Why You Should Buy Long-Term Care Insurance
Dino C. Gavanes, CIC
Village Trustee at Village of Itasca, Illinois: Financial Advisor with Equitable Advisors
Why long-term care insurance?
It might be hard to imagine, but chances are you'll need some personal care assistance taking care of yourself later in life. The big question is: How will you pay for it? Savings? Children? Government assistance?
Purchasing long-term care insurance is one way to properly prepare for your future and pay for services you may need at a time when you are unable to be fully independent. Long-term Care Insurance pays for a variety of services and support to help meet personal care needs over an extended period of time. It’s a policy that helps cover the care, you need when you have a chronic medical condition, disability, or disorder. This includes assistance with routine daily activities, like bathing, dressing or getting in and out of bed. Most policies will reimburse you for care given in a variety of places such as: your home, a nursing home, any assisted living facility, or an adult day care center.
Today, long-term care insurance policies have a variety of features and benefits so you can customize a policy with options to fit your financial needs and lifestyle.
Features to consider
- Daily Benefit Amount: This is the maximum amount a policy reimburses on any day that eligible Facility Services and/or Home and Community Based Services (HCBS) are received.
- Benefit Period: This determines how long your long-term care insurance policy will provide benefits.
- Elimination Period: This is the number of days that you must receive either facility Services of HCBS before reimbursement begins under the policy.
- Total Benefit Amount: For the most traditional Long-Term Care policies, the Total Benefit Amount available over the life of the policy is determined by your choice of Benefit Period and the Daily Benefit Amount.
Why you need it & what it covers
Purchasing long-term care insurance can help you have peace of mind. You’ll know that if you become ill, you can afford the care you need. Plus, your kids won’t be burdened with huge payments for your care. Don’t make the mistake of believing Medicare will cover long-term care costs. It does not. And while Medicaid—the government program designed for people who truly don’t have any money—will cover long-term care expenses, it should never be your first choice.
What long-term care insurance covers:
- Nursing home care
- Assisted living facilities
- Adult day care services
- In-home care
- Home modification
- Care coordination