Long Term Care Insurance FAQ’s

What is long term care insurance? 

There is not one straight answer to this question.  All plans will differ and what the person can afford will greatly determine the kind of coverage.  Some individual life insurance plans offer long term care insurance but you will specifically need to ask your insurance provider if this is part of your policy.  Most basic long term insurance will cover skilled nursing home facilities and necessary care.  In home care for patients is another variable that you need to be very clear on with your provider.  This is typically not in most plans but there are some plans that offer coverage as long as you meet very definite criteria.

Who should have long term care insurance?

Long term care insurance is not for everyone.  If you look at statistics most people in rest homes are women.  So, they would be a better candidate.  Usually people that buy long term care insurance are protecting their estate that they have built over their lifetime or that has been in their family for generations and they do not want it sold off to pay for their care.  One thing should be your deciding factor – will it make your life financially hard to pay for this care now?  If so, you have no business buying this kind of coverage. 

What happens when costs inflate but coverage stays the same?

To avoid a huge disaster for your family and loved ones be sure that when buying your policy you know that it has inflation coverage.  This means that the plan will take into consideration that costs will rise from year to year but you will pay what your contract states regardless.

Are their health requirements when purchasing long term care insurance?

It depends on the plan and/or the company.  Most will want to ask you basic questions.  For example if you have been in the hospital in the last 12 months the insurance may ask why.  They will then take that information and determine if you are eligible or if it will affect your rate.