Long Term Care Insurance
is one of the fastest growing forms of Health Insurance. With our fast paced society, a growing baby boomer generation
turning age 65, and the continual increase in the number of people with Alzheimer's, it is becoming paramount that people
prepare for the potential that they may lose all they possess if not properly prepared for the increasing chance that they
may need some kind of assistance as they grow older. Long Term Care Insurance can keep you from losing your assets if
you should become unable to care for yourself. As was the case in the past, children took care of their aging parents
in their homes when needed. However, today, parents can no longer depend on their children to care for them. Our
society demands that most married couples work in order to support themselves, requiring aging parent's children to be pre-occupied
with making a living for themselves and their families, leaving aging parents to look out for themselves.
Term Care Insurance was created to fill a need so there would be a place for the ageing to go when they become unable to care
for themselves. Long Term Care Insurance covers several different levels of care for the ageing.
Activities of Daily Living (ADL's)
In order to receive Long Term Care Insurance
benefits Long Term Care policies require that a person not be able to perform certain Activities of Daily Living (ADL's).
Activities of Daily Living can include:
on the insurance policy, benefits will be paid if you are unable to perform two or three of the ADL's. The quality
of Long Term Care policies is based on several things. One of them is the number of ADL's required in order to receive
benefits. The fewer ADL's required in order to receive benefits the better the policy. However, the number
of ADL's required can also affect price. The fewer ADL's required the higher the premium.
Long Term Care Insurance plans allow you to choose how long
you wait before benefits begin. This is called the elimination period. The longer you are willing to wait before benefits
begin, the less the premium. Elimination periods are usually available from 0 days wait and can be 30 days, 90 days,
100 days, and 180 days and even up to 365 days. The longer you are willing to wait the lower the premium.
Long Term Care policies also allow you to choose how long you want
to be covered. This is known as the benefit period. Benefit periods can run from 1 year, 2 years, 3 years, 4 years,
5 years and even lifetime benefit periods are available. Again, the longer you want to be able to receive care the higher
Types of Care
Long Term care policies
usually offer three major types of care:
- 1. Assisted Living
- 2. Nursing
- 3. Home Care
According to the National Association of insurance
Commissioners Long Term Care Shoppers Guide; in 2007 the national average assisted living facility charged an average of $2,714
per month for a one bedroom unit or $32,568 per year. Some residents pay a lot more, depending on their level of care.
national average cost of a Nursing Home in 2007 was about $5,430 per month or $65,160 per year
national average cost of Home Care in 2007 was about $16,000 per year (part time basic home care - home care aid three times
Of course, those charges are higher today.
Long Term Care policies may cover the following types of services. It is
very important that you know what services are covered and where.
- Nursing Home Care
- Respite Care
- Hospice Care
Care in your Home
- Services in an Assisted Living Facility
- Services in an
Adult Day Care Center
- Services in other community facilities
also many optional benefits that can be added to a Long Term Care Policy, such as inflation coverage to help meet the increased
cost of care in the future. Any options that you elect will add to the premium you pay.
Term care insurance should be considered very carefully in order to meet your needs, but at the same time meet your budget.
Professional Insurance Services can help you consider all these important aspects of purchasing Long Term Care Insurance.
Please give us a call and let us help.