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What is long-term insurance and what does it cover?

If you are one of the 70% of Americans
who are expected to need care services, long-term care insurance can be a lifesaver.

Long-term care insurance can be super expensive and costs are expected to rise really fast in the next few years.

  how long-term care insurance works

Long-term care insurance can give you and your family peace of mind.

As life expectancy continues to increase, the likelihood of needing long-term care is also likely to increase.

In this guide I will share more information about what long-term care insurance is, what it covers and which companies offer the best insurance.

What is long-term care insurance?

"In Plain English," long-term care insurance is protection against the loss of being able to perform your daily activities.

Unlike traditional health insurance Long-term care insurance provides the help you need to carry out your daily routines, where health insurance is designed to treat medical conditions.

As we grow older, we become vulnerable to conditions that deprive us of our independence.

Lack of mobility, injuries, chronic medical conditions, Alzheimer's disease and dementia can make it difficult or impossible to perform "daily life", also known as ADL.

There are 6 ADLs that, if you can not perform at least two of them without assistance, qualify you to receive benefits from your long-term care insurance.

They are:

  • Eating
  • Bathing
  • Dressing
  • Caring for incontinence
  • Toilet paper (Getting on and off the toilet)

While neither of us wants to be in a situation where we do not can do only one of these things; the truth is that as we age, it will not become a reality not to be able to do any of these things.

Long-term care insurance is made easy.

Agents not required.

Get a quote and register online without talking to an agent. But we're here if you need us.

Impartial, expert advice.

Get impartial insurance training from licensed experts and also avoid dubious sales calls.

Coverage in a few minutes.

You can get long-term insurance coverage within minutes of receiving your quotes and applying.

What does LTC insurance cover?

Given the high cost of care and assistance (ranging from $ 52 to $ 280 depending on the level of care you need), it is probably worth paying the average annual premium of $ 2727

The coverage is divided into two main categories:

  • Home health care assistance
  • Residence in a nursing home or auxiliary member.

Most insurance policies sold today are very comprehensive. They usually allow you to use your daily use in a variety of environments, including:

  • Your Home
  • Break Care
  • Hospice Care
  • Nursing Homes
  • Adult Day Care Centers
  • Alzheimer's Special Care Facilities
  • Assistive Technology Facilities also called residential care facilities)

With you, a comprehensive policy will generally cover services such as:

  • Competent care
  • Assistance with personal care, such as bathing and clothing
  • Occupational, speech, physical and rehabilitation therapy [19659044] The price of assistance housing has risen drastically since the figures began to be tracked in 2003.

    Every year, these service charges are expected to grow from 1.8% to more than 7%. From 2019, it will cost an average of $ 90,155 to have a semi-private room in a nursing home.

    Do you want a private room? Now you see a six-digit price tag.

    On average, claims for long-term care insurance last two years or less, but 14% of the recipients need care for periods exceeding five years.

3 Best Long-Term Care Insurance Companies

Although the number of long-term care insurance providers has decreased from more than 100 to less than a dozen since 2000, you still have a variety of choices and premium rates vary widely. [19659002] We identified the three best long-term care insurance companies today, so you can narrow your search and choose the one that best suits your needs and budget.

Golden Care

As an independent agency representing top-rated operators, you can get the best coverage when shopping for Golden Care policies.

When you work with one of their agents, they match you with a company and a policy that suits your needs. Choose from big names like Blue Cross Blue Shield, Kemper, Aetna and more.

Features and Benefits

  • No Elimination Period
  • Reputation for Knowledgeable and Helpful Agents
  • Available Cost of Living Adjustments [19659058] Coverage with High Benefits at Reasonable Prices
  • Possibility to Pay Premiums in Monthly or Annual55 Installments Hybrid life insurance and long-term care insurance policies available
  • Available in all 50 states

LTC Resource Centers [19659052] LTC Resource Centers offer access to a variety of long-term care policies, including asset-based long-term care, which means you pay a single start-up premium.

There are several benefits to this method, including premiums that never go up and are eligible for reimbursement if you do not use your benefits during your insurance period.

Plans purchased through LTC Resource Centers are also equipped with a partnership program, which allows you to go on Medi lasts while "spending" your assets.

Features and benefits

  • Options to waive the elimination period
  • Sample prices available on the website
  • Inflation protection available with 3% and 5%
  • Refundable premium If you never use care
  • Shared benefits and survival available
  • Option to transfer premiums to a beneficiary
  • Option to "pay as you go" or finance your plan in advance
  • Flexible elimination period, including 30, 60, 90, 180 and 365 days
  • Hybrid Life Insurance and Long Term Insurance Policies Available

New York Life

As a household name in the insurance world, you can not go wrong with New York Life.

If you're on the fence whether you need coverage or not, use their interactive long-term care costing tool to see what your potential financial commitment will be.

Costs are broken down by state and region, so you get an exact picture of what the cost of care is for eight different services.

The list includes the hourly rate for home helpers, the price per visit for registered nurses and monthly and annual rates for different categories of care facilities and care facilities.

One of the main reasons why New York Life tops our list is their high financial strength.

It's no secret as long as Vårdförsäkringsbolagen feels the burns of lower interest rates (which prevents them from getting the return on investment on their premiums that they have become accustomed to), longer life expectancy and ever-increasing costs.

It's smart to think about an insurance company's financial strength, because if they go out of business when you need to make money on your insurance, you're lucky.

Given that New York Life has been around for 175 years and has maintained a solid financial strength, New York Life offers the greatest peace of mind.

