Long Term Care Insurance Quotes

Long term care insurance helps pay for the cost of assistance, required by people who are chronically ill or disabled, for an extended period of time. Generally, the need for long term care is associated with the aging population. However, according to the U.S. Government Accountability Office, 40 percent of the 13 million people receiving long term care, are between the ages of 18 and 64. According to the American Association for long term insurance, only 8.2 million Americans currently have long term care insurance. A person who has insurance can be looked after in a nursing home, at an assisted living facility or in the comfort of their home. Most people prefer staying at home even if they are not in a position to perform daily chores without the necessary assistance. The monthly cost of assisted living is around $3030 while the monthly cost of being taken care of at home can work out to $3050. Nursing homes, of course. are exorbitantly expensive. Hence, when people require assistance for basic chores like eating, bathing, dressing and moving around the house, long term insurance is indispensable.

It has been estimated that nearly 70 percent of people aged 65 and over would require long term care at some point of time in future. Although Federal programs like Medicare and Medicaid exist, they are not suitable, for covering the cost of long term care, due to the following reasons. For people over the age of 65, the federal program Medicare may pay certain medical expenses. However, Medicare covers a small percentage of the nursing home cost in the event of a person getting hospitalized. The cost of home care is covered only for a short period of time. Medicaid, which covers the cost of health care for people who cannot afford health care, covers only half of all the nursing home costs. Hence, long term care insurance is a must for most people, since their assets may not be sufficient to pay for the cost of long term care.

Shopping for the Best Long Term Care Insurance Quotes

Federal Long Term Care Insurance Program (FLTCIP): Facilities Only Plan and Comprehensive Plan, are a part of FLTCIP, that provides long term care policy to the federal employees, annuitants and qualified relatives. The Comprehensive Plan, as the name suggests, includes benefits not provided by the Facilities Only Plan. The former covers up to 75 percent of the cost of adult day care and home care. Both plans cover 100 percent of the cost of hospice care, both at home and in a facility, the cost of the nursing home, assisted living care and respite care at a facility. The age of the employee is used to determine the amount of premium. The premium once determined, does not change with age or on account of a person developing health problems. Hence, FLTCIP is a wonderful option for people who qualify. For others, private insurance is the way to go.

Private Long Term Care Insurance

Group Long Term Care Insurance: Employer-based long term care insurance is a good option for people who are employed, since collective bargaining power results in a lower per head premium. Moreover, people unable to qualify for the insurance may be covered by group insurance plans. In case most of the group participants are below the age of 55, the per head premium is much lower as compared to individually purchased insurance. According to the American Association for Long Term Care Insurance, in the year 2008, 24 percent of buyers of this insurance were between the ages of 34 and 44, 36 percent were between the ages of 45 and 54, while 23 percent were between the ages of 55 and 64. The average premium for people, between the ages of 45 and 55, was around $690, while younger people could expect a premium as low as $300. This is because older people are charged a higher premium. The coverage can be extended to include the employee's spouse, parents and parents-in-law.

Individual Long Term Care Insurance: Although individual long term care insurance quotes are much higher than group long term care insurance quotes, there are instances when a person may be better off opting for an individual policy. For example, a younger person in a group of significantly older people may have to pay a higher premium for a group policy as compared to an individual policy. In this situation, it would behoove the individual to opt for a separate policy.

The long term care insurance policy should hedge against inflation since the cost of health care is expected to increase by 5 percent on a yearly basis. The insurance company should be financially sound so that it can provide long term coverage for a period of 10 to 20 years after the policy is issued. The coverage should be comprehensive and the company's claims policy should be well understood. Since private insurance companies have a 6 month pre-existing condition exclusion period and can increase the premiums on account of advancing age and health conditions, a person should ensure that he has the necessary finances to pay for health care, in case the need arises.

Long Term Care Insurance Pros and Cons

Long term care insurance is a product sold in the United States and United Kingdom which provides health care benefits beyond a predetermined period. The long term care insurance mostly covers facets which are not covered under normal health insurance policies and Medicare. This policy pays for the individual's care at a nursing home, an assisted living facility or at his/her own house. Since the policy has numerous benefits and drawbacks attached to it, going though the details becomes essential before deciding to take the policy.

The basic aim of a long term care insurance is to provide an individual with financial protection in case of an disability which might render them incapable of caring for themselves. Mostly, people opt for a long term insurance care policy when they do not want to be a burden for their children, after growing old, and want a certain amount of independence in old age. The insurance policy will cover and pay for all types of health care as specifically mentioned in the policy document. The policy varies in premium payment, depending on the type of coverage chosen by the individual. The more the benefit, longer the policy will provide for care, and consequently higher the cost of insurance.

Pros

The average annual cost of long term care, currently, can be anywhere between US $30,000 to US $85,000. This is a huge amount and is tipped to grow even further, due to inflation. There are chances an individual will have to relinquish his personal assets, life savings or use retirement funds to pay for this. Long term insurance policies provide a financial safety net when it comes to all these expenses incurred on health care in future. A good thing about these policies is that the policy is renewable and that there is no need for any medical examination to get the policy. As long as the premium is being paid regularly, the policy cannot be canceled.

Most long term insurance policies are flexible, indicating that they will pay for any kind of health care expenses like home care, nursing at home or assisted living care. The insured individual as well as his family members have a choice and an option of changing their mind as and when health care problems occur. Some of these policies are tax deductible, thus, bringing down the money spent on premiums.

