Monday, December 19, 2011

The Benefits of Long Term Care Insurance

Long term care insurance is a type of insurance that will cover you if you become ill and can no longer take care of yourself. This long term care could consist of someone coming into your home to care for you or it could provide you with the coverage you need to live in a group home setting. These situations are not always covered by Medicare or traditional health insurances.

When to Buy Long Term Care Insurance
If you are interested in purchasing long term care insurance, it is best to shop around. There are many internet sites that will give you free online insurance quotes. It is best to not only compare rates but also the benefits that are covered. Don't be afraid to ask questions, you have to make sure you get a policy that will cover what you want. Many people make the choice to purchase long term care insurance while they are in their early 60s. Premiums will be cheaper the younger you are, but once you have purchased a policy, the premiums should not be raised because of your age.

Who Can Purchase Long Term Care Insurance?
A relatively healthy person between the ages of 18 and 84 would have no problem obtaining long term care insurance. Many insurance companies will not sell you a policy if you are already accessing long term care, have Alzheimer's disease, AIDS, or a variety of other pre-existing conditions. If one insurance company denies you benefits, do not give up; another may have a plan designed for you.

Choosing the Correct Coverage
There are many choices that you have to make when purchasing your long term care insurance. These are all important things that need to be considered before you purchase your policy. The maximum daily benefit amount will be the amount that your insurance will pay for a day of care. This can range from $50 a day to $500 a day. You will also need to choose a benefit period, this is amount of time you will be able to use your insurance benefits. You can typically choose from one year up to five years of long term care insurance coverage.
Another important decision is the amount of your elimination or deductable period. This will be the amount of time you need to receive long term care before your insurance will kick in. Your elimination period can be anywhere from 0 days to 100 days. The longer your elimination period, the higher your out of pocket expenses will be.
It is also important to take inflation into account. You can purchase an additional inflation rider. This will increase your dollar amount of insurance on a yearly basis. This is recommended for those who purchase their policy at a younger age.

Coverage Limitations
As with any insurance policy, not everything is covered. Some basic exclusions include, but are not limited to, care for services needed as a result of an attempted suicide or self inflicted injuries, alcoholism or drug abuse, or care that is provided by an unlicensed relative. Reading all the fine print in your policy is necessary to ensure that you have the coverage you want and need.
Guest post from Bailey Harris. Bailey enjoys writing about health, insurance, finance, and related topics.  

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