What to Know About Long-Term Care Insurance

You can’t get by in modern American society without insurance. Whether it’s medical insurance, home insurance, dental insurance, life insurance – there seems to be a group of insurances that is commonly expected for most people to have. So why doesn’t long-term care insurance get brought up as much?

Who Needs It

At its most basic level, long-term care insurance is for anyone who may need assisted living for a period of more than three months. That can include residency in an assisted living home, in-home hospice care, or related circumstances. Generally speaking, long-term care insurance is needed by the elderly – although it can cover those who have disabilities as well (not to be confused with disability insurance, which likely does not cover long-term care). Everybody has loved ones who are nearing the final years of life. That is a difficult time that nobody will be able to avoid, so it’s best to have a plan to help you. Long-term care can be quite expensive for those without insurance, and only the most destitute will be covered by government Medicaid.

It Covers Additional Medical Costs

You might assume that long-term care insurance would cover the absolute minimum relating to a given patient’s circumstance and need for care. Thankfully, this is not the case. Long-term care insurance actually extends a little bit outside the realm of strict care and includes some costs of medical procedures as well. This is the case when it comes to disability, chronic illnesses, or certain injuries. It also can extend to cover physical rehabilitation and occupational therapy. Thus, depending on your circumstances, long-term care insurance might be a better option for you than the expensive and all-encompassing medical insurance plan. Staying close to your doctors ensures you get the best care in retirement.

Varying Costs

Like all insurance plans, there are various subtypes of many different kinds of coverage. Other factors will also affect the cost: the age of the person who the insurance is for, the set limit on how much the insurance will pay annually, the set limit on how much they will pay total over a lifetime, other benefits or details that you wish to contractually include, and more. As you plan your budget currently and as you plan your retirement in the future, make sure to include long-term care insurance in your calculations. The older you get – the more important it becomes to have.

Long-term care insurance is technically optional. You don’t legally have to have it. However, it is a good idea to create financial backup plans for yourself in the case of an emergency. Insurance is a great way to achieve just that – so figure out if long-term care insurance is important for you or a loved one the next time you budget.

Check out this article on why you should have life insurance even with no dependents !