt that getting the right kind of long term care policy can be a difficult decision. So, it?s important to talk to your agent to find one that?s right for you. Ask questions and make sure you?re informed about the different options you have available.
Long term care insurance is not for everyone. So, it?s important to know when and even if you need it. If you?re income is limited, you might be better off trying to use Medicaid for all your long term care needs, but if you already have a significant number of assets, then it probably won?t make much sense, either. Long term care insurance seems to be more suitable for middle-class folks, as they are still living comfortably but are still on the threshold of losing everything they have.
The bottom line is that you want to be prepared, because you never know what life might throw at you. So, it could be to your benefit to get something in place that could help you cover the expense of long term care should there ever come a time when you would need it.