The 411 on Long Term Care Insurance
It is true that many are living longer in this modern era and, for most, this is good news. However, it also means that it’s likely a large number of retirees will certainly require some kind of professional care as they reach the sunset of their lives. This kind of care is costly and most retirees living on a fixed income will not be able to find the funds for it. This is why long term care insurance is such a vital consideration for many.
Long term care insurance is exactly what it seems, namely a vehicle that will greatly assist one in paying for long term care. This can be assistance for in-home or even nursing home care. It is a variation of supplemental insurance that many companies offer to their employees in their benefits package.
Long term care insurance coverage is a great move for just about anyone these days, with life spans being extended due to medical advances. This plan, however, is especially helpful for those who aren’t particularly affluent or who will not have the benefit of family to help them in their hour of need.
In general, long term policies will pay out a pre-determined daily or monthly dollar amount for care that is within the purview of the policy details. This can include, for example, care that is provided in a nursing home setting or care that is provided at home by a home health medical professional. Some policies will also compensate the policyholder for any changes they might need to modify the home for access needed due to a disability, like wheelchair ramps and/or rails for your bath tub or shower.
Good long term care insurance will normally come in two main configurations. There is stand-alone care insurance or care coverage that is an add-on (aka ‘rider’) to an existing insurance policy. Stand-alone policies function similarly to other insurance policies with the policyholder paying his or her premiums in order to ensure that the care they need will be paid for. Long term care benefits that are add-ons (or the aforementioned riders) to life insurance policies will function in a couple of different ways. They may offer an extended long term benefit flow in addition to a death benefit, or they can give what is known as a ‘living benefit’, which allows the policyholder to have access to the death benefit while still alive in order to pay for needed long term care.
The big benefit of long term care coverage is the peace of mind in knowing that you will be able to pay for any care necessary without having to deplete your hard-earned retirement assets.