As people know more about long term care continuously, the more they are convinced that there is a big probability that one day, when they get older they would need long term care services. People are realizing that life expectancy nowadays is generally higher than it was before. Hence, they have to prepare for the long life that they would still live to experience in the future.
As people’s careers become more stable and they start building up their life, title and reputation, the next thing that a person would think of is securing his future. One of the things that would be included in that would be the long term care needs of a person in the future once they enter the retirement age.
Long term care refers to the kind of service that caters to the needs of people who need assistance in simple activities of daily life such as taking a bath, using the toilet, dressing, walking or moving, and eating. It is usually needed by people who have severe sicknesses, injuries, or simply old age. People who qualify for long term care services would be people who cannot perform at least two tasks of the activities of daily living.
The basic things that you would need to know regarding long term care (LTC) insurance would be the: features of the policy, your own policy plan, and the payment and benefits of it.
Features of A Policy
The different features of long term care insurance includes the amount of benefits, elimination period, benefit period, inflation protection, guaranteed renewable, waiver of premium, third party notification, non-forfeiture benefits, and restoration of benefits.
Amount of benefits refers to what you will get once you are done paying your long term care insurance. It is basically what you are paying for. It could be expressed in daily or monthly amounts and has a limit depending on your policy.
Elimination period is the time of waiting before you get the benefits from your long term care insurance. no benefit will be paid until after this time passes. The longer the elimination period, the lower your premiums will be.
Benefit period refers to the period of how long your benefits are going to last. It could be from a couple of years to a lifetime. The longer the benefit period, the more expensive the premiums will be.
Inflation protection is an important feature of a policy. It refers to the benefits that could rise over time as health care costs go higher. This feature protects you from getting so little benefit compared to the price that you pay.
Guaranteed renewable refers to the policy being renewed by the insurance company as long as you pay your premium.
The waiver of premium means that once you start receiving the benefits, there are no more premiums that should be still paid.
The third-party notification means that when you forget to pay your premiums, another person will be notified regarding this.
The non-forfeiture of benefits means that if you stop paying for your premiums, the policy will pay a reduced benefit for your long term care needs.
The feature restoration of benefits means that maximum benefits are put back in place one you receive benefits for a time and recover them again after a period of time which is usually six months without receiving benefits.
Your Own Policy Plan
Each person who purchases a long term care insurance policy has different needs and therefore has different terms and features for each person.
In having your own long term care insurance policy, you shouldn’t compare it to other people for they also have their different conditions and preferences
When you are planning for your long term care insurance policy, you should look at the factors that would affect you and your possible condition in the future. You should decide where you plan to live or stay in the future, where you want to receive your long term care, how long you would have to receive long term care and most of all, the company that would provide your insurance policy.
The issue of where you will live will have a great impact on the cost of premium that you will have to pay. Each state has different rates and terms regarding long term care so be prepared for these changes between states. Even the type of long term care service that you prefer would also reflect on your premiums, so decide early and finalize before you accept your policy.
Payment and Benefits
Regarding the benefits that you would receive, policies are quite flexible on this part and would sometimes let you choose which ones you would want to have in the future.
As for the payment, there are different ways on how to pay for your long term care insurance policy. You could research about them or ask your insurer for options that they allow in terms of payment.
Some of them are through mortgage, annuity, annuity hybrids, life insurance, and from out of pocket money.
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