Cons

Long term care insurance policies are generally expensive when it comes to paying premiums. Although rates vary according to the coverage of the policy, it is still a considerable amount. It is thus, a better idea for an individual to go through the entire policy period and asses his financial position to determine whether he will be able to pay the premium over the set period or not. Also, like all other insurance policies, there is a certain amount of risk involved here as well, because there may never be a need to use it and all the premium money is wasted.

Due to the numerous types of long term care insurance policies in the market, an individual may find it tough to decide on the exact policy to suit his needs. It is advisable to spend some time and weigh all options properly, before deciding on the exact policy to be purchased. Certain types of policies also demand extra money from people who have crossed a certain age limit or are currently suffering from any medical condition. Some of the long term care insurance policies have a maximum benefit period and a cap on the maximum amount they can spend, beyond which the policy ceases the coverage.

Coverage and Exclusions

Apart from knowing about the long term care insurance, it is also important to know about the coverage and exemptions of these policies. Individuals under this policy are provided coverage from the time they are unable to perform two activities of daily living like bathing and dressing. These policies also provide coverage for the care provided by a licensed nursing home, an assisted living facility or any other home health agency certified under Medicare.

Exclusions for this policy are common as found in other health insurance policies. There are certain kinds of mental and nervous disorders which are not covered under the long term care insurance policy. Also, people suffering from drug abuse or alcoholism problems are not covered under this policy, nor are people suffering from an self-inflicted injury.

Going through the pros and cons in the article should be useful while deciding to go with the policy or not. An individual needs to assess his financial position correctly, and consequently determine whether or not he will be able to pay the premiums or not. A long term insurance care policy is a good cushion for any old age medical expenses an individual might incur.

Long Term Care Insurance Costs

Many a time, you will come across statistics and facts such as '1 in every 5 Americans will become a senior citizen by 2030' or 'about 7 million Americans need long-term care'. It is a known fact that senior citizens may require long-term care in their later life, which is an excellent way to battle against old age problems. The term 'long term care', defines facilities that help senior citizens in performing the activities of daily living (such as eating, bathing and even taking a simple yet joyful walk in the garden). Hospice care, nursing homes, senior citizens' homes, adult daycare, Alzheimer facilities, are some common examples of facilities that provide long-term care. Living in a nursing home or an adult daycare can be quite expensive, and long term care insurance, is a policy that covers such costs.

The government of the United States in collaboration with insurance companies, has come up with a novel insurance plan, that is termed as the long term care insurance. The insurance costs is an important issue that has to be considered by every middle-aged person. After all, a good job done today, is a preparation for a better tomorrow.

What is a Long Term Care Insurance?

Long term care insurance (also known as LTC or LTCI) is an insurance product commonly sold in the United States of America and United Kingdom. These policies have a different coverage and operation. The basic intention of generation of such a policy is that any senior citizen or person with disability or chronic ailment, should be able to take care of himself by availing the long-term care services. One of the biggest advantage of such a policy is that coverage is provided to almost any person irrespective of his or her age.

How does Long Term Care Insurance Work?
The long term care insurance policy has a very different kind of working. The biggest drawback is that policy holders and insurance providers have to juggle the probability of health-related uncertain events that might come up during the time period of the policy. Hence the insurance providers usually calculate the annual premium and coverage differently for every person. Some of the important factors that are considered by companies for calculation of the policy cost, annual premium and policy time period include:

• Age of applicant
• Current health insurance coverage
• Current ailments
• Past addictions
• Chronic and non-chronic ailments
• Diet and exercise routine

After the application is filed and processed, the insurer requests the applicant to go through some important medical examinations. The next part is the important one. Long term care insurance policies have a waiting period that can be as long as 10 years (have lesser premiums) but at the same time it can be as short as 1 year (higher premium). After the waiting period of the policy is over, the policy holder can enjoy the benefits of the coverage, till the time period of the policy lapses. Such policies can often be renewed at a discounted rate, and can also be modified.

How much does Long Term Care Insurance Cost?

Aging is a matter of concern for almost every person. It is even more disturbing when, with aging, one develops chronic ailments or permanent disorders. Though the total cost is quite high, you will realize that it is also quite beneficial and necessary. On the basis of generic observations, it can be estimated that the annual cost of nursing homes can be as high as $80,000, or the expenditure of assisted living can amount to $40,000. In order to get the estimate of the premium, divide the amount by the number of years you want the policy to be. Insurance companies also often indicate that, inflation with time and increase in charges with age, are two things that have to be essentially considered while estimating the average long term care insurance costs. Companies also strongly consider the daily charges of nursing homes such as $100 per day or $200 per day, and directly pay the required amount to the nursing home, when you actually enroll in it. On the whole, if you want to consider taking a long term care insurance policy, you must consider paying anything from $50 to $12,000, a month.

The premium amounts can be quite exorbitant, so here's something that you can consider to curb unnecessary expenditures. When you enter your late 40s, it is the perfect time to take up such policies. The logic is that you do not require long term care till you reach 60 to 65. Thus, you have a long waiting period of almost 20 years. The result is that you will end up paying a very reasonable amount premium every year instead of paying exorbitant rates, and even if you continue or renew your policy, you will have a large volume of personal savings at your disposal. If you suffer from any disability, I would really recommend a life insurance policy at a young age plus a long term care insurance at exactly 40 or even 35. The logic is simple, a healthy waiting period means that you will incur least long term care insurance costs.