Long Term Health Care Insurance
Although the United States is a nation that is aging at a rapid pace, many people refuse to think about the day when they or a loved one need care in the long term and, hence, no plan of how due. Others wrongly assume that Medicare or standard medical insurance policies cover the costs of services of long-term care.
This article provides an overview of secure long-term care, covering topics like the right time to buy coverage and what to look for a policy.
Issue
1. Insurance Long Term Care
2. What is the safe long-term care: and what is not
3. To buy a secure long-term care: guidelines for consumers
1. Insurance Long Term Care
The ageing of the United States is one of the key factors that contribute to the growing interest in insurance long term care (LTC). According to data from the Bureau of the U.S. Census, the average age in the U.S. ha ido aumentando and the last of the 76 million people born after World War II 65 years to meet by 2030 - reaching double the elderly population of the United States.
The Department of Health and Human Services U.S. estimated that approximately 40% of people aged 65 or older have at least 50% during her lifetime risk of living in a home for the elderly. For its part the security partnership of Health in the U.S. . calculates that by 2020, 12 million people will need long-term care.
At a time when the average cost of a private room in a nursing home is $ 74000 a year, insurance of long-term care can be a solid investment for individuals who own property who want to protect or who do not want to become a financial burden for his family.
But unlike other types of insurance, in which policies are standardized or are fairly simple, the policies of long-term care are complex and vary widely from each other.
Virtually the policy of each company differs on issues such as who qualifies for coverage, when the owner of the policyholder can begin receiving benefits, the amount of coverage, the term of the policy and the cost of the premium.
Before we begin to compare policies according to its particular characteristics, it is important to take into account some of the basics.
2. What is the safe long-term care - and what is not
The secure long-term care is not a life insurance, disability insurance, insurance or health care. Instead, the LTC includes a variety of services for nurses as well as social services and rehabilitation for persons they need continued assistance due to a chronic illness or disability.
LTC insurance can be used by anyone, at any age, who suffers an accident or a debilitating disease, but the most commonly used those seniors who require help with their basic physical needs such as bathing, dressing or eating.
In most cases those who need long-term care have to foot the bill themselves. Neither Medicare nor Medicare supplemental coverage, also known as Medigap insurance, policies or standards of health insurance cover completely the long-term care.
That leaves us to most of us with two options when we have to face these expenses: pay our own pocket or rely on private insurance for long-term care.
Most of the policies of LTC cover "costs incurred" or indemnity policies, and pay a fixed amount of dollars on the cost of daily care. The policies tend to cover a variety of environments of care, including nursing homes, health care at home, assisted living residences and care centers for adults.
Because the cost of premiums increase depending on their age at the time it is part of the plan, the younger you are when you buy a policy, will lower the premium you pay over the life of the plan.
Once you buy a policy, the premiums generally remain the same every year, so experts recommend that people start thinking about long-term care long before need. Because the insurance premiums of long term care are based on the age at the time of purchase, the younger you are when you buy the policy, the less expensive it will be.
3. To buy a secure long-term care: guidelines for consumers
When you buy insurance for long-term care, make sure you take your time and compare characteristics of different policies. The state insurance regulators and the American Council of Life Insurance, as well as the American Health Care Association, we recommend pay particular attention to the following characteristics.
Reputation and legitimacy of the company.
Make sure the insurance companies that interest you have leave their state and they have favorable financial ratings agency security assessment of prestige known as AM Best Company, Duff amp; Phelps, Inc. All rights reserved., Standard & Poor's Insurance Rating Services and Moody's Investor Services, Inc. All rights reserved.
Parameters of coverage.
Policies differ regarding the types of services they endorse. Some cover the care of nursing homes and other cover care custodian or staff in a variety of environments such as homes for assisted housing, adult care centers, and health care at home. Other services include a combination of . Be sure to choose a policy that meets their needs satisfactorily.
Payment of benefits.
How the policy pays for daily care in a particular environment (for example, nursing home, assisted living residences)? How the policy pays for services (for example, a fixed amount per day, as reimbursement for the care of up to a maximum daily care? Does the policy limit of a maximum lifetime? If so, what is the maximum for nursing home care? for health care at home?
Waiting Period.
How long the insured must wait before he or she can begin receiving benefits? Most policies range from zero to 180 days. Generally, the longer the waiting period, the lower the cost of the policy.
Eligibility.
Do you use the policy benefits certain drivers to determine when you will be eligible to receive benefits? These drivers could include activities of daily living for which the insured needs help as bathing, dressing and eating; cognitive disability such as Alzheimer's disease, or a necessary pre stay in a hospital to receive nursing home benefits.
Protection benefits.
The policy should include an inflation adjustment clause to ensure that benefits are maintained in accordance with the rising costs of care. Determine what is the rate of increase and how often it is applied, and for how long.
The additional protection includes a clause "guaranteed renewable", which stipulates that the policy can not be canceled when you suffer age or physical or mental deterioration, and a benefit of non-confiscation, which ensures that a portion of their profits are still available if cancel your policy or defeat leaves so unintentionally.
Implications of taxes.
Most of the policies of long-term care that are sold today qualify for federal taxes, meaning that the premiums paid, as well as the extra expenses paid by you in your pocket for long-term care, can be applied on deductions of 7.5 of medical expenses contained in the federal tax code.
In addition, the benefits of long term care received are not subject to taxes until certain limits. Consult a tax advisor to learn more about the implications of taxes on insurance long-term care.
Because of the many variable factors involved in determining whether the coverage of long-term care is appropriate for you, it is important to investigate. Fortunately, there is a very comprehensive source of information available to consumers on long-term care and issues of health care associated with it.
A good place to start is the American Health Care Association.
Résumé
• The aging of the United States and increasing costs of health care that will follow, are the biggest factors contributing to the growing interest in secure long-term care.
• The demographic analysts predict that one third of all people who reach age 65 will need to go to a nursing home sometime in their lives.
• Today, the average cost of care of a private nursing home in the United States amounts to $ 74000 a year, making sure long-term care private investment potentially smart for people who want to protect their property and not become a burden on his family.
• In general, insurance long term care covers a range of services nursing home and personal care based on community for people who need ongoing assistance due to illness or disability.
• Neither Medicare nor Medicare supplemental coverage, nor standard health insurance covers the costs of long-term care.
• The costs of premiums increase as you get older, so the younger you are when you buy the policy, it will be lower than the premiums paid during the term of the policy.
Checklist
• Make sure you read and understand everything written in small print on any insurance policy for long-term care that you plan to buy.
• Investigate the cost of care centers in your area so you have an idea of how much coverage you may need.
• Find out if your employer offers extra coverage of long-term care as an optional benefit.
Before we begin
• Talk with your spouse, parents or adult children about the possible need to take your family insurance long-term care.
• Think about the level of care they may need. The costs can vary greatly, for example in a nursing home compared to care at home.
• Evaluate its financial capacity to provide care, both current and future.
• If you already have secure long-term care, review the documents to see exactly the type of coverage you have.
