Long Term Care Insurance
Long Term Care Insurance is designed to provide benefits to individuals for extended care due to an inability to perform certain activities of daily living or cognitive impairment (such as Alzheimer's) . These type of benefits are typically not covered a traditional health insurance or Medicare policy. According to the U.S. Department of Health and Human Services, about 70 percent of individuals over age 65 will require at least some type of LTC services in their lifetime.
Why you may need long-term care insurance?
- The cost of full-time or even part time care can be very expensive and these policies can help cover the cost of care if you need assistance with daily living activities.
- Medical Insurance and Medicare are very limited in what they cover for assisting living or skilled nursing facilities.
- With improved medicine and science the general population is generally living longer, but may need assistance to continue to do so resulting in overall.
Types of Long Term Care Coverage
- Traditional LTC Coverage
- These policies are typically just annual policies that are renewable on a year by year basis that only pay if you ever need assistance with day-to-day activities such as bathing, dressing, eating, etc. There is typically a waiting period before the benefit starts with a maximum benefit that could be potentially be paid out to cover the cost of care. The premiums for these policies are not guaranteed past one year and the market has been unstable over a lengthy period causing many insurance companies to drop out of the long term care business all together.
- Hybrid Long Term Care Policy
- A newer and more flexible type of long term care coverage is a life insurance policy with a long term care rider that provides a combination of life insurance with an accelerated benefit in the case you qualify for long term care. These types of policies can cost a little bit more because of the flexibility, but can also be a great benefit because they can guarantee a life insurance benefit in case you never actually need long term care.
What is the best kind of long term care coverage?
These circumstances can widely vary depending on the individual circumstances such as age, current health situation, cost of coverage, and your financial needs.
Every year you get older it increases the cost of insurance and if you have a health change it can effect your ability to get an affordable policy.
If you are young and healthy and you have a need for some life insurance the hybrid life insurance with an LTC rider is most likely the best way to go. If you are older in age or have a health issue and need to protect yourself from just LTC expenses than a traditional policy may be the way to go.
Smart Planning Pays off
Planning ahead and determining what option for your is going to be best for your is an important to do at an earlier age or before you have a health change that causes pricing to increase or become unaffordable.
Getting help from an independent insurance advisor that represents multiple companies to help determine what product may fit your need best is a great place to start. Contact us today to see how we can help!
Carlson & Associates proudly serves Gig Harbor, Tacoma, Port Orchard, Bremerton, Auburn, Kent, Puyallup, and the greater Seattle area. Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.