What services will long term care insurance cover?
Today, approximately 46 million people in America are over the age of 65. By the year 2060, that figure is estimated to double to 98 million people, with elderly individuals comprising 24 percent of the total population, according to the most recent Population Reference Bureau report. With each generation living longer than the last, it is imperative that you and your loved ones have a plan in place for your long term care costs. Our Tampa elder law attorneys examine the role of long term care insurance below.
Long Term Care Insurance Basics
Long term care insurance is a type of insurance policy that covers the costs of care when you have a chronic medical condition. Chronic medical conditions could include age related conditions like Alzheimer’s. Long term care insurance policies will generally reimburse you for care provided to you in your home, nursing home, an assisted living facility, or an adult day care center.
Long term care insurance typically covers an important gap in healthcare coverage. Your employer based health coverage will not cover daily or extended care services. Medicare covers just short stays in a nursing home or limited at-home care, but you will need to meet specific requirements. Long term care insurance covers those extended care needs that most other insurance options do not.
Factors to Consider When Purchasing Long Term Care Insurance
For many families, long term care insurance provides much needed coverage for services that could otherwise bankrupt a family. When purchasing a policy, you will need to consider the following:
- Your age and existing medical conditions: You will pay less for long term care insurance if you are young and healthy. If you are older or have a serious preexisting condition, you should anticipate paying more or potentially being denied coverage.
- Premiums: While policies vary, most of the time your premiums will increase over time. You will need to ensure that you can pay the premiums even when your income reduces in retirement, as failure to pay the premiums will result in cancellation of the policy.
- Your savings and investments: Long term care insurance is not the only way to save for long term care. Your elder law attorney can examine your savings and investments to provide you with an overview of your long term care options.
Contact an elder law attorney to find out more about long term care insurance. Now is the time to plan for your future and care needs. Get started today by meeting with an elder law lawyer well versed in the needs of aging Americans.