Features and Benefits

  • A + BBB Rating
  • Group Rates Available
  • Inflation Protection Available
  • Alternative to "Pay-As-You-Go" or Financing Your Plan in Advance
  • Hybrid Life Insurance and Long Term Insurance Policies available

No matter which company you choose, you get excellent customer service and can find the long-term protection you need.

Long-term care insurance by state .

Why buy long-term insurance?

Wondering who needs long-term care insurance and whether you should consider it yourself or your loved ones?

The best ti I should buy this insurance before you need it.

If you wait until you are in urgent need, you will not receive approval for an insurance policy.

  What is Long Term Care Insurance

Still, if you start paying premiums too far in advance, you can waste money that you could use for retirement planning or a vacation you always wanted to take.

The ideal candidate for long-term care insurance will be between 50 and 65 years old.

Most companies require a health check or physical before you are approved, so it is wise to lock in a policy before your health deteriorates.

If you are optimistic about staying healthy, you may have to wait longer.

Waiting a little longer can potentially save thousands of dollars because the chance of filing a claim in the 50s is much lower than in the 70s.

89% of all LTC insurance claims were made by people over the age of 70, so the trick is to time your application so you can get lower rates and get approved.

You do not have to spend 20 years paying premiums for coverage you do not use. A long-term health insurance is a smart way to protect your savings.

Given how expensive daily help is, it will not be long before the average savings account is wiped out.

Would you not instead keep the estate in retirement or have something to leave for your heirs? [19659002] Before you decide that you can count on Medicare providing this coverage, remember that Medicare will only cover short stays and limited amounts of nursing and rehabilitation.

For long-term care you are alone.

Although there is state aid available in the form of Medicaid, the beneficiaries will have to hit the financial bottom before they become eligible.

Anyone with more than $ 2,000 in assets would not qualify for Medicaid.

So, to get government support for long-term care, you would have to spend virtually all of your savings and have nothing left to live on.

There are exceptions, called a state partnership plan, which we will explain in more detail later in this article.

Long-term care insurance is made easy.

Agents not required. [19659022] Get a quote and register online without talking to an agent. But we're here if you need us.

Impartial, expert advice.

Get impartial insurance training from licensed experts and also avoid dubious sales calls.

Coverage in a few minutes.

You can get long-term insurance coverage within minutes of receiving your quotes and application.

Costs for long-term care insurance

The cost for long-term care insurance varies widely, but there are some general rules to keep in mind:

  • Women's policies tend to cost more than men Because they live longer
  • The older you are, the more expensive your policy will be.
  • People with ill health will pay more for the same coverage
  • Married people's policies and common policies are less costly.
  • 19659124] Adding features to your insurance coverage will increase your premium.

According to data from Genworth, you can receive benefit coverage of $ 161 per day for an average of approximately $ 2727 in annual insurance premiums.

If you want to protect your benefits against inflation or if you want to reduce the waiting time to be eligible for benefits, you must add a rider to your policy.

Any additional riders usually increase the cost of your insurance.

Tax Benefits of Buying L-T-C Insurance

Do You Specify Your Taxes? If this is the case, you may be able to apply for your long-term care insurance as a tax deduction.

To qualify for this deduction, your total medical expenses (including this premium) must exceed 7.5% of your adjusted gross income.

How to buy long-term care insurance

The process of buying long-term care insurance is relatively simple.

The first step is to fill out an application (online is easiest) and then answer some questions about your health history.

Depending on the provider, you may need to talk to a doctor, either in person or by telephone.

When evaluating your options, consider your lifestyle and financial goals.

Do you want to pay more for coverage now to ensure you have the most choices for care and amenities?

Or would you prefer a more budget-friendly policy in exchange for sacrificing certain options and benefits?

Only you know the answer to that question, but a chat with a licensed insurance provider can also help you in the right direction.

There is also the potential to get a group discount by purchasing a plan through your workplace

These plans often have lower qualification standards, so it's worth checking to see if you have any health issues that may prevent you from getting an affordable policy.

We still recommend doing an independent search and comparing all your options.

Long-term care insurance by state .

Understanding State "Partnership Plans"

It is in the government's best interests of citizens to prepare for long-term care. To help with support, some states offer a "partnership policy."

These policies offer additional protection to policyholders by providing cost of living adjustments, which help protect your benefits from being eaten away by inflation.

policies also allow recipients to access Medicaid funding earlier than the traditional $ 2000 threshold.

As a result, people in need of long-term care could potentially qualify for Medicaid while retaining the bulk of their savings.

For example, let's say that your long-term care policy qualifies as a partnership plan.

Due to a chronic medical condition, you receive care from a full-time nursing home, which costs $ 95,000 per year.

If after two years you have used all your benefits, you must spend your assets up to $ 2000 to qualify for Medicaid.

However, a partnership plan allows you to have $ 97,000 in assets to be eligible for Medicaid ($ 95,000 cost + $ 2,000 Medicaid asset threshold).

Long-term care insurance is made easy.

Agents not required.

Get a quote and register online without talking to an agent. But we're here if you need us.

Impartial, expert advice.

Get impartial insurance training from licensed experts and also avoid dubious sales calls.

Coverage in a few minutes.

You can get insurance coverage for long-term care within minutes of receiving your quotes

Taking action

Think of long-term care insurance as an investment that you hope you will never need to use.

Now that you understand what long-term care insurance is how much it costs and how it works then you do not need to waste any time.

Getting an insurance policy should be a no-brainer and it's as easy as clicking here to get a quote or any of the buttons above and don't forget to compare prices.

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