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Information on Long-Term Care Policies

Long-term care insurance is a type of insurance coverage that can provide you with financial assistance when you get older. This type of coverage is designed to provide benefits in the event that you have to go into a long-term care facility such as a nursing home. This is a separate policy that is unrelated to regular health insurance.

  1. Types of Benefits

    • When purchasing a long-term care insurance policy, you can decide what types of benefits you would like to receive. Some policies are set up to provide you with a daily benefit if you need to pay for long-term care. For example, it might pay $200 per day for a certain amount of time. Another type of benefit simply covers all of your long-term care expenses until a certain dollar limit is met. Some policies also help pay for long-term care equipment and home modification if you plan on having long-term care in your home.

    Long-Term Care

    • With this type of policy, you could potentially receive long-term care in a number of different contexts. Some people like to remain at home, and this type of policy will help them up with the money to make it possible. It could pay for a full-time caretaker as well as for the other costs associated with this process. Your policy could also pay for benefits when you have to move into a nursing home or a skilled nursing facility. Some policies also pay for hospice care and adult day care centers.

    Cost

    • If you are considering purchasing a long-term care insurance policy, the cost could be a significant factor in your decision. The cost tends to go up significantly as you get older. The best time to buy a long-term care insurance policy is before you reach the age of 40. At that time, the premiums are the most affordable for most people. If you wait until you reach the age of 60 or 70, you will pay significantly more for your premiums.

    Paying Premiums

    • With this type of policy, most insurance companies give you flexibility when it comes to paying your premiums. You can choose a payment schedule that works best for your situation. Some people prefer to pay premiums on an annual basis while others like to do it quarterly. Some insurance companies even allow you to make monthly payments to pay for your long-term care insurance. Once you start paying premiums, you will typically have to continue paying until you receive benefits. Some policies come with a cap on the number of years that you will have to pay premiums and then you receive a policy that is fully paid up.

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