long term care insurance
According to the U.S. Department of Health and Human Services, someone who is 65 today will have a 70 percent chance of needing long term care at some point during the remainder of his or her lifetime. Because such care is expensive, it’s important to plan for it. One of the ways to do that is with long term care insurance.
What is it?
Long term insurance is a type of supplemental insurance that pays for certain expenses relating to nursing homes and other forms of assistance when you are in retirement. This type of care insurance is something that you may be able to get through your employer as part of a package of workplace benefits, in which case the premiums may be lower.
Who is it for?
Long term care insurance is for seniors who have reached a point, either through the progression of aging or because of an illness or injury, at which they need help with daily living. However, it is a good idea to not wait to get a long term insurance policy until you are older, because premiums typically are much cheaper when you are younger.
How does it work?
A long term care policy pays for things such as living at an assisted living facility or nursing home or having an in home care provider. You typically must make a claim to your carrier and it must be verified that you qualify for that type of care. Your carrier may pay the bills for you or pay your benefits directly to you.
Types of coverage
There are basically two types of long-term care insurance. A standalone policy means the policy covers only long term care costs. A hybrid policy is a policy that offers both a life insurance component and a long term care component. With these policies, your benefits typically can be applied to both situations or either.
The main benefit of having a long term care policy is that it provides money to pay for care in old age that you may need, care that can be extremely expensive.