Health care reform is one of the biggest topics in the news lately but Americans buy a whole range of insurance products these days. Car insurance, homeowner’s insurance, health, dental, life insurance, even pet health insurance. It is important to also examine another insurance product out there: Long term care insurance.
Assisted living and nursing home care is something that most people do not think about until they or a loved one require such care. Often the cost of this type of care can be shocking, running as high as $10-12k a month for nursing home care. Having said that, many people are even more shocked to find out that Medicare and private health insurance MAY only pay a portion of a 100 day stay in a nursing home and will not cover an assisted living facility.
What is long term care insurance? It is an insurance product that helps provide for the cost of long-term care beyond a predetermined period. Long-term care insurance covers care generally not covered by health insurance or Medicare.
Long term care insurance generally covers home health care, assisted living, adult daycare, respite care, hospice care, nursing home and Alzheimer’s facilities. However, just like any other type of insurance, long term care comes in many shapes and sizes. It is important to know what to look for. First, how strong is the policy? What is the daily benefit amount? It is often anywhere from $150-$300 which will certainly cover a range of quality of facilities. Next, how long is the policy for? Many policies are 3 years, but do you anticipate needing care for longer than that? What type of care does the policy provide? Does the policy include home health or assisted living care? How old are you right now? The price of the premium will depend on your current age.
There are many questions to answer when considering the purchase of long term care insurance. If you do decide that it is something that is affordable for you, it can be a great way to protect your assets during your lifetime. Doing so will enable you to avoid paying large sums of money out of pocket, and help you to avoid a possible Medicaid Lien.
A consultation with a qualified Elder Law attorney can assist you in considering the options available to you.
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