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Thursday, October 23, 2014

What questions about LTCi should I ask?


All of us can agree that once we reach a certain age in our older adulthood, most of us are likely to need some form of long term care. The best way to secure it is by owning a long term care insurance policy.
Most people assume that LTCi is only good for paying nursing home costs. In truth, long term care insurance helps you pay for many forms of care costs and are not exclusive to covering nursing home care.
Many Americans are either unfamiliar or misinformed about long term care insurance. However, the best way to understand LTCi is to ask the right questions.
Here are LTCi questions you should be asking:
1. Is LTCi for everyone?
LTCi is designed to cover long term care expenses. Although LTCi itself is not for everyone, virtually all of us will need some form of long term care at one point of our life.
The U.S. Department of Health and Human Services stated that at least 70% of people age 65 or older will need some form of care based on their needs.
2. Can other insurance policies cover LTC expenses?
Only long term care insurance is specifically designed to cover for LTC expenses. Neither Medicare nor health insurance will cover much of long term care costs.
Although Medicaid will pay for LTC costs, it requires you to spend down all your assets to $2,000 before you can be eligible.
3. Doesn’t LTCi only pay for nursing home care?
Long term care insurance pays for a wide variety of LTC services. Most LTCi can pay for the cost of various forms of care such as:
Assistance with activities of daily living (ADLs)
Facility-based care
Home care assistance
LTCi allows you to choose the depth of your coverage after talking with your doctor or an LTCi specialist.
4. Who should buy LTCi?
LTCi can be expensive, especially if it will be purchased by an individual in their 70s or 80s. Many LTCi specialists advise people to buy their policy within their late 40s until mid 50s.
Premiums are higher for those who plan on purchasing it later in life. Health is another factor that can affect the rates of premiums. The healthier and younger you are, the lower your premiums will be.
It’s clear that the need for long term care is not exclusive to older adults. LTC can be needed by anybody from any age group and gender.
However, there is still the matter of how an individual can pay for care without being left in financial ruins.
The best way to avoid financial risks involved with paying for care costs is by planning for your future care needs with an LTCi policy.

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Source: 
http://retireplan.about.com/od/alreadyinretirement/a/long_term_care.htm
http://www.completelongtermcare.com/resources/