Longterm Care Insurance

Individuals and family members who suffer from disabilities or chronic illnesses may encounter the need for specialized insurance policies. As family members age, you may be concerned that the insurance available for your loved ones is not sufficient. But longterm care insurance can help families by providing coverage beyond medical or nursing care. This type of insurance pays for services that otherwise would be extremely costly and not covered by traditional insurance policies.

Why you might need it

While everyone's health situation is different, and your loved one's condition might not be serious right now, it's important to think about the future and prepare. Remember that seniors are living longer and will require several more years of care than did seniors years ago. Healthcare costs for seniors can ruin a family's finances if there is no preparation. Government assistance through Medicare or Medicaid may not provide enough coverage and are of certain conditions. This is why longterm insurance may be a valuable option for your family.

Coverage details

While long-term care insurance policies may differ slightly from insurer to insurer, they generally all provide the same basic forms of care. Be sure to review the details of a policy proposal before deciding on it. You also may want to seek out competitive quotes from several different insurers to verify that you're receiving the most comprehensive coverage for the money. Among the common services with longterm care insurance are:

• Daily assistance for tasks such as bathing, dressing, cleaning or eating.
• Assisted-living services for residential care centers. Coverage may include meals, healthcare and basic assistance.
• In-home nursing services.
• Nursing-home care.

Issues to consider

Too often, families look into longterm care insurance late into an illness or chronic condition. Instead of waiting until your loved one is in his/her 70s or 80s, prepare for their aging process early. Remember that waiting to take out a longterm care policy could result in much higher premiums. It could be helpful to look into your options early.

No matter your family's current situation, you should prepare to financially cover the costs of healthcare over time. You may want to start saving now for the costs of longterm care insurance.

When reviewing a prospective policy, be sure to look over the coverage. If it is confusing, ask questions before taking out the policy. Take the time to review the actual issues that are covered, the daily and monthly benefit provided by the policy, whether there is a waiting period for the policy, if it has any inflation protection and the complete benefit period of the policy. This will help you understand the comprehensive nature of the long-term care insurance coverage.

Any long-term care insurance policy should automatically renew when you pay the premium, cover pre-existing conditions that you disclose, cover dementia, cover home care or nursing-home care, and provide the right to downgrade the policy if the premiums become too expensive.