Insurance can be confusing and overwhelming, especially if you’re considering policies that will protect you or your loved ones should something happen to you. It can be tough to discuss final expenses or costs your family will need to take on should you pass away. It can be even more difficult to consider the possibility of needing long-term care due to injury or aging, even though 70 percent of Americans will need some form of long-term care in their lifetimes. It is important, then, to discuss Long Term Care (LTC) insurance as you get older. Below is a long-term care insurance FAQ list that may help you understand the basics of LTC coverage.
What all does LTC insurance cover?
A comprehensive LTC insurance plan will typically cover a variety of skilled nursing care, custodial care, intermediate care, adult daycare, and hospice care benefits. These services either take place at specialized facilities, like nursing homes, hospice facilities, assisted living facilities, or at the patient’s home. LTC insurance does not, however, cover any pre-existing conditions that were diagnosed or observed before the policy was taken out. It also does not cover mental and emotional disorders, except for certain forms of dementia and like diseases. Alcoholism, drug addiction, and injuries caused by self-harm are not covered by LTC insurance.
What could long-term care cost if I choose not to invest in insurance?
According to the federal government, around two-thirds of Americans will need long-term care at some point in their life, and without insurance, long-term care could cost anywhere from $20,000 to $100,000 out of pocket per year. Long-term care is not typically covered by health insurance, disability insurance, or Medicare, so it is important to invest in a quality, comprehensive LTC insurance plan.
How much is the monthly premium for LTC insurance?
The monthly cost of LTC insurance varies widely based on age, health, and geographical area. To get a long-term care insurance quote, call our life & financial department at (888) 539-1633.
When should I consider buying LTC insurance?
Most policyholders invest in LTC insurance later in life, but the earlier you apply the better in most cases. Though those in their 60s may be more inclined to invest in a comprehensive LTC policy, those in their 40s and 50s may get better premium rates due to their decreased likelihood to need care soon and to their better overall health.
Will my premiums increase as I get older or if I file a claim?
LTC insurance is designed to maintain the same premium rate throughout the life of the policy, but that isn’t a guarantee that your premium will never go up. Insurers are only allowed to increase premiums if it is deemed necessary by the state’s Department of Insurance. Your LTC premium will never go up due to your age, health condition, or if you file a claim.
Life Insurance Questions?
We hope this information on the basics of LTC coverage is helpful.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage to speak to one of our Life and Annuity experts (888) 539-1633
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