Thoughts on Long Term Care Insurance Policies
With so many types of long term care insurance policies to choose from, how can one pinpoint which one is right for his future health care needs?
Personally, I think a person should know his financial limits first before he invests in a long term care insurance (LTCI) policy because it is not an affordable investment. Important investment, yes, but not affordable.
Most people who put their money on LTCI have a good number of assets and properties to boast; things which they have acquired through hard work in hopes of having these passed on to their children once it’s time for them to leave this world. In a way, suffice it to say that these people can afford a year’s stay in a nursing home, but not beyond that and so they purchase LTCI policies.
If you don’t own a single property and your only source of income is your monthly salary from your employer, you should have secured an LTCI policy while you were still in your 30s, or perhaps 20s, as the annual premium of policyholders in this age group is lower.
Wouldn’t it be great to just pay $480 every year for your comprehensive LTCI policy? You’ll barely feel this amount coming off from your paycheck, but an annual premium that is over $3,000 will naturally weaken you and make you feel helpless.
Everybody deserves the right to plan his future health care needs but those with limited assets should apply a raw idea as opposed to obeying what has been advised time and time again by LTCI experts.
Different Types of Long Term Care Insurance Policies
Even though it has been written many times that buying an LTCI policy too young is not advisable as this will subject one to longer annual premium payments, members of the generation x know better.
They don’t mind maintaining their policy’s annual premium which is less than $500 rather than shell out $48,000 annually for in-home care or perhaps $192,000 if they are expecting to receive care 30 years from now, as LTC costs are expected to increase fourfold by that time.
Reimbursement policies are popular among young LTCI buyers because these are cheaper than other kinds of LTCI policies. With a reimbursement policy you will receive from your insurer your actual expenses on care.
Not very ideal for in-home care, as reimbursement LTCI policies stipulate that you have to present official nursing home receipts or hospital bills before you can claim your benefits. Home health aides do not practice the issuance of receipts so most people in the home care setting prefer indemnity policies.
Indemnity LTCI policies are the exact opposite of reimbursement policies. With the former, expect to receive your policy’s maximum benefit amount regardless of your actual expenses for care. This type of LTCI policy requires a bigger annual premium as a policyholder gets to be in full control of his insurance benefits.
Meanwhile, policies under the partnership program are most suitable for people who wish to protect their assets from being spent down should they apply for Medicaid, and from possible estate recovery.
Go through these types of long term care insurance policies and once you have decided which one to buy, it won’t hurt to get a second opinion from your family and friends.
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