When most people think of buying insurance, they are prepared for the real possibility that they may never need the coverage, that one may never get in a car accident, have one’s home damaged or flooded or get sick and badly need health insurance. But, most of us would not think it wise at all to not have the above forms of insurance. In fact, many Americans buy boat insurance, travel insurance and even insurance for their pets. But, most Americans, something like 90% according to recent study, don’t have Long Term Care Insurance. And, the reality is that this type of insurance may end up being the most important of all when it comes to a financially secure and worry-free retirement. So, what is Long Term Care Insurance, what are the basic options and choices in plans and why do you need it?

Long Term Care Insurance is insurance to protect you and your family against the costs of long-term care services. These include everything from nursing homes to various assisted-living type facilities to in-home care. Adult day care and, more recently, certain types of remote-monitoring services are now sometimes included under long-term care. These types of care are expensive and not easily covered from savings or assets. So, why not let Medicare or your regular health insurance take care of these costs? Well, put simply, they don’t cover long-term care as the above-listed services are considered non-medical from the point of view of Medicare and health insurance. They are in the long-term care category and relate to assistance the basics of daily life such as eating, bathing and getting around. So, while interference with being able to perform these basic duties can be caused by an illness or injury, once the acute phase has passed, the condition is considered long-term care and is no longer covered. That’s when you need Long Term Care Insurance.

What are the basic options and choices in Long Term Care Insurance? Well, in a nutshell, plans can be somewhat complicated. But, the good news is that that means there are many options available that allow you to cater a policy to your current financial reality and your future long-term care needs. The basics involve such concepts as:

• Inflation protection: Probably the single most important thing to know about Long Term Care Insurance policies. You definitely some form of inflation protection to ensure that you are paid out benefits in tomorrow’s dollars, not today’s, as the cost of long-term care services is expected to rise dramatically in the coming decades.
• Elimination period: How long can you wait until benefits kick in? Do you have a relative or child nearby who can help you for a few months before you are admitted to a nursing home? If so, this can lower your premiums and get you a better overall deal on a policy.
• Benefit period: Put simply, how long your coverage will last. According to a recent study, 93% of all claims are for periods of around 3 years or less, so most people choose a plan that has a benefit period of at least 3 years. However, for more security, there are plans available with a lifetime benefit period that is unlimited.
• Maximum policy value: The total pool of money from which you can draw to pay for your care. This pool will dwindle or last longer depending on the type of care you choose.

These are just a few of the basic options and choices that come with Long Term Care Insurance policies. You’ll want to contact a professional like our agents here at LTC Tree so that they can walk you through the details.

At the end of the day, facing the reality of long-term care is something we all must do. We all hope to live a long life and have significant savings and assets accumulated by the time we reach retirement age. Those assets and your legacy are at extreme risk if you don’t have Long Term Care Insurance. So, start planning for your future and securing all that you’ve worked so hard to achieve for your retirement today. LTC Tree can help you find a plan that is right for you, no matter your age or financial status. If you’d like to learn more about our affordable Long Term Care Insurance policies, simply fill out our request form, and we’ll glad to talk you through the various plans and options. Thank you for reading today’s blog. We really appreciate it.