Long term care insurance is something that many people hesitate to pay for. Long term care insurance is notoriously expensive and it seems as if the premiums increase each year. When it’s time to consider paying for long term care insurance, most people hesitate for many reasons. The biggest question most ask is: Are the benefits really worth the money it costs to have it?
Most people are confused about what long term care insurance really is. Long term care insurance is insurance that helps pay for long term care for the policy holder if they ever need it. There are some people that have long term care insurance but have never used it. Because long term care can be expensive without insurance, insurance is recommended but not heavily pushed.
Like any other insurance policy, there are different benefits offered by different companies. There are different dollar maximums that will be paid each year as well as different coverage areas available. Those that choose to enroll in a long term care insurance plan should understand what they are getting from their particular insurance provider.
The Budget: Is It Affordable
In youth of adulthood, millions of people want a huge amount of insurance because they don’t know the future and they don’t want to burden anyone. For those that don’t have many bills, have a high paying salary or no dependents, paying for long term care insurance is something that’s alarming. For some, the price to maintain long term care insurance is staggering.
Premiums for long term care are notably expensive. Many of these premiums are expensive because of the amount of money that will be spent on long term care for the policy holder. The cost of care in a long term care facility goes up each year. When an insurance company is faced with paying those costs for an indefinite amount of time, the cost is somewhat passed along to the policy holder. The average cost of long term care was $205 per day in 2010. That cost has increased in the past 4 years. The premium for long term care insurance for one person is $170 per month on average. This is a lot of money for someone to pay if they live on a budget.
While it’s expensive to pay for, long term care insurance normally covers an expensive portion of benefits. Some of the most common benefits are:
· Home healthcare services
· In home personal care
· Daycare services for adults
· Assisted and/or nursing home care
Each company has a different set of benefits in their policies. What is covered in one policy isn’t promised to be covered in another policy with another company.
The Downside: The Fine Print Exclusions
While the benefits are wonderful, there are serious exclusions in long term care policies. There are many people surprised to learn that their insurance policy may not cover their care if they have:
· A pre-existing condition
· Certain mental health conditions
These things are surprising for many because these are things that are out of their control. For those that want the insurance, it’s best to discuss those exclusions with a licensed insurance agent.
Like any other insurance, many long term care insurance providers have a network of providers they will work with. For patients that want their care to be provided by someone outside of the network, the insurance company may not pay for the services. It’s best to check with the insurance provider before enrolling to make sure there isn’t a specific network that has to be used.
Long term care insurance is a great insurance to have if it can be afforded. There are millions of people that need help for long periods of time but can’t afford it. While it has great benefits, it is expensive. The decision to get long term care insurance isn’t one to make lightly or without being fully informed.