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Long Term Care Insurance

This type of insurance covers services for those who cannot perform regular activities on their own, such as eating, bathing, getting dressed, etc. This assistance can get very pricey, but the insured has the final say in what long‐term care they would like to receive.

Most regular medical insurance plans, as well as Medicare, will not cover the expenses of long‐term care. However, Medicaid, a government healthcare program, will, but only if you have already spent a large portion of your savings and assets.

What it Covers

Long-term care insurance will cover assisted living in your own home as well as other locations, and nursing homes and adult daycares.

When to Buy

Long‐term care insurance is normally considered when a person reaches age 70 or older, but healthcare providers may consider that age, when health may begin to deteriorate, too high of a risk to insure. Even if you are eligible, at age 70, you may end up paying thousands of dollars per year. It is better to purchase this type of insurance well before you reach this age; you never know when your health will begin to decline.

Other Things to Consider

You can opt for long‐term care insurance that will cover nursing, home care, assisted living, and more, or choose only the ones that you really need. Some types of policies will even cover a relative or close friend to care for you.

Choose a benefit period that is right for you; whether from 2 years to 6 or the rest of your lifespan, ensure that it is what you want and what you can afford. In addition, there is a daily or monthly benefit, based on the amount of money your insurance provider is willing to pay for each day or month you need long‐term care. If your healthcare costs exceed your benefit, you will need to pay what is left over out-of-pocket.

During the time of your waiting, or elimination, period, you are required to pay all of your expenses for your long‐term care out‐of‐pocket. It could be no time at all or 3 months; the longer it is, however, the less your premiums will cost.

If you were to purchase and add inflation protection to your policy, you will protect yourself against the annual rise of costs for healthcare, whether you want it later or automatically when your coverage is set to increase. Inquire about this helpful policy to your insurance provider.

Policies that have a non‐forfeiture benefit on them will pay for your care regardless of whether you pay your premiums or not. It can, however, add from 10 up to 100% to your premiums if you get it.