What You Need To Know About Long Term Health Insurance
Due to the eventualities that the future brings, it is essential to have long term health insurance. Even though the future is very unpredictable, some things are a given. We know that our health fails as we grow older. At a certain time in life, you may need long term care. There are unexpected costs that come with long term care. It helps learn about the options available for protecting the people and the things you hold dear.
With so many Americans living longer than ever, everyone should have a plan for long term care. Living longer means that you will need extra help with everyday activities. Long term health insurance covers more than your health insurance. It also covers reimbursement for services needed to help you maintain your lifestyle as you age.
The insurance cover also helps cover illness, cognitive impairment, and other conditions that make life challenging. There are many benefits associated with long term health insurance.
What Is Long Term Health Insurance?
Long term care insurance (LTC or LTCI) is an insurance plan that helps pay for the costs associated with long-term care. Long term care insurance covers care that is not usually covered by health insurance, Medicare, or Medicaid.
The individuals who require long-term care are not necessarily sick, but they cannot perform the normal activities of daily living due to old age or declining health. These people who need long-term care cannot dress, bathe, eat, go to the toilet, get in or out of bed, and walk.
Although most people who require long-term care are old, age is not a determining factor in needing long-term care. Many people are not old, but still require long-term care services in. But as people age, more and more of them require help with everyday activities of daily living. Some require close supervision due to severe cognitive impairments.
The impact of long-term care is felt more by women than men because women live longer than men, and they more often become caregivers to others. Getting long term care insurance will relieve your loved ones the burden of taking care of you as you age.
What Are The Benefits Of Long Term Care Insurance?
The following are the benefits of taking long-term care insurance.
- It is a whole sum cover that caters for home care, assisted living, adult day care, hospice care, nursing home, and Alzheimer’s facilities.
- It pays for home care from the first day it is needed.
- It pays for a visiting or live-in caregiver, companion, housekeeper, therapist, or private-duty nurse 24/7.
- It helps to cover out-of-pocket expenses, which safeguard the savings of any individual or the family.
- The premiums paid may be eligible for an income tax deduction.
Types of Long Term Care Policies
Acquiring long-term care is becoming common in the USA and the cost of premiums paid for this coverage has increased drastically. The cost for LTC coverage increases when you wait until retirement age; however, you do not need to wait until retirement to get LTC coverage.
In the US, there are two types of long-term care insurance policies that are offered:
These are the most commonly offered policies in the US. Traditional policy premiums are paid continually. If the policy is not utilized, the premiums are returned.
Combination or Hybrid Policies
This policy combines both life insurance with long-term care insurance. There are two types of long-term care policies offered: Tax qualified (TQ) and Non-tax qualified (NTQ). The TQ requires that a person requires care for at least 90 days and that he/she cannot perform two or more activities of daily living without substantial assistance.
The Non-tax qualified (NTQ) often include a trigger known as the medical necessity trigger. To qualify for this cover, a doctor certifies that the person needs care for any medical reason, and the policy pays for it. The non-tax qualified policies available for sale are few; hence they are not very popular in the US.