The Usefulness of Long Term Care Insurance
Long term care insurance pays for extended care that traditional health insurance, Medicaid and Medicare does not pay. If anyone needs a home health aide, assisted living care or nursing home, then this coverage can pay for it. In some cases you can get this coverage as a job benefit. If not available, then you can contact an insurance agency.
The policy is for the person specified in the paperwork. But you can buy additional policies for a spouse. You should check first because your spouse might have options through their own job.
When it becomes medically necessary, you file a claim to get help from the insurance company. You will have to prove that you are in need if long term care assistance. The insurance company determines how much you receive by calculating the policy amount up to the coverage limit.
Types of Long Term Care Insurance
Stand-alone comprehensive is the most common policy. You pay a monthly, semi-annual, or annual premium to keep the policy active. You can also create a policy that can be used for long term care or life insurance. But this is an expensive option, as it requires an investment of about $50,000 dollars to start. You cannot access the money unless you need it for long term care or your beneficiary is receiving it after your death.
Annuity is for long term care as well. It also requires a $50,000 dollar investment. The money must stay in the annuity or your long term care coverage ends.
You can also create a long term care insurance policy combined with disability. The funds must be used for disability before you turn 65. After you turn 65, the money will be for long term care.
Benefits of Long Term Care Coverage
The benefit of long term care insurance is you get help paying for your care needs. Without this coverage, you might not be able to pay for the care you need. Speak with an insurance agent for more